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In the world of triple net lease investing, some of the most creditworthy tenants are those engaged in the financial services industry. So, if you want to start building wealth in this area of real estate, you might want to look into buying SunTrust real estate for sale.
After pulling through a previous recessionary period, SunTrust has been fulfilling growth initiatives and portfolio enhancements. They have taken some careful steps to significantly improve their creditworthiness and achieve greater stability.
Who Is SunTrust
SunTrust is an American bank holding company that offers a range of financial services, including financial management, asset management, securities, mortgage servicing, and investments. Considered as one of the largest financial service companies in the US, they are passionate about helping individuals and businesses achieve better financial well-being.
With their central subsidiary, SunTrust Bank, they run their operations via three divisions, which are mortgage banking, private wealth management, and wholesaling.
Today, there are already more than 1,500 SunTrust bank owned properties in prime locations across the country, mostly in the South-Eastern states, and some are available for purchase on attractive lease terms.
Why Invest in SunTrust NNN Properties
There are a number of reasons why you should invest in SunTrust triple net lease (NNN) properties. Aside from the fact that owning NNN properties requires only minimal responsibilities on your part, having such a tenant will assure you of excellent passive income for the long term.
Here are the advantages of buying a SunTrust NNN property:
- Attractive locations that are nearby anchor establishments, such as groceries
- Investor-grade tenant
- Rent increases per year
- Fee simple ownership
- Allowance for depreciation
Buying SunTrust NNN Properties: Important Factors to Consider
While buying SunTrust real estate for sale is generally a good investment decision to make, still you need to take proper measures to ensure you are purchasing the best asset for yourself. Here are important aspects to keep in mind.
Location
First and foremost, the property that you buy should be situated in a good location. This is crucial for the profitability and sustainability of the tenant.
So, when assessing a location, check if it has good access to the road. It should also be highly visible to people who are walking or driving by. Better yet, it should have a parking space of its own.
Cap Rate
Another important aspect to look into when buying an NNN property is its capitalization rate or cap rate. Ideally, you should find a property with a high cap rate. As a buyer, this means you will be paying less for the property. Also, it means that it will be quicker for you to get your return on investment.
SunTrust NNN properties are known to have an average cap rate of 5.72%.
Lease Term
Remember that you are buying the property to generate income from its rent. So, if you are engaging in a lease term that is short, your income stream will be short too. Not only that, but you need to spend a certain amount of money to lease the property out again by the time the term ends.
So, when buying an NNN property, you should look for one that still has a full lease term.
Compliance
Of course, you should ensure that there are no compliance issues in the property that you are buying, as one small problem could ruin your entire investment. So, during your negotiations, make sure that you are receiving a good title to the property and that it is free from any environmental issues.
During this step, it would be best to tap on the services of a real estate lawyer.
Responsibilities in Owning an NNN Property
Investing in SunTrust commercial real estate for sale does not end after the purchase. Depending on the lease structure, there are things that you are responsible for as the landlord.
Basically, this type of lease heavily favors landlords, as the tenant will be the one to shoulder most of the expenses of operating the property. However, there are costs that you will be responsible for, such as mortgage and structural maintenance.
Typically, you or a property management company will be the one to oversee the maintenance of the common areas of the property. Aside from this, you could also be the one to pay for some insurance. So, before you finalize the deal, you should identify the insurance policies that the property and the business need and determine which ones should be paid by the tenant and the landlord, separately.
If you are new to NNN investing, it would be best for you to seek out the guidance of an NNN advisor.
How Can an NNN Advisor Help
Hiring an NNN advisor will not only ensure that you are buying the best property available in a certain location, but will also ensure it fits your lifestyle and financial goals. In a way, this step is necessary to reach a solid investment.
Of course, there are properties that seem like a perfect fit for your requirements, but an expert advisor will serve as another pair of keen eyes to uncover certain reasons why they are not the best option for you and guide you to finding other properties that better suit your goals.
With the right skills, knowledge, and tools, these professionals can provide you with in-depth market knowledge, determine cap rates, find suitable financing solutions, help structure the deal, negotiate on your behalf, and avoid costly mistakes along the way. Beyond the cost savings and the streamlined investment process, the perks that these advisors bring to the table ultimately lead to higher returns on investment.
At the end of the day, NNN advisors will help you acquire the right property that is well-structured to suit your financial and lifestyle goals.
Conclusion
By all means, investing in SunTrust real estate for saleis one of the easiest ways to build wealth and attain the financial stability that you are longing for. But while you are dealing with a creditworthy tenant, there are steps that you should still do on your part to ensure the sustainability of your business.
For more tips and information about business and real estate, feel free to check out the other articles on our site!
