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