The triple net lease market is quickly rising as one of the most lucrative in real estate today. With doubts cast aside and myths forgone, many investors have dived in and are yielding unforeseen profits. For this reason, many new investors are now in search of triple net properties for sale.
There’s been increased interest in NNN properties since the start of the pandemic for various reasons. Interestingly, this demand is only expected to rise further. Therefore, the competition for triple net properties should increase considerably as well.
Investing in triple net leases can be done in two different ways. You can obtain properties either from a renowned company or directly from a seller. You can do this by searching for “NNN Properties for sale by owner.” Afterward, you just have to follow the proper steps to invest.
Steps to Take When Investing in Triple Net Lease
As a potential investor, you’ve probably considered the many benefits and few cons attached to owning an NNN property. However, you may not know the exact steps you need to take to actualize your dream. Not to worry, below are seven steps to buy an NNN property:
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Decide How Much Investment Returns You Want to Receive
There are many ways that you can get an NNN lease from the business. However, all these depend on certain factors, which include:
- The tenant’s preference
- Property’s location
- Expenditure made by the landlord
- Tenure the tenant has left
- The year the initial owners built the structure, etc.
These factors significantly affect the cap rate you’ll get. When trying to decide which triple net lease properties for sale to invest in, you should consider the cap rate you prefer. Stick to it and don’t reduce it. For example, if you want a 4.5% cap rate, but you get an offer for 4%, patiently look for others that offer your requirements.
Make studies of the market you’re looking forward to investing in so you can have some knowledge of your own.
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Get Some Advice From an NNN Lease Expert
As soon as you’ve got some base knowledge of the market situation, it’d help if you started to look for professionals with expertise in the triple net lease industry.
Triple net lease advisors are realtors with sufficient experience and information regarding NNN investiture. These experts will be able to provide as much information as you need, and due to their experience, they’ll also be able to identify which property is promising to give the kind of yield you desire.
When choosing the right NNN lease advisor for yourself, you’ll need to ask potential ones how much experience they have in the triple net lease field. You wouldn’t want an amateur dictating something that will determine the state of your finances for a long time.
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Configure The Terms of Agreement With Your Tenant
Sometimes, you may see another investor with the same cap rate goals having an excellent client, and you think you’ll get the same. However, unless you set the standards of the kind of tenant you want, you could be in for a surprise.
It’s better and safer to work with tenants who rent structures designed for a specific purpose – such as restaurants – in several locations nationwide, than to work with one who has a few spots in a localized area.
This way, you’ll reduce the risk of the client bailing out before the contract expires and get a guarantee that they’ll cover rent and the net expenses regularly.
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Look for a Suitable Credit Facility
It’d be helpful if you have a suitable credit facility that’ll be able to provide all the credit you’ll need at comfortable interest rates. This point is crucial because contingencies can occur, and you might have to spend some money fixing your structures.
Therefore, have a plan that helps you anticipate your income and pattern it towards covering any debts.
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Analyze Your Opportunities and Make Your Choice
Look into several options depending on your preferred location. For instance, if you’re in Virginia,or simply prefer there, you can search up “NNN properties for sale in Virginia” to get a list of all available properties in the area.
When you start receiving opportunities to invest, ensure to create folders to keep them for future reference. Have a folder connected to the cloud to add information regarding sellers offering properties for sale frequently. It’d be best if you also jotted down the advantages and cons of the sellers’ offers so that you’ll be able to make comparisons and choose which works best for you.
When you do that and are certain of the seller you’ll be buying from, contact your advisor to write a letter outlining your intention to buy the property.
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Review The Property
Once your offer gets accepted, you’ll need to review the property to see whether it fits the description and how many repairs you’ll have to make to increase the value.
Hire a local inspector to evaluate the property and have them make a record of it. Doing this is especially important when you’re not able to go there physically. For example, if you found a CVS NNN property for sale, you should consider checking whether the place is still suitable for storing medicine.
What you’ll do next is review the existing lease and see if it matches what you require. Then, you should enlist the help of a legal practitioner to get a complete understanding of the lease on the ground.
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Make Maximum Yield on Your Property
Once you’ve made the purchase and everything is in place, the next is to sit back and enjoy the benefits of being an NNN property landlord. Not only will you make profit from the rent being paid, but you’ll also be able to assign certain portions of the cash you receive to paying off any existing debts and increasing your capital base.
Conclusion
Finding and purchasing triple net investment properties for sale can be an exciting transition, given that you follow the proper steps.
With you knowing your plans, getting the right advice, analyzing options, and making a maximum yield of your property, you’ll be able to make the right choice from the numerous triple net properties for sale and become a proud and profiting landlord.
To achieve this with less stress, contact Buy NNN Properties. They’re seasoned professionals willing to help you make the best choice.
