Posted by Tony on December 28, 2003 at 16:52:46:
A simple “Google search” led me to this site last week. Perhaps the best thing happened to me in the recent weeks. The wealth of categorized information and the depth of knowledge dazed me. Taking advantage of the holiday break I began to read the posts and the articles incessantly. One particular post on the ?Single tenant net lease? caught my attention. This is a new concept to me. I searched the archives and ?Google? to get more information. I know more now than I started a few days ago but there are still some key questions that I couldn?t resolve.
If I understand this correctly there are well known national companies like Wallgreen?s, Rite Aid, CVS and so on that are willing to rent the commercial space, pay the taxes and the repairs. Based on some statistics found at ?1031-nnn-properties.com? I see that most of the rentals produce annual cap-rate of 6% to 11% which is not bad.
I am sure I am missing something here. I see Ray?s point on the ?Triple Net Lease? for multi tenant lease in the ?Due diligence? article however the single tenant lease sounds great for an investment that?s almost headache free.
What type of issues an investor needs to be aware of when getting involved in this line of investments? Assuming that s/he is only interested on properties that have long term leases by the well-known businesses mentioned earlier. Is the rent only income or the landlord get a percentage of the tenant?s gross income?
If you can add even more to my curiosity it would be great.
Cheers,
Tony.