It’s 2021, and NNN investments are going through the roof. Why? More and more people have come to realize the positive returns associated with this real estate firm. So, if you’re looking to make a dose of passive income, investing in NNN properties close to you might be enough to bring that vision into reality.
Should McDonald’s for sale be considered for an NNN set-up? Amongst newbie investors, this is a recurring question as most of them like to know what’s in this property that’s different from others. That said, these kinds of properties are crucial “must-haves” if you’d like to kickstart your NNN journey on the right foot.
Although grocery and convenience stores are increasingly popular amongst NNN structures, fast food outlets such as McDonald’s have gained traction since inception. Guess what? Even the pandemic couldn’t mark a halt to proceedings.
According to a recent study, Americans spend, on average, a whopping sum of $1,200 each year. Also, American families spend a minimum of 10% of their income on fast food outlets. These numbers are 2020 numbers, and at the end of 2021, we’re expecting an increase.
With all these astronomic numbers in view, it’s no surprise why investors are rushing these property types. Fortunately, you aren’t late to the party, and you can still eke out a decent ROI if you’re willing to acquire a McDonald’s for sale today.
In the following lines, we’ll be giving pointers towards the inner workings of an NNN lease, the benefits of investing in a fast-food NNN, and what you should look out for before making that investment decision. Interesting times ahead? All signs point to that. Without further “back and forths,” let’s head right in!
Triple net leases, popularly known as NNN leases, can be defined as a lease structure associated with the commercial real estate market. Here, tenants have to foot expenses and other charges that arise on that property, in addition to rent.
What expenses are predominant in an NNN lease? They can include taxes, maintenance fees that stem due to repairs, and insurance.
Landlords are classified as “Kings” in this lease form since every fee, including rent (monthly or annually), comes to them. In the US today, this system has received quite a following amongst businesses and industries. However, it’s still a thing in the retail property scene.
So are you thinking of getting a McDonald’s NNN for sale anytime soon? While the prospect might seem exciting at first, doing due diligence is how you can maximize your NNN’s potential.
Whether it centers on real estate or not, investments of any kind aren’t 100% certain as several factors can either accelerate or hinder their progress. So, while you might have sufficient cash at hand to buy a McDonald’s for sale, picking the right property isn’t as easy as it sounds.
But guess what? We’ve done our research and have decided to share our results with you. Consequently, before you invest in a fast-food NNN like McDonald’s, ensure that you’ve placed the following segments into perspective. They are:
How long is your NNN property going to last and make the right dividends? The answer to this nagging question lies with the location. The “Primus Inter Pares” of all other considerations, location matters and should never be relegated to the back burner.
With this in mind, seek out a McDonald’s NNN lease property in a region that’s highly populated. Ensure that there’s a steady increase in this demographic each year.
That said, while highly populated areas are favored, it’s essential to have an NNN property in a place where there’s high traffic.
If you purchase in these areas, prospective tenants will flock to your NNN with different leasing proposals since they’re aware of the untapped business potential inherent.
The mistake most investors make is going into a market without insight into its inner workings. Relying on their gut feelings and the success amassed by other individuals, their investments tend to go up in flames within a short period.
Therefore, you shouldn’t be spontaneous in your investment decision. Set some time aside and have a foundation for fast food NNN structures, trends, and what’s obtainable at established venues.
When you’ve done this, you can now head into this industry with your head held high. If you’re finding this aspect confusing for some reason, you can always rely on the services of a net lease advisor to explain things in-depth.
When you’ve finally settled for a McDonald’s for sale, and you’re ready to go through with a purchase, you’ll have to sign an agreement or contract.
With so many caveats attached to contracts, you’ll have to go through each provision carefully. If you’re finding an aspect challenging to understand, speak up and seek clarification.
That said, if you’d like to avoid the likelihood of scams (sometimes, sellers might inflate prices to suit their endeavors), hire a legal luminary that’s vast in property law. This way, you’re sure that you’ve acquired a property that’s 100% legal and meets all your requirements.
As expected, there’s a “silver lining” attached to fast food NNN buildings. Although you’re going to foot the McDonald’s franchise cost, here are some positives attached to being a landlord:
- Reduced responsibility. Here, your tenants are in charge of the property.
- Steady passive income through rent collection.
- Reliable, long-term tenancy of up to 25 years.
- Risks are reduced to the barest minimum since lessees are responsible for management.
There’s no right time for making investments. However, if you’d like to engage the NNN property industry in the US, fast food structures, just like McDonald’s, are the way to go.
As a landlord, the benefits are enormous, and it isn’t a no-brainer why this investment form is favored amongst seasoned investors.
If you need an NNN property just like McDonald’s, head to buynnnproperties and get a property that’s worth the buy-in 2021. It’ll be best to hurry as the clock’s ticking!