This funding technique entails buying properties leased to 3 tenants beneath 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 beneath long-term web leases.
The attraction 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 sudden bills. Traditionally, properties structured on this method have attracted buyers in search of passive earnings and lowered administration tasks.