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Factors To Consider in Real Estate Investment There is always a way to make more money through investment. An investment refers to an asset acquired or money put into a project that is sure to bring in more money than was injected. There are several forms of investments and the type you settle on is greatly influenced by how fast you need returns or how much returns you would want because each investment type is different in terms of how first it appreciates and by what percentage. Triple net Investment is one of the investments that exist, real estate investment to be exact. It is a kind of real estate investment where the owner leases out their property to a tenant that has a good credit record for a relatively long time of around 12 to 25 years. The wrong choice during investment could put you very low on the financial scale. Thus, a few issues need to be looked into to avoid loss due poor investment choices. The factors to consider include the contract clarity, property location, credit worthiness of the tenant and the nature of the lease. Evaluating the location of the land is one of the most necessary steps towards making a worthy investment. Location the evaluation aims to find a property in a zone that will be lucrative. Signs that show the land is bound to appreciate or is marketable already is infrastructural development in the area like electricity, roads, and water. A property in a well-maintained state is bound to save you the repair cost and fetch a good lease value.
Investing Tips for The Average Joe
Of great importance is the evaluation of the credit worthiness of a tenant so as to establish whether they are in a position to lease. You will avoid conflict in lease payment when you get a customer with a clean credit record. Having a tenant who is defaulter could mar the duration of the lease with law suits and antagonism that may make the contract costlier than it ought to be.
Investing Tips for The Average Joe
The contract also ought to be clear to both you and the tenant, so this is where a lawyer comes in. An attorney will help put legal language into layman’s terms and make sure there are no loopholes that a tenant can exploit in future. It is also important that the terms of contract termination be well stated. The type of lease you want should be clear to you. The leases available include bond lease, modified net lease triple net lease and even gross lease and each has unique traits. These discussed factors when considered leave little room for error.