This funding technique includes buying properties leased to 3 tenants below a web lease settlement. This implies tenants are accountable for property taxes, insurance coverage, and upkeep prices, simplifying possession for the investor. An instance can be a retail constructing with a espresso store, a cell phone retailer, and a dry cleaner, all working below long-term web leases.
The enchantment of this strategy lies in its potential for producing steady and predictable earnings streams. The diversification throughout three tenants mitigates danger in comparison with single-tenant properties. Moreover, the web lease construction reduces operational burdens and surprising bills. Traditionally, properties structured on this method have attracted traders looking for passive earnings and diminished administration tasks.
