Real estate investment is great for several reasons; you get to enjoy a high rate of returns most times, fantastic tax benefits, and it helps you build your wealth. If you started off investing in stocks before delving into real estate, you’d discover that buying properties offers better returns than purchasing bonds while also being less volatile.
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Furthermore, under real estate, your risk of running into losses is minimized by the amount of time you own the property. As such, you build equity when your property’s value increases due to a market appreciation. Conversely, stock market risks are consistent, and many factors can negatively affect your investment.
And the best part of real estate investment? You can leverage your property as a tangible asset to capitalize on various revenue streams while still enjoying capital appreciation.
Sounds terrific, right?
Unbelievably, there’s a commercial real estate sector that offers all these benefits without the burden of insurance, building maintenance, and property taxes called triple net lease investment.
Under this CRE sector, you can own O’Reilly’s real estate or even a Walgreens. That way, you increase your investment portfolio without having to worry about the maintenance of these properties.
The following are some of the reasons to invest in O’Reilly’s real estate.
- Minimal Management
One primary reason to buy an NNN auto sales, such as O’Reilly’s, is that it leaves the financial burden of property management to the tenant. Typically, a triple net lease requires little to no supervision from you as the investor.
Besides the rent, the tenant is liable for handling the property maintenance, insurance, and taxes. Thus, this absence of financial obligation and its simplicity make it beneficial for you while also providing a measure of control to your tenant.
Your tenant doesn’t need to wait for general property maintenance from you, who might have so many things on your hand.
- Reliable Tenants
Reliable, secure tenants choose triple net lease properties with a good understanding of the responsibilities it entails.
Tenants that prefer NNN lease properties include convenience stores, fast-food restaurants, mattress outlets, grocery stores, gas stations, and O’Reilly auto parts real estate.
Multi-tenant property renters prefer triple net leases due to the lower rents. So you wouldn’t have to look for tenants for your property.
However, due to the cost of taxes, maintenance, and property insurance on your renter’s shoulders, you’ll need to keep costs low.
Thus, your tenants help you offload your additional property expenses comfortably while you continue maintaining a steady and dependable income source.
- Stable Investments
The triple net lease predictability and stability makes it appealing for both you and your tenant. An NNN lease structure for O’Reilly’s auto parts company is known from the beginning. Therefore, the renter provides predictable accountability and sustainability for the property’s wellbeing.
Furthermore, triple net leases are long-term, helping to build quality relationships, and sometimes, there’s an option for renewal.
- Diversify Your Investment Portfolio
Triple net leases are vital components of an ideal investment portfolio. These property types are generally low-risk and deliver steady, passive income with no management needed.
This stable, long-term, but potentially lucrative asset allows you to attain an imperatively balanced dynamic. Also, getting a triple lease property gives an investor the ability to face other high-risk investments.
These NNN lease property attributes simplify the investment diversification process so that you can make money through multiple avenues.
- High Return on Investment
When you buy O’Reilly’s real estate, you’re sure of a high return on investment. It’s a given that the longer you own a real estate property, the more money it makes. The real estate market has always recovered from depreciation in the past, and property owners that held onto their investments in those periods are enjoying the price increase now.
Remember that triple net investment isn’t affected by fluctuating market prices, seeing as your tenants are there for the long term. So, you don’t have to worry about market depreciation.
- Tax Benefits
When you invest in an O’Reilly auto parts commercial, you get tax deductions on depreciation, cash flow from your investment, mortgage, amongst others. Take your time to conduct research on the type of tax benefits you’ll enjoy as an NNN investor.
- Land Appreciation
Besides the property itself, the land will probably grow in value too over the years. In some real estate markets, the land is worth more than the building standing on it, so, regardless of any plan you might have for the property, the land continues to appreciate.
- Predict Your Investment Cash Flow
Unlike other investments that hardly allow you to predict your cash flow, investing in O’Reilly’s real estate will enable you to calculate your cash flow, seeing as you likely have only one tenant and have set the rent.
As long as that property has a renter, your rent every month is guaranteed. And the best part is, you don’t have to worry about spending money on maintenance and repairs.
- Passive Income Source
One primary reason most commercial real estate investors prefer triple net properties like O’Reilly’s is that it’s a way for them to generate passive income.
Seeing as the investment requires little to no maintenance from you, you simply have to buy the property, find a credible tenant and collect your rent according to the lease agreement.
And most importantly, you get to raise your property price responsibly to cover inflation and earn passive income as long as the property is yours.
- Inflation Hedging
While inflation affects almost all investment types, real estate investment is often in demand. Thus, it generally maintains its economic power and serves as an inflation hedge. More so, you can easily pass the inflation cost to your tenants. Either way, you’re not directly affected by the current economic situation.
Buying a triple net lease is the best way to break into commercial real estate. Consider purchasing an O’Reilly property to diversify your investment portfolio. You’ll discover why it’s in your best interest to do this from the reasons mentioned above.
It’d be best to use an NNN deal finder so you can narrow down your search from other available options. Consider visiting the Buy NNN Properties website today to get the best deals.