It’s important to consider key insights when purchasing an investment property to ensure maximum returns and stability. Here are four insights to consider:

Insight 1: Invest in Emerging Markets

In saturated markets, finding good investment opportunities can be a challenge. Consider investing in emerging markets that have the potential for growth and development, which can potentially result in higher returns on investment than in saturated markets. Researching potential emerging markets, analyzing market trends, and diversifying your portfolio by investing in a mix of established and emerging markets are the first steps to take.

Insight 2: Look for Triple Net Leased Properties with Long-Term Leases

Short-term leases can result in decreased cash flow and decreased property value. Look for triple-net leased properties with long-term leases to provide stability and consistency in cash flow. Long-term leases provide a reliable source of income and can potentially increase the overall value of the property. Find long-term leases by researching the tenant’s financial stability and credit history before investing and negotiate lease renewals with tenants to extend the lease term. 

Insight 3: Invest in Properties with Multiple Tenants

Single-tenant triple net leased assets come with the risk of losing rental income if the tenant decides to vacate the property. Consider investing in properties with multiple tenants to diversify the income stream and reduce the risk of rental income loss. Investing in properties with multiple tenants can provide a more stable income stream and reduce the risk of vacancy. Investing in a property with multiple tenants starts with researching the financial stability and credit history of potential tenants before investing in properties with a mix of long-term and short-term leases to provide a diverse income stream.  

Insight 4: Explore Sale-Leaseback Opportunities

Owners may be hesitant to sell their property because they still want to use the property for their own business operations. In this scenario, owners may want to explore sale-leaseback opportunities, where the owner sells the property and then leases it back from the buyer. Sale-leaseback opportunities can provide owners with immediate cash flow while allowing them to continue operating their business from the property. Start exploring this option by researching potential buyers who are interested in sale-leaseback opportunities and their investment criteria and negotiating favorable lease terms to ensure the long-term viability of the business.

By following these key insights and working with an experienced broker, you can make informed decisions when purchasing an investment property that will result in stable cash flow and potential for growth and development