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Owning property incurs a lot of overhead costs. These costs can add up for even the most successful property investor, even if you have mastered the art of how to buy a foreclosure. Net lease investments are a handy way to help lower your overhead costs. If you do not already know the benefits of a net lease investment, you are missing out. Learn all about how net lease investing benefits property-owners like yourself below.
Shifted Burden
A net lease investment shifts the burden from property owners like you to your renters. When you use a net leasing strategy, your renters are responsible for paying property taxes, insurance and maintenance. Without these net lease agreements, you would be responsible for those property costs. Shifting the burden from you, the business owner, to the renters is beneficial in numerous ways.
Steady Income
With net-lease investments, property owners gain access to a steady source of income. This is obviously one of the best type of investments to make, even if you already invest in a Baron small cap fund. Investments that pay yearly dividends are no match for these types that pay monthly dividends. The steady income you earn from a net lease investment gives you the safety to make other, more risky investment decisions. This is hugely beneficial to your potential for market gains. Obviously, this is definitely something to look into if you are considering net lease investing.
Less Responsibility
Net lease investments allow you to become a property owner without all the responsibility of being a landlord. Renters are responsible for maintenance and upkeep. They are also responsible for insurance and taxes. That means that you, the owner, do not have to worry about any of that. You will not have to be a hands-on landlord. Yet, you can still benefit from the income of being a property owner. The less hands-on management your investments require, the better. This is obviously a considerable benefited afforded by an investment in net-leases.
Long-Term Leasing
A net-lease agreement is also more conducive to long-term leases for renters. That means that these investments are less-risky than other similarly lucrative investments or strangle options. For investors looking for a steady stream of income, this makes net lease investing a wise decision. A net lease investment allows you to approve tenants with long-term leases, like 15 year leases or 25 year leases. For those 25 years, you have a reliable source of income. This is a huge benefit for risk-averse investors.
Low-Risk
Due to the lengthy nature of most net-lease agreements, these types of investments are fairly low-risk. That makes them very enticing investment opportunities for investors with little risk tolerance. These income investments are practically a sure thing. You can guarantee a stream of income from these low-risk investment opportunities. Obviously, that is something any investor is sure to benefit from.
If you are looking for low-risk investments, net lease investing could be the way to go. Net lease investments offer a ton of benefits to property owners and landlords. Further, the benefit long-term renters as well, giving them more control over their property, their home. If you are interested in a net lease investment, consider the advantages listed above. You, and your investment portfolio, are sure to benefit from these non-stock holdings.
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