The real estate market has become very alluring for a number of people who want to invest in something that is profitable to them. 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. Dealing the buying of commercial establishments is just one of the many aspects of dealing with net lease real estate. 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.
The properties that are involved in making net lease real estate investments are often commercial properties that range from drug stores to popular department stores. Other properties being dealt with include parts suppliers and automotive services. Even distribution properties and bank branches sit well when investing in net lease real estate.
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. Leasing typically involves a long-term deal that is between 10 and 25 years. Since developers are tasked to build different locations for the tenant or user, they are the ones who must be able to offer their assets that are put up for sale for potential investors. When you invest in net lease real estate properties, the fee is quite simple. 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. When it comes to triple net properties, this where the tenant is responsible in paying all costs that are part of the lease. These costs include common area maintenance, insurance, and taxes. Also, the tenants may have to be responsible in parking lot and roof replacement as well as structure integrity. When it comes to double net properties, though, the replacement of these structures like roof and parking lots will all be up to the landlord or owner.
Going with net lease real estate is a good call for those who dislike having to buy stocks or any share for that matter in real estate and would rather go with a fee that involves net leased property that is owned simply.