In this video, Joel explains the common misconceptions that are associated with triple-net properties.
In addition to explaining the misconception, he details what is required from these common misconceptions.
What are the common misconceptions of triple-net properties?
Common misconceptions of NNN properties are:
- No due is diligence required when evaluating a triple net property
“Nothing can be further from the truth” as stated by Joel concerning no due diligence being required when evaluating a triple net property.
Why is due diligence required with triple-net properties?
Thousands of triple-net properties are listed for sale on the market weekly, but each property is NOT created equal. Some of these properties have shorter term or long term leases, personal guarantees may require sales disclosure, located in weak rural areas or strong suburban to urban locations, high traffic counts, bad access, poor sightlines, and a number of other factors which further proves that all triple net properties are not all the same.
What is required for each triple-net property?
Proper underwriting and due diligence are required for each property. The importance of hiring a qualified and experienced commercial retail real estate broker that is a buyer specialist is crucial because the agent will be working in your interest when purchasing the property. The agent should be with you not only through the property purchase but the ongoing ownership and eventual exit and sale of the property. By the commercial broker staying engaged and in tune to the investor’s portfolio and goals over time it can help lead to a successful outcome.