This funding technique includes buying properties leased to a few tenants below a web lease settlement. This implies tenants are liable 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 method lies in its potential for producing steady and predictable revenue streams. The diversification throughout three tenants mitigates threat 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 buyers in search of passive revenue and decreased administration tasks.
