Commercial property rentals wit triple-net leases mean little management and high returns. However, this can be a tough market to break into, and you can have negative cash flow on vacant storefronts for a year at a time.
How about a real estate investment in which the renter pays not only the rent, but the taxes and insurance, and maintenance costs as well? That is the idea behind the “triple net lease.” It is common in commercial real estate.
Many companies make too much money on their products to have their capital tied up in a building or real estate. For example, if a retailer can turn over $500,000 worth of inventory six times per year, making 10% profit each time, they make $300,000, or 60% on that capital. It wouldn’t make sense to have that $500,000 invested in a building. This is why they rent. In fact, many large retailers will buy real estate, build their store, and then sell it to an investor who leases it back to them. » Read more: Make Money With Commercial Property Rentals