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Investing in the real estate market is one of the best types of investments that you have surely heard of from a lot of people. If you look at the real estate market, you will see that investors have now come to go for conservative investing. And one such area in the ever-competitive world of real estate is the net lease real estate.
You can benefit a lot from net lease real estate if you have some idea what you are doing. Investing in net lease real estate encompasses buying a wide range of commercial buildings. If you want to really know a great deal about this investment venture, make sure that you get in touch with competent net lease brokers. This article will serve as a beginner’s guide to net lease real estate if you intend to read more now about it.
When it comes to dealing with net lease real estate, commercial establishments ranging from department stores to drug stores are what you get. Other properties being dealt with include parts suppliers and automotive services. The inclusion of bank branches and ground distribution properties also work out in this type of investment.
In dealing with net lease real estate, the first thing that you have to know about it is that it is made up of properties that are built based on a contract made by the developer with the tenant or user of the building. Leasing typically involves a long-term deal that is between 10 and 25 years. Since developers are tasked to build different locations for the tenant or user, they are the ones who must be able to offer their assets that are put up for sale for potential investors. If you must invest in net lease real estate, take note that the fee scheme just a basic one. Usually, when you become an investor, you will be buying the building in addition to the lease and not the stock.
Most of the leases in net lease real estate are triple net properties or double net properties. When it comes to triple net properties, this where the tenant is responsible in paying all costs that are part of the lease. What are included in these deals are insurance, taxes, and common area maintenance. Furthermore, tenants in this arrangement may have to be involved in being responsible with the integrity of the structure as well as replacement of parking lots or roof. With double net properties, it would be the responsibility of the landlord or owner however to be dealing with the replacement of the parking lot, structure, and roof.
If you do not want to engage in buying shares like stocks in real estate and just want a simple owned net leased property fee, then net lease real estate is for you.