Why Investors Sell A Triple Net Lease Property
If you are looking into the purchase of NNN properties for sale, you may also want to consider having an exit strategy. This is in case your plans do not play out the way you would like. While most investors gain considerable advice and guidance throughout the purchasing process, the market can change quickly and without warning.
In these instances, investors often have to choose whether or not continuing their ownership of the triple net property is worthwhile. Moreover, they will consider whether it is the best financial decision.
Other reasons for selling property include the end of lease terms when a tenant can decide whether or not to vacate the building.
Are you an investor considering the purchase of a triple net property? If so, check out the website for Net Lease World!
3 Reasons Why Investors Choose to Sell Their NNN Property
1. Lease Term has Ended
Most triple net properties for sale include leases that run anywhere from ten to twenty years, sometimes longer. The lease terms stipulate that tenants are responsible for the bulk of the building’s care and maintenance, as well as the mortgage.
However, there are times when the owner or investor is required to maintain the structural integrity of the building. So, if a foundation has issues or electrical rewiring needs to be done, the investor may be responsible for this.
Whether the investment property is a Dollar General or 7 Eleven, the tenant can legally choose whether to vacate the building once their lease term is up or to renew the lease. If they choose the former, this can leave the investor in a difficult spot.
For instance, it will now require that they be responsible for mortgage payments and all expenses that were once the tenant’s responsibility. For this reason, many investors will choose to list their NNN property for sale.
2. Lack of Revenue Coming In
Most investors know that location is everything. A great location of the property means an easier and more consistent flow of customers. However, cities change every year, and what was once a bustling portion of town might eventually become second to another, newly built section.
A decrease in customers and traffic to businesses is the natural result of these changes. Many small business owners will struggle to stay afloat, while chain stores will eventually relocate to the busier part of town. And so the cycle continues.
The lack of revenue stream could cause a tough spot for many investors. So, when you purchase your property, make sure you know the reasons the former investor or owner is selling. Take it into consideration prior to the purchase.
3. Separation of a Partnership
There are occasions when more than one investor has purchased property. If, after a time, they begin to lose interest in their investment or no longer see eye to eye, that partnership may go through a separation.
Should both parties agree, the property could very well be listed on the market once more. If you decide to purchase such a property, ask the former owners about its history. Additionally, make sure there are no pending problems or extenuating circumstances that could hinder a return on your investment.
Check Out Net Lease World for NNN Properties for Sale!
If you are looking for a worthwhile investment in your area, consider logging onto Net Lease World. There you can find a complete listing of NNN properties in your area. Also, you will find all the details of each listing, including prices, location, and photographs.
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