Investment

5 Types of Risk Every Real Estate Investor Should Know About

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The huge market in so-called triple-net leases, which are often said to be as safe as U.S. Treasury bonds and require tenants to pay taxes, insurance and improvements, can fool property investors. The more stability in a property’s income stream, the more investors are willing to pay because it behaves more like a bond with predictable income streams. However, the triple-net lease landlord is taking a risk that the tenant will stay in business for the length of the lease, and that there will be a waiting buyer. New construction may seem like a better bargain than a 30-year-old structure customized by a prior tenant.

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