This funding technique includes buying properties leased to 3 tenants beneath a internet lease settlement. This implies tenants are answerable for property taxes, insurance coverage, and upkeep prices, simplifying possession for the investor. An instance can be a retail constructing with a espresso store, a cell phone retailer, and a dry cleaner, all working beneath long-term internet leases.
The enchantment of this method lies in its potential for producing secure and predictable revenue streams. The diversification throughout three tenants mitigates threat in comparison with single-tenant properties. Moreover, the web lease construction reduces operational burdens and surprising bills. Traditionally, properties structured on this method have attracted buyers searching for passive revenue and decreased administration obligations.
