This investment strategy involves acquiring properties leased to three tenants under a net lease agreement. This means tenants are responsible for property taxes, insurance, and maintenance costs, simplifying ownership for the investor. An example would be a retail building with a coffee shop, a mobile phone store, and a dry cleaner, all operating under long-term net leases.
The appeal of this approach lies in its potential for generating stable and predictable income streams. The diversification across three tenants mitigates risk compared to single-tenant properties. Furthermore, the net lease structure reduces operational burdens and unexpected expenses. Historically, properties structured in this manner have attracted investors seeking passive income and reduced management responsibilities.
