It’s been said that money can’t buy happiness, but that happiness alone can’t keep out the rain. It’s for this reason that many people choose to invest their money as a way of generating more income over time.
The commercial real estate industry is considered one a great source for one’s initial investments. This is because, unlike residential real estate, you have a greater number of tenants and thus a greater source of income.
However, it can be challenging to invest in commercial real estate when you’re unsure of what makes the best investment and how to invest. That being said, here are a few tips for investing in triple net properties for sale for the new investor.
- Know your worth from the beginning
First and foremost, before you invest in an NNN property and consider a lease rate, it’s important to know that investors in NNN property offerings have to be authorized with a net worth of $1 million at the least. This is, of course, without the value of your primary residence included. If you don’t have a net worth of $1 million, you may still be able to invest if you have an annual income of $200,000.
- Take great heed of your tenant’s credit
A triple net investment is often considered a gold mine investment for those who don’t have the time or don’t want the time to do maintenance, pay maintenance fees, file property taxes, etc. However, it’s essential that you choose a tenant that has a great credit score because they’re going to be taking over these jobs for you. You want to be sure the person you let into your building does their job right.
- Pay attention to location
Before you consider investing in NNN properties and establishing a lease rate, it’s essential to first consider the location of the property. That is, is the area where the building is considered high demand? If not, it may not be the best place to invest. This is because your tenants will want to have a good spot on the road in order to establish themselves as a business.
Triple net investing is smart, especially for those who are new to the commercial real estate market. For more information on triple net leasing and NNN properties for sale, contact Sands Investment Group today.