Investing in the real estate market is one of the best types of investments that you have surely heard of from a lot of people. If you look at the real estate market, you will see that investors have now come to go for conservative investing. One area of the real estate market that is getting recognition is net lease real estate.
You can benefit a lot from net lease real estate if you have some idea what you are doing. Investing in net lease real estate encompasses buying a wide range of commercial buildings. Hiring net lease brokers may be necessary if you intend to know a great deal about making net lease real estate investments. This article will serve as a beginner’s guide to net lease real estate if you intend to read more now about it.
When it comes to dealing with net lease real estate, commercial establishments ranging from department stores to drug stores are what you get. Other properties being dealt with include parts suppliers and automotive services. This kind of investment also appeals to those who deal in distribution properties and those who are involved in bank branches.
In dealing with net lease real estate, the first thing that you have to know about it is that it is made up of properties that are built based on a contract made by the developer with the tenant or user of the building. The contract that must be signed involves a long-term lease starting from 10 to 25 years. It will be the job of the developer to be coming up with several location options for the tenant or user and make sure to offer such assets to the public who wants to invest in them. The fee is very basic when it comes to being an investor of net lease real estate. Simply put, you are not going to be buying some stock as you become an investor of this kind of property but more of only the building besides the lease.
Most of the leases in net lease real estate are triple net properties or double net properties. With triple net properties, the tenant will have to deal in making payments with all the costs that are involved in the lease. What are included in these deals are insurance, taxes, and common area maintenance. Furthermore, tenants in this arrangement may have to be involved in being responsible with the integrity of the structure as well as replacement of parking lots or roof. On the other hand, with double net properties, the landlord or owners will now be the ones to deal with the replacement of roof, parking lots, and structures.
The best candidates for net lease real estate are those who do not want to purchase stocks and other shares of a property but want a simple fee owned net leased property.