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A Guide to Net Lease Investments
Net leased investments are types of investments in which people invest in commercial real estate. These investments may include office buildings, retail restaurants and also industrial. Office buildings may include single or multiple local tenants such as medical offices and local law firms. The retail one may include subtypes such as automotive. The industrial one may be either local, regional or national tenants.
With the global financial market, investors are often looking for a stable place, and a predictable one where they can put their money hence lease investment is one of the reliable and smartest investments tools that are available today. Sometimes it can be confusing to some investors who are unfamiliar with commercial real estate hence looking for a net leased investment professional will help. These professionals have a lot of knowledge concerning commercial real estate. They will also advise you and give you strategies and tricks that will help your investment to run appropriately.
Net lease professionals will advise on choosing the best guarantor because there are many that are most risky to have. They will also educate you about many things like the lease structure and lease terms that are crucial in commercial real estate investment hence you will be able to renegotiate with your tenants when they want to stay again. You will also be able to get the best location for your investment where you can get tenants here.
There are three types of net lease investments which include single net lease, double net lease, and triple net lease. A single net lease is where the lessee pays the property taxes and monthly base rent while the owner is responsible for the operating expenditures. The second which is double net lease is where the lease pays a monthly base rent, property insurance and finally the property taxes. The owner is usually accountable for all the operating expenditures of the property. There is some double lease investment where the lessor pays for the structure and maintenance while the lessee pays all the inside maintenance. In triple lease investment, the lessee pays a monthly base rent, property maintenance, and insurance. He or she also pays the property taxes. In this type of lease investment, there may be several legal protective clauses that could release a lessee of his or her obligation.
Many investors like the Triple N Investments because it provides appreciation and tax benefits. It also relieves the owner of many management responsibilities because the tenant is the one who will pay all building maintenance and property taxes in addition to rent.
For other related details, you could also visit http://www.ehow.com/facts_5317130_nnn-commercial-leases.html .