5 Important Factors to Consider When Looking for an NNN Property for Your Investment
NNN properties provide immense cash flow and equity growth at less risk over time. The tenants pay the rent and insurance, take care of taxes and maintenance, and landscape the property. They are more appealing because they can provide more predictable income and lower expenses. Here are the main features that every investor should look for when investing in NNN properties.
1. Look for Well Maintained Units
NNN properties can be an excellent investment, but you have to make sure the property is in good shape, and the tenants are reliable. The best way of doing this is by having a professional inspect the property. When a professional thoroughly inspect a unit, they can tell if;
- The carpet installation was correct
- There are signs of water damage on the ceiling
- The cabinet doors aren't fitting correctly on their hinges, or,
- If the heating and cooling system aren't is properly maintaining its temperature.
Well-maintained units will reduce the chances of vacancy and increase cash flow to your pocket. Keep in mind that an older building with good maintenance can outperform a newer building with lousy care. One of the easiest ways to save money is to buy an NNN property in excellent condition. You will save on maintenance costs, and it can qualify you for higher loan amounts from lenders.
2. Ensure The Property Has All That You Need
NNN is a particular type of investment and comes with stringent rules. It is not just a contract to buy and sell; you will also be signing a long-term lease. Therefore, as an investor, you need to ensure that the property you plan to buy has everything you need since it involves a long-term engagement. When looking at an opportunity to invest in an nnn lease property, you need to ensure the property has everything you need.
It's also important to consider whether you will be using the property yourself or letting it out and the primary uses. For example, if you have a lot of stuff, it would be wise to go for a building that has a storage facility for your extra items. Whether you plan to buy an industrial property for sale or a medical facility investment, having a suitable building is a must.
3. Look for A Place You Can Make Money Without Requiring Too Much Attention
Finding a great deal is a must before diving into the market or signing an NNN lease contract agreement. Whether you are a property manager looking to purchase an NNN property for rental income, or a buyer looking to buy a property with an NNN lease, you could think up a long list of properties you would like to invest in or buy.
What makes the search easier is verifying a property is indeed suitable for investment as an NNN property. The NNN lease property should be able to make you money, taking advantage of location, a well-maintained property, and the nature of your business. Understanding the current challenges of the property will help you improve on strategies for making more money.
4. Find an NNN Mogul Who's Ready to Hold Your Hand
You are about to invest in real estate. The process and the technology might seem a little daunting. You may not even know where to look for a good deal. There's no need to worry if this sounds like you because you can utilize reputable experts in NNN properties.
Sands Investment Group is an expert in triple net leases, ready to hold your hand through the entire process and provide you value-added services at every step of the way. As a newer investor, you need an experienced NNN expert that will walk you through the process, so you get your feet wet the right way. Find a real estate mogul willing to show you the ropes and teach you the fundamentals. It will save years of learning from your own mistakes.
5. Business Type
It's essential to consider the type of business that can survive throughout the lease period and withstand economic changes. The type of business under NNN lease property must generate enough revenue to pay rent and keep up with other NNN lease property expenses. However, the best kind of business may vary with the property's location.
NNN properties offer broad appeal to investors in that their income provides a steady stream. NNN lease agreement has a consistent backing by adequate building insurance, and the lease agreement protects against liability issues. There is a risk, as with any investment, but a well-chosen NNN property can be a very beneficial investment. However, professionals like Sands Investment Group guarantee the success of your investment in NNN properties.