How To Get Started With Triple-net Lease Property Investing?

Triple-net Lease Property

Do you have a strong interest in purchasing commercial real estate? If yes, one way to go about it is by investing in triple net lease or NNN lease properties. Today, there are many marketplaces where you can find these properties to invest. However, you need to research to find the best option, since not all these platforms are legit.

In the rest of this post, you’ll discover how to get started with triple-net lease investing, including his to find the best properties on Net Lease World.

What do you need to become an NNN lease investor?

Net worth

One thing you need to consider before starting an investment in NNN properties is your net worth. For you to be eligible to become an investor, the general net worth rule says you need to have an approved net worth of $1 million.

Annual income

Your annual income also matters when it comes to investing in this type of leasing model. If you don’t have up to $1 million net worth and still have an interest in investing in NNN, this is where you stand a chance. The standard rule says you need to have an annual income of at least $200,000 to stand a chance of becoming a triple-net lease investor. However, whatever the business that’s bringing you the income, you need to be the one that finances it.

Starting price for investing in NNN

One question you need to ask before going ahead to finding triple net lease properties for sale is; what is the starting purchase price for entering the NNN market? Many industry experts will tell you to have at least $1 million.

In reality however, the type of investment properties you’re looking to buy will determine how much money you need to take care of the starting purchase price. For instance, a fast food restaurant will most like require you to pay between $1.5 million to $2.5 million. The same thing also goes if you’re looking to invest in a healthcare property.  For a dollar store, you might need between $1 million and $2 million.

Mortgage price 

To mortgage a NNN investment, you need to understand the down payment it’ll cost you. Do you have all it takes to pay it? If you’re taking a loan to purchase an NNN lease property, the financial institution might require you to provide 30 – 40% down payment. Of course, that doesn’t in any way affects the liquidity in your asset portfolio.

Other factors 

In addition to the requirements above, you need to ask yourself a few other questions to be sure you’re ready to start investing in NNN. For instance:

  • Are you intending to live on the income from this investment?
  • What’s your target monthly income?
  • Will you be taking a loan to purchase the NNN property?
  • Will you need tax write-offs?
  • Who will manage the property: you or someone else?
  • What lease term would you prefer?

You need to provide answers to these questions before going ahead to start investing in NNN lease properties.

Where to find the best triple net lease properties?

Once you’re sure you have all it takes to start investing in NNN, what’s next is to find the right properties for you. Net Lease World is one of the reliable platforms to find available triple net properties for sale. All you need is to input the necessary information in the manual search option fields to find properties that suits your requirements.

Also Read: Why Should You Consider Effective Advertisements For Your Business.

Leave a Reply

Back To Top