Net Leased Property Market Heats Up As Investors Look For Reliable Cash Flow

Net Leased Property Market Heats Up As Investors Look For Reliable Cash Flow

By:


Imagine what it would be like having a multi billion dollar company send you a check every month for 25 years. Wouldnt it be amazing if companies like Walgreens, CVS, McDonalds, 7-Eleven, Bank of America, or JP Morgan Chase were sending you a check each and every month?

Single Tenant Net Leased Properties with national credit worthy tenants have been long time favorites of Insurance Companies, Real Estate Investment Trusts, and High Net Worth Individuals. They buy them because they have long term leases with little or no management responsibility. The tenants are public companies sometimes worth billions and have excellent credit ratings.

Are you beginning to see how easy it would be for you to own properties like these?

No daily management, a billion dollar company as a tenant that takes care of all their own maintenance, taxes, and insurance. The property is a vital part of their business operations and they are very concerned about its appearance. It is a prime location with demographics that forecast high traffic and sales for the tenant.

They pay their rent like clockwork each month and the steady cash flow allows owners to build equity consistently over the lease term. The value of the prime real estate and the excellent credit of the tenant should allow you to get very favorable financing terms. Conservatively leveraged, with a self amortizing loan, the property will be paid off at the end of the initial lease term. If they leave, you have a valuable asset that is free and clear of debt. If they stay beyond the initial term after the property is paid off, and many do, your investment returns are increased substantially.

It is important to invest in a location that is or should generate substantial sales for the tenant. If they are making a lot of money it is unlikely that they will leave after the initial lease term. A buyer of a net leased property should carefully consider the location that he wants to buy. It is possible to use demographic studies and mapping software to compare the attributes of several stores to determine the best one to invest in. The good locations with the best tenants are always in demand. They will also sell at a premium. It is usually worth it to pay a bit more to get a premium location. This will allow you to sell the property quicker if you decide to sell prior to the end of the lease.

The popularity of credit tenant net leased properties with investors has increased because many investors are receiving very low returns on their cash deposits. Net Leased Properties with credit tenants can create a reliable income stream for investors who want little or no management responsibilities.

About the Author:
Patrick Moorton is President of Realty Advisors of Southwest Florida Inc. Owner and operator of NNN1031Exchange.com, an online resource for investors buying and selling Single Tenant Net Leased Properties with Credit Tenants in Florida.

For more information please visit: NNN1031Exchange.com



Article Originally Published On: http://www.articlesnatch.com


Tags: , , , ,

|

Loading...
Related....
Videos...

Recent Real-Estate Articles

Comments

Still can't find what you are looking for? Search for it!

Loading

Site Navigation:

Copyright 2005-2011 ArticleSnatch, LLC - All Rights Reserved.
Privacy Policy | Terms of Service.