INVESTING IN TRIPLE NET LEASED PROPERTIES
What are 3 net leased properties Tenant pays taxes, insurance and maintenance. Providing landlord a no hassle income. These are typically single tenant facilities, or may have a few tenants who provide their own property management. Types of properties Retail - single or 2 tenants facility Manufacturing Single tenant service Single tenant warehouse w/ small office Types of Tenants National Credit Local Credit Non Credit Return on Full Cost National Credit - 7-8% Regional Credit- 8-10% Non Credit 12-20% Financing Available 60-80% Institutional 70-90% Bank Owner carry back balance How to Profit Immediate cash flow or Use all cash flow to pay note off in 10-15 years. Will own free and clear property with no investment Criteria Rentability more important than purchase price Tenant demand more important than purchase price
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