Two types of real estate

Real estate is divided into two categories; residential and commercial real estate. Residential real estate, of course, relates to habitable real estate like houses and apartments. Commercial real estate is the property that has some potential to generate income for the owner. This is includes office buildings, apartment units, factories, retail properties and raw land.

List commerical properties here

Invest in commercial investment properties near high traffic areas

Commercial investment properties are commercial properties bought as an investment. Nowadays, many people are investing in commercial investment properties, for the returns it provides. When investing in commercial investment property, it is better to choose the property from an area that has a great future. It should be land that can be used efficiently; and preferably near high traffic areas so that the property can be used as restaurants, stores, theaters, shopping malls, etc.

Types of commercial net leases

It is always better to let out commercial investment properties on commercial net leases like NNN or NN leases. In the triple net lease (NNN) investment, the tenant is responsible for paying all property taxes, internal and external maintenance costs, insurance and of course, the rent. These properties are usually lent to a single tenant for a long term of 10 to 15 years. This form of investment is beneficial to both the tenant and the owner as the owner has no involvement in the running and maintaining of the property. He is only the recipient of the monthly rent that can be increased according to inflation. On the other hand, the tenant has the advantage of running a business in a rented property, while having the feeling of ownership. He is responsible for all maintenance of the property, and is entitled to make any changes to the property, according to the terms of the agreement.

Search commerical net leases

Read the terms of the lease agreement before signing

There are other forms of N, NN, NN and NNN bond lease. However, to actually know what expenses is to be borne by the tenant will be by reading the lines of the lease carefully before buying the property! Some terms of the leases may be beneficial to the owner, some to the tenants, and some to both of them!