Passive investing is a discipline in which investors acquire assets that offer long-term appreciation and require limited maintenance. Also known as “couch potato investing”, passive investing is perfect for those who wish to reap the financial benefits of investments without owning assets that require them to attain a high degree of knowledge to be a responsible owner, or demand them to invest a significant amount of time in maintaining the value of the asset.
When it comes to passive investing in real estate, acquiring triple net investment property is an excellent option. Because the tenant pays real estate taxes, building insurance, property maintenance, and oversees the daily operations of the property, the property owner possesses a relatively self-sustaining asset. If you would like to make a passive investment in real estate, acquiring triple net investment real estate will offer the following passive investing benefits.
NO DAY-TO-DAY MANAGEMENT RESPONSIBILITIES
The day-to-day management of a triple net property falls to the owner of the business that occupies the property. The owner of the property receives the financial benefits of being a landlord without dealing with the headaches that traditionally come with property ownership.
LEVERAGE THE COMPETENCIES OF OTHER PARTIES
When you acquire triple net real estate for investors, you needn’t know a great deal about investing in real estate or running a business. A broker helps you acquire the right property, and the owner of the business that occupies the property oversees daily business operations.
MAKE MONEY WHILE HANDLING OTHER BUSINESS
Passive real estate investments make money for the owner while he handles other business. You need to have money to make money, as the old saying goes. For many investors, the money generated from passive real estate investments makes other business deals possible.
ENJOY THE FINANCIAL SECURITY OF A LONG LEASE
Because a triple net property is typically positioned in an ideal business location, the tenant typically wants a long lease. Ultimately, the financial security of the location is mutual; the tenant gets a property that helps it drive sales, and the property owner gets the security of a long lease.