Net Leased Properties for Sale

Dollar TreeBefore investing in net leased properties for sale, you have to know about the types of property. Generally, triple and double net leases are the most common.   

Single net lease (N) 

The tenant is responsible for both base rent and property taxes.

Double net lease (NN) 

In a double net lease, also known as NN, the tenant bears the cost of building insurance and property tax. Other costs like common area maintenance and structural repairs are the lessor’s responsibility. “Roof and structure” is a reserved amount, to be paid by the tenant.

Triple net lease (NNN) 

In a NNN arrangement, the tenant has to pay for almost all the expenses. He has to bear the costs of any repair or maintenance as well. This type of lease is commonly seen in commercial freestanding buildings.

Bondable lease (Absolute NNN) 

This is also known as an absolute triple net lease, hell-or-high-water lease, and true triple net lease. In case of a bondable lease, the tenant is bound to carry every possible risk related to the real estate. The tenant can under no circumstances terminate the lease term.

Economics  

Without any doubt, NNN leases are equity investments. The investor is obliged to finance a handsome amount of the purchase price.  The property is subject to sale after building up equity.

Things to Consider Before Investing in Net Leased Properties for Sale

  1. Market Feasibility

Are you aware of the supply and demand chain in a particular area? Will it be feasible to invest there?

  1. Location

Location primarily decides whether you are investing in the right place. It is more important than getting the ideal tenant. If your property is located in a dull area, you may find it hard to get another tenant when the present one is gone.

  1. Financial Feasibility

Will you be able to make enough profit for the risk you are taking? Thoroughly scrutinize every detail before you invest in net leased properties for sale.

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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