Clever businessmen know when to take risks and when to take a step back. This is their approach, especially when investing in a lower risk business that has long-term passive income and very minimal responsibilities. One example of this is buying Triple Net investment properties for sale.
With NNN, you can sleep well at night while earning dollars. You can build a stable offshore portfolio that delivers your dividends every quarter.
How Triple Net Lease Investment Work
Investing in an NNN property means buying a property that you also lease out to a tenant or lessee who agrees to pay the full cost of running a property. Such expenses include maintenance, insurance, taxes, rent and utilities. You have to take note though that since the lessee is the one taking care of these maintenance and other costs, the rental rate of your property will be lower than the standard lease agreement.
For you to buy Triple Net investment properties for sale, you should have a net worth of at least $1M. This does not include the value of your primary residence or the $200,000 in your income. But this does not necessarily mean you are not qualified if you are a small investor. You can still invest through real estate investment trusts or REITs that also have NNN properties included in their portfolios. If you are unsure where to invest your hard-earned money, talk to brokers who have the experience and expertise in buying NNN property for sale.
Top Reasons for investing in Triple Net Investment Prop
erties for sale
There’s a high possibility that the famous brands you patronize are under a triple net lease agreement. These lease investments can be your long-term and steady source of income while providing flexibility and stability. If you are looking for a smart investment, invest in triple net and enjoy these perks:
- Enjoy rewards without that much of a risk. If you are looking for secure investment opportunities, then NNN leases are your best bet. They are similar to bonds that provide steady and predictable ROI in the long run. Think about Mcdonald, Dollar General, 7-eleven and Bank of America where the tenants are also often part of the franchise. Because this is a long-term agreement, you can enjoy a low-risk and financially stable investment.
- No need to sweat over small things. If you want to be free from the managerial obligations of running a property, then go for triple net. Tenants are the ones who worry about their insurance, taxes and maintenance. They are also the ones in charge of upkeep and expenses that come with leasing a property. This benefits your financial situation by providing you opportunities to expand your bank account without unnecessary headaches.
- You can let your profits pile up. With NNN, you can use your capital gains to your advantage and avoid paying on your gains by investing your profit into another venture. Buying larger properties will help you grow your investment in the long run.
- You can diversify your portfolio. Since these types of investments are low-risk and can potentially deliver a passive and steady income, they can be a potentially lucrative asset to your portfolio. And the best part is it involves little to no management at all. This gives you the chance to focus on other investments that are high-risks and need hands-on management. As a result, you will be able to diversify your investment portfolio and avoid those fluctuations in the market.
Finding the Right NNN Properties for Sale Florida Market
Knowing the great benefits of NNN properties is important as long as you find the right NNN properties to invest in. Here’s how you can pick a property that gives you the best returns:
- The tenant must be creditworthy. If you are looking to buy triple net investment properties for sale that already have an existing tenant, make sure they have a good history of paying rental fees on time. Asking the selling of any financial statements is a smart move. This will prove that the tenant is creditworthy.
- The location should be ideal. Tenants in Florida may come and go but if your NNN properties for sale Florida business is located in a high-traffic area plus with street access, then you are on the right track. It must also be visible to passers-by and choose to anchor stores to attract potential shoppers. In case your tenant wants to end your contract, finding a new lessee will not be a problem if you have a good location.
- Find the best way to finance your investment. You can do this by getting the right financing option for your purchase. You can find various financial solutions such as taking out a loan from a credit union in your locality or you can use your bank. Whatever financial solution you opt for, always check the terms and conditions. Make sure it suits your current circumstance.
- Think about the potential business renting the property. In today’s economy, it is important to choose recession-proof businesses. Make sure to buy NNN for sale by owner previously or currently occupied by establishments like convenience stores, retail stores, pharmacies, gas stations, car service centres and fast-food chains. Look into big brand names that will potentially rent the property.
- Seek help from a reliable NNN expert. If you want to avoid future headaches when investing in NNN properties, seek help from experts specializing in triple net lease. If you are a new investor, getting started can be quite challenging. But with the help of the right professionals, you can navigate the market and choose the right properties that will yield the best returns.
When it comes to investing in NNN property for sale, everyone’s a winner. You earn a steady passive income with very little responsibility associated with the property. You just sit back and collect the monthly rent check. These types of properties attract everyone, from the individual investor down to the world’s largest institutions. It is also quite flexible. If you are a tenant, you can negotiate a NNN lease to make it favourable. Just be sure to get in touch with experts to help you navigate the market and make the most of your investment. Or visit our blog to learn more.