There is always a way to make more money through investment. Assets or cash pumped into a project whose aim is to generate more than was put in is at times referred to as investment. The rate at which an asset matures to bring returns and the value of the performance has a significant influence on the choice of investment an individual makes. Triple net Investment is one of the investments that exist, real estate investment to be exact. It is a kind of real estate investment where the owner leases out their property to a tenant that has a good credit record for a relatively long time of around 12 to 25 years.
Anyone who has made a wrong investment knows the loss that you are sure to incur. Thus, a few issues need to be looked into to avoid loss due poor investment choices. These factors include assessing the location of the property, evaluating the credit worthiness of a potential client, the clarity of the contract and even the nature of the lease.
It is the fact that the site of property especially in real estate is critical in making investment decisions. The reason for this evaluation to secure a property that is located in an area bound to bring profit. Signs that show the land is bound to appreciate or is marketable already is infrastructural development in the area like electricity, roads, and water. A property in a well-maintained state is bound to save you the repair cost and fetch a good lease value.
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Of great importance is the evaluation of the credit worthiness of a tenant so as to establish whether they are in a position to lease. A credit worthy client will be reliable in payment. Having a tenant who is defaulter could mar the duration of the lease with law suits and antagonism that may make the contract costlier than it ought to be.
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The contract also ought to be clear to both you and the tenant, so this is where a lawyer comes in. Legal language may be hard to comprehend, but a legal practitioner will help break it down and make sure there are no gray areas that tenant may use in future. It ought to be clear to the tenant the terms of contract termination and the reimbursement policy.
Last but not least,it would be vital to know the type of lease you would like to offer. The leases available include bond lease, modified net lease triple net lease and even gross lease and each has unique traits.
When it comes to Triple Net investment there is little room for mistakes when these factors are considered.