O’Reilly Auto is a well-known auto-parts dealer in the United States which has been offering quality automotive aftermarket parts, equipment, and other accessories for decades. Beside auto parts, this company also offers long-term desirable net lease investments.
O’Reilly employs a dual-market strategy, offering services to both “Do It Yourself” (DIY) individuals and “Do It for Me” (DIFM) professional service providers. This company continues to be an attractive site for investors thanks to its unique dual market strategy and robust distribution network.
Want to know more about O’Reilly auto parts building for sale? Read on to the end!
About O’Reilly Auto Parts
O’Reilly Auto Parts, which originally started as an individual store in 1957, now has over 5000 stores across 47 states in America. O’Reilly Auto Parts is one of the most well-known stores in the United States,that offers interested investors with good real estate for sale in key business areas.
This company is also involved in the leasing of real estate properties. O’Reilly Auto Parts triple net leases are a top-choice for investors because they are long-term and come with a rent increase option and five-year renewal option. Furthermore, this company offers primary real estates that are guaranteed to last for 20 years..
Furthermore, you can find O’Reilly auto parts NNN for sale in a number of states, including Alaska, Arizona, Colorado, California, Florida, New Jersey, and other states.
How Does Triple Net Leases Work
These types of leases aim to protect the client by helping to minimize the risk associated with commercial leases. It’s a type of rental lease that requires tenants to cover additional expenses. These extra expenses cover insurance premiums, property taxes, and the cost of property maintenance. Due to these expenses, tenants generally pay a lower rent amount.
In this type of lease option, the tenant is responsible for all property expenses for the duration of the lease. Most tenants who sign this type of lease try to negotiate rent cuts or terminate the agreement when there is an increase in maintenance costs. To avoid this situation, most landlords present their tenants with a bondable net lease agreement before moving in.
A bondable net lease is a type of triple net lease agreement that can’t be terminated before the lease’s due date.
Why Invest With O’Reilly’s Auto Parts Real Estate
Consistent income, higher return rates, and tax benefits are some of what investing in real estate has to offer. In case you have seen an O’Reilly’s commercial saying “O’Reilly auto parts building for sale,” and you are not sure why you should choose this company, here are four reasons why:
● Reliable Tenants
Investing in real estate is a great way to build wealth. However, one important factor that affects your income flow is your tenants. Tenants can either give you value for your property or make you suffer huge losses.
Note that people won’t manage your property as well as you would, and a tenant with a history of bad management will only cause you much repair costs. One benefit of investing in this type of lease option is that you don’t have to worry about bad tenants.
A large percentage of people who sign triple net lease agreements make good tenants because they understand the responsibilities that come with the agreement. Furthermore, the tenants take care of any additional property expenses, and all you have to do is focus on maintaining your steady income source.
Tenants that choose NNN lease properties for sale include coffee shops, restaurants, grocery stores, gas stations, convenience stores, mattress outlets, etcetera.
● Reliable Source of Income
Suppose you won’t have much time to be actively involved with your rental investment. In that case, O’Reilly’s triple lease agreement offers you a convenient and safe way to generate passive income through corporate real estate investment.
Furthermore, with this type of lease, you will have more stability and will be able to predict what will happen to your property next. Another benefit of this lease is that both parties (you and your tenant) are aware of the rules from the start, making property management and accountability easier.
● Land Appreciation and High Return on Investment
Another benefit of investing in real estate is that your property is more likely to increase in value as the year goes by. Even if you don’t have special plans for the land, it will keep appreciating irrespective.
Furthermore, investing in O’Reilly properties ensures a higher return on investment. What’s more, you won’t have to worry about market fluctuations because triple-net leases aren’t affected by that, and your tenants are present for longer. The longer you own the property, the more money you make.
● Minimal Management
Another important factor to note is that you don’t have to worry about property management costs as long as you still have a lease contract with your tenant. No one is going to call you to fix a broken door, pay light bills, pay taxes, and even insurance.
Factors to Consider When Choosing a Tenant
Although most tenants you’ll come across are reliable, it’s best you still do some homework on who is taking your property. Here are three factors to consider when choosing a tenant:
1. Credit Ratings
The credit score of your potential tenant is the first and most important factor to consider before entering a lease agreement. If you want a reliable tenant, go for someone with a credit score of over 700 points.
2. Business Outlook
Always take the time to access the business outlook of the tenant. If the tenant isn’t in line with market trends or isn’t having a good business in mind that will help them become a force to be reckoned with, it’s best to move on to the next interested party.
3. Strong Financial Balance Sheet
Because this type of lease agreement is long-term, it’s essential to regularly review the company’s financial records, even after you’ve signed a lease agreement. This action gives you a good idea about whether or not your tenant will be able to keep up with the rent.
Conclusion
O’Reilly Auto Parts price and buildings have grown over the years, and this company assures you value for your money. When searching auto parts buildings for sale, remember that this lease agreement is long-term and comes with other investment benefits such as higher return rates and tax benefits.
Furthermore, before you venture into triple net leases, it is important to understand how this market works. As long as you are armed with specifics, you can invest fully into this market and make a consistent cash flow.
