Commercial real estate or investment income properties have been around for over 100 years and today are even more popular than ever to produce cash flow and appreciation for its owners. But a leading segment of the industry that did not exist many years ago is the NNN OR NET NET NET OR TRIPLE NET property VERSION of investing.
What Does Investment Property or Income Property Really Mean?
Simply stated, owning investment property or income property that has no responsibilities to the owner with the burden of expenses falling on the tenant or lessee.
Collect a check in the mailbox with no headaches or phone calls about repairs and collecting of taxes or insurance associated with the property.
The tenant, usually a strong credit risk, pays the landlord a rent and takes care of everything else. A long term lease of over ten years is the NORM, easy to finance with a lender and situated on a prime piece of real estate for future value.
If the investor of investment property or income property does their homework in advance, the risk factor will become negligible in the long run with a steady cash flow created and most likely appreciation in the future. A generic building in a great location with a credit tenant at a rent that is proper for the area will bring a successful outcome.
Overpaying in the beginning with too high of rent for the building or too much per sq. ft. for the structure can also assure of oneself of a future disaster.