Factors to Consider Before Investing in Triple Net Lease for Sale

In the long-run, a triple net lease for sale can be a reliable source of income, given that you own the proper:

  1. Locations
  2. Lease
  3. Tenant
  4. Ownership
  5. Asset

 

In this article we discuss in detail how each of this prospect influences your investment in a triple net lease for sale.

Location

Triple Net Lease for SaleThe two foremost qualities of a right location are tenant demand and replace-ability. Oftentimes, NNN lease investors rely heavily on the primary tenant and overlook the prospect of an attractive location. A better investment decision is nevertheless made only in combination with a reliable tenant and good location. Although investing in a location high on demand can be quite expensive, in the long-run, it will give you relief because of its ability to replace tenant easily.

Asset

Asset plays another crucial role in drawing the course of your investment in a triple net lease for sale. The right asset should come with the convenient conditions. In real estate, remarkably, condition and cost are separate from each other. If you have to spend too much on a real estate location in one of the most desirable places in the city, the decision, by no mean, is rational. As well as that, specialized properties are bound to meet only a specific clientele’s requirements; making them vulnerable to any upside down in the financial market.

Tenant

A good tenant either makes or breaks it for you. The ideal candidate would maintain a foolproof credit record. It indicates the tenant’s reliability even in the face of harsh economic conditions.

Lease

Analyzing the terms of a triple net lease for sale is as important as the right tenant and location. The ideal lease term will have an extended period of agreement, to ensure stability. And it will be devoid of any terms that allow room for a premature termination of the contract.

Ownership Structure

Different ownership structures are there to accommodate your need. But, mostly, we recommend leased fee ownership and fee simple ownership. They are by many degrees better than owning only the improvements on a ground lease.

About the Author

Dwaine L. Clarke is the Founder and President of GCT Net Lease. GCT Net Lease is an investment real estate services firm exclusively focusing on Single and Mult-Tenant Net Lease Properties. The firm provides a full range of brokerage and advisory services nationwide to High Net worth Investors, Developers, REITs and Institutional Investment Funds. GCT Net Lease is headquartered in Windsor Connecticut.

Dwaine is also a nationally recognized speaker and consultant. He is also the author of three best selling commercial real estate investing books. Mr. Clarke’s experience branches through close to over a decade of working with and for some of the nation’s top investors to purchase, underwrite, develop and manage millions of dollars in commercial investment real estate. For his case, he has not only assisted these investors, but also became a student of theirs. Through careful analysis he started to understand what these investment experts were doing, using top strategies to buy, manage and sell their investment properties for maximum profit. He especially took note of how these investors were leveraging their time and how they made their decisions without interfering with their personal or business lives. Mr. Clarke is also active in investing and creating real estate partnerships, providing a vehicle for high net-worth individuals to own income producing real estate.

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