In this video, Joel explains the different ways that you can invest in a triple-net property. There are different options for investing and each option has its own set of requirements.

He discusses the different property investment options along with the responsibilities, benefits, and approximate costs for each investment. 

I’m interested in investing, what are the different property options?

The options that Joel mentions in the video are:

  • Owning a Triple-Net Property directly
  • Single Tenant Net Lease Property
  • Syndicate with an experienced sponsor

What are the requirements, benefits, and costs associated with the property options?

When you own a triple-net property directly, the investor is in more in control of the exit of the property, if/when to refinance or sale, negotiating with the tenant, the length of the property lease, and the anticipated return on investment from the property. 

However, the downside to owning 100% of a triple-net property is that you may not qualify to own a property within the suburban to an urban area(s) due to the price range of these types of properties. Typically, a down payment of 30-35% is required on a single tenant net lease property. 

The example that Joel mentions gives insight into what this type of property’s down payment requirement may be. He states, “If you have $500,000 and no more cash to add to the down payment, you may only be able to afford a property that is $1.5 million dollars, which could limit the quality of areas that you can purchase in”.

Conversely, when you invest in a syndicate with an experienced sponsor, you can invest in some value-add retail properties. When investing in a syndicate with a sponsor, this means that you’re investing into properties with a pool of other investors as well and will essentially own a smaller slice of a bigger property that you might not have been able to afford on your own. The property has the potential for more equity upside once the property has been stabilized.