Investment in single-tenant-net properties will prove a reliable form of income producing in real estate. Those who purchase NNN property often ignore the importance of location and rely heavily on the strength of tenants, while the better investment includes a strong tenant in strong location. On the other hand, some are not able to find the right assets, which is another important aspect if want to buy NNN property. Low quality assets make a good sense, if purchased at severally low price. In the same way, if you are paying too much for real estate products, it would be not a good decision.
Another very important consideration to buy single tenant NNN properties is to find out-who is the right tenant? Well, in this highly volatile economic scenario, we recommend assets with strong tenant with no debt and good credit rating. A lease cannot be strong, if the tenant is liable for payments to some financial institutions or individuals. Consider the lease which is long term and allows you to pay rent in the contractually obliged manner. Select the one that is free from unfair or early termination clauses or renewal options. So, before choose any real estate investment, keep the above things in mind.
It is also very important to understand real estate ownership structure types before shelling out your money. There are so many types of real estate ownership, but we will suggest you free and leased fee ownerships. So, if you are looking to invest in single tenant NNN properties do consider the aforementioned suggestions; if you want earn high returns on your investment.