Generally speaking, triple net tenants are highly rated, have great track records and are very dependable.Well I was thinking the other day about residential real estate, an area that I am passionate about for the past twenty years. One of the downsides of residential rental real estate is that you are always dealing with leaky toilets etc. Many real estate investors simply do not want that hassle day in and day out. While this idea does not answer, completely, the triple net issue, I think it is intriguing. By the way this idea will not work for everyone, but it will work for some.
If you have a good equity position in your residential property and you want to sell it, rather than sell the home in a down market with a buyer who is using a bank, why not sell the property on a land contract. The land contract instrument works like any other mortgage document from a bank. As long as the buyer has a good down payment this is an avenue that can generate some good (triple net) income for the current homeowner.
Have you ever really looked at an amortization schedule on a 30 year note? Do you realize that most of the payment for the first 5 years is almost all interest, very little principal reduction takes place.
Some folks look at this and conclude that it is not for them because they want all of their money at once. However if you evaluate this option you may decide that you are willing to receive installments over a several year period and actually make more money than you would by selling the house outright. I can show you how this works in detail, but I think this is a great idea, especially in our current market.
