Single Tenant Net Leased Properties:Imagine a Billion Dollar Company Paying You Every Month For 20 Years

Single Tenant Net Leased Properties:Imagine a Billion Dollar Company Paying You Every Month For 20 Years

Single tenant net leased properties with credit tenants offer an investment that has real estate as collateral and a lease guarantee from a multi billion dollar company. The properties are vital to the operations of these billion dollar companies. If chosen carefully an investor will not have to worry about daily fluctuations in the market. An investor with a prime property leased to a company like Walgreens. CVS, Bank of America or McDonalds can expect to receive a regular rent payment each month for 20 years or more. These companies like to manage all aspects of their business and sometimes take care of maintenance, insurance, and taxes leaving the investor with little or no management.

Single tenant net leased properties can offer a solution for people who are retired and find themselves with a great deal of cash paying poor returns in the money market. A retired investor with cash in the bank really needs cash flow. Investors like Warren Buffet have been successful because they invested in businesses that created a lot of free cash flow. They then used that cash flow to invest wisely in other successful investments. They key was having regular cash flow to maintain a steady investment course when market conditions were fluctuating.

What do you do when you have a substantial amount of cash and it provides you with little financial rewards? It can be unsettling for retired investors to begin living on principal when they know that even though they are healthy they won't ever be working again. I saw a wealthy retiree at a bank the other day that was holding back the tears. He had a long term CD mature and the rate offered on certificates of deposit was a fraction of the rate he had been living off of comfortably. This investor had relied on the security provided by the certificate of deposit and was willing to invest at a lower return in exchange for the security. These low returns on certificates of deposit will most certainly be exceeded by the rate of inflation on commodities and gasoline over the next several years.

If an investor is looking to use leverage to purchase one of these properties there are plenty of lending sources available. Using conservative leverage an investor can receive a reliable stream of income for many years. A self amortizing loan can pay off the property over the initial lease term. This will give the retired investor a property that is free and clear of debt at the end of the lease. If they exercise options to renew then the investor's returns increase substantially.

Single tenant net leased properties with credit tenants can offer retirees steady cash flow guaranteed by a multi billion dollar company with little or no management. You also own the property fee simple and whether you invest alone or with partners you have full control of your assets.

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