Many real estate investors are on the hunt for net-lease properties for a variety of reasons. One such reason is because they can provide a source of passive income for a period of time, without the need to handle (or pay for) the administrative aspects of property ownership.
When buying or selling a net lease property, it’s a good idea to find a net lease advisor to help. But googling “net lease advisor” yields a lot of companies that are involved with this type of activity. As such, there are steps to follow when seeking out a net lease advisor.
Net Lease Advisor versus CRE Broker
Both net lease advisors and commercial brokers or agents are on hand to represent you when it comes to buying or selling a real estate asset used for trade or investment. But there are differences between these two professionals.
Commercial Real Estate Broker
A commercial real estate broker buys, sells, leases, or rents non-residential properties on behalf of investors. They typically know a lot about tax and zoning laws, as well as issues about geography and markets, financial analysis, property management, and other information.
Many of these brokers have specialties, such as office, retail, residential, or industry. There are also net lease brokers.
Net Lease Advisor
The net lease advisor is an individual with extensive experience in net lease properties, with knowledge about how to successfully guide investors to the right asset. As such, the net lease advisor goes beyond representing you during the buy/sell/closing process to offer the following services:
- Property evaluations, such as what a property is worth or profit potential
- Advice and recommendations, including trends involved with certain markets and types of net lease properties
- Portfolio analysis, during which the advisor will study your investment portfolio to help determine the properties that can meet your specific goals
- Due diligence, to help ensure that the target property has a reasonable cap rate and price, and that the lease doesn’t have any hidden clauses
- Client risk tolerance, evaluation, and exit plan guidance
In many cases, the net lease advisor will be your “go-to” person for an ongoing net lease acquisition/disposition strategy. While many commercial real estate brokers can be net lease advisors, not all are. The broker’s goal is to get you to the closing table. The net lease advisor’s goal is to also help ensure that the investment selected is the right one for your goals and objectives.
Finding a Net Lease Advisor
Similar to how you conduct due diligence on any real estate you’re interested in buying, you should conduct due diligence on your net lease advisor. Here are some things to consider.
Track Record
The advisor you’re considering should have a record of success and be willing to share details on deals closed, potential challenges overcome, and investors they’ve assisted. It’s also a good idea to ask for references from this advisor. If the advisor is hesitant to share this information with you, move on.
Industry Experience
Net lease properties can differ from other commercial properties, and it’s essential that the advisor you select knows the industry. That individual should be able to understand and provide market insights, property values, profitability, lease structures, locations, and other factors.
Fit
The net lease advisor you select should be a good fit with you, based on your goals, objectives, and personality. This will be a long-term relationship, so you want to be sure that you trust this individual to do the best for you.
The net lease industry is not an easy one to navigate. A qualified net lease advisor can help you with the ins and outs of buying and selling such assets, while also working with you to get the most that you can out of a net lease investment.
This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice, meeting the particular investment needs of any investor. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation.
