Are bonds reliable investment instruments nowadays? Are there any alternatives that can bring more profit and look more beneficiary compared to bonds? Yes, income-producing assets are a great alternative to bonds, and one of the most advantageous income-producing assets is the Triple Net Lease Property.
What is a triple net lease property? A triple net lease property is an income-producing asset in which the lessee agrees to pay all operating expenses related to the property, including insurance, taxes, and maintenance. This type of lease agreement is attractive to investors because it offers a predictable and stable income stream.
There are many benefits of investing in triple net lease for sale over bonds. One of the main benefits is that you can generate income even if interest rates rise. With a triple net lease property, your income is not directly tied to the performance of the bond market. This makes triple net lease properties a great alternative to bonds.
Another benefit of investing in nnn properties for sale is that you have the potential to earn a higher return on investment than you would with a bond. With a triple net lease property, you are essentially buying an income-producing asset that can appreciate in value over time. This appreciation can provide you with a significant return on your investment.
Finally, another benefit of investing in triple net lease properties for sale is that you can diversify your portfolio. By investing in a variety of income-producing assets, you can mitigate the risk associated with any one particular investment. This diversification can lead to greater stability and potentially higher returns over time.
We recommend paying attention to three types of different asset classes.
Preferred Shares
Not many investors know how to benefit from preferred shares and what they are about. Here we will explore everything you need to know about preferred shares, and how you can use them in your investment strategy.
Preferred shares are a type of investment vehicle that is becoming increasingly popular among retail investors. Preferred shares offer many benefits, including high dividends, stability, and liquidity. Preferred shares are also a great way to diversify your portfolio and reduce your overall risk.
When it comes to preferred shares, there are two main types: convertible preferred shares and cumulative preferred shares. Convertible preferred shares can be converted into common stock at the shareholder’s option, while cumulative preferred shares have a higher dividend that accumulates if it is not paid in full during the year.
Investors typically invest in preferred shares through a mutual fund or exchange-traded fund (ETF). However, preferred shares can also be purchased directly from a company.
If you are looking for a high-yield investment with stability and liquidity, preferred shares may be the right choice for you.
Net Lease REITs
The next option is Real Estate Investment Trusts or REITs in short. A REIT is a corporation that finances, manages, or owns income-producing real estate. A Net Lease REIT is a type of REIT that leases space to tenants and requires them to pay not only rent, but also property taxes, insurance, and maintenance expenses.
Investing in Net Lease REITs can provide inflation protection and stable income as the rent coverage is typically high. In addition, many Net Lease REITs have long-term leases with creditworthy tenants, which further adds to the stability of this investment option.
But some REITs are riskier than others. For example, retail REITs are struggling right now as the pandemic has forced many stores to close. So, be sure to do your research before investing in any REIT. These blue-chip net lease companies represent some of the best in the business:
– Digital Realty Trust (DLR)
– W.P. Carey Inc. (WPC)
– STAG Industrial, Inc. (STAG)
– Government Properties Income Trust (GOV)
– Kimco Realty Corporation (KIM)
These are just a few examples of Net Lease REITs to consider investing in. Be sure to do your own research before making any investment decisions. And remember, always consult with a financial advisor to get tailored advice for your unique situation.
Crowdfunding and Lending Opportunities
Crowdfunding platforms are another opportunity to benefit. They are online platforms where people combine their capital to finance private real estate deals. The high waiting periods for bank financing make this an attractive option for some.
Crowdfunding platforms are a great way to get involved in private real estate deals. Some platforms offer customers to earn 9%-13% returns on short-term real estate-backed loans. By pooling your resources with other investors, you can access opportunities that might otherwise be out of reach. And because these platforms provide access to a wide range of projects, you can choose the ones that best fit your investment goals.
However, it’s important to remember that crowdfunding comes with its own risks. Before investing, be sure to do your due diligence and understand the terms of the deal. Also, keep in mind that most platforms require a minimum investment, so you’ll need to have some capital to get started. REITs have a better combination of interest between shareholders and management, and also offer far more convertible assets, while yet delivering market-leading revenue.
If you’re looking for a way to diversify your portfolio and get access to high-quality real estate deals, crowdfunding could be a good option for you. Just be sure to proceed with caution and do your research before investing.
Conclusion
While bonds have long been considered a safe investment, they may not be the best option for investors seeking income nowadays. In fact, bonds are currently offering negative real returns, which means that investors are losing purchasing power by holding them. Net lease REITs, crowdfunding, and preferred shares are two alternatives that can offer better income potential than bonds. Net lease REITs own properties and lease them to tenants, typically on a long-term basis. This provides a steady stream of income that can be attractive to income-seeking investors.