What to Look for in Triple Net Lease Properties for Sale

Triple Net Lease Properties for SaleIn the long-term triple net lease properties for sale could be your ultimate source of income. It assures a real estate ownership along with the structure: location, asset, lease, ownership, and tenant. In this article we discuss how these components influence the structure of triple net lease properties for sale as a whole.

 

Location

The idea revolves around the concept: tenant demand and replace-ability. Many ignore the aspects binding to location while investing in triple net lease properties for sale. This is not a practical approach to rely upon the primary tenant to offset the impact of a weaker location. The ideal invest concludes in both a strong location and a strong tenant. Though the net asset cost might be higher in a lucrative location, you are left with the option to attract a flow of clients for the property high on demand.

Asset

The integral part of ideal triple net lease properties for sale is the right conditions and the pricing. In real estate, condition and cost are interdependent. You can buy a low-quality asset at lower prices, but the top locations may cost you a lot; either ways, it doesn’t make your investment foolproof. The viability entirely depends on its ability to place tenants at any given time.

Tenant

When it comes to selecting the right tenant, you should consider those who have a clean credit rating, with no or little credit record. Also, you have to distinguish between franchise-backed and corporate-backed leases.

Lease

Thoroughly analyze the terms of your lease. A lease should accommodate a lease term long enough to offer stability, lease bumps, regularity – free of unfair early termination.

Ownership Structure

The ownership structures play a key role in protecting your interests when investing in triple net properties. Both leased fee ownership and fee simple ownership are recommended. You should own both the improvements and land; instead of owning the improvements only.

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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