We then arrive at defining what are the advantages associated with the purchase of a commercial property with income, or a property where there is already a lessee tenant.
The first point in favor, as you can imagine, is linked to the fact that you already have a basis on which to build your investment. In other words, the certainty of already having a rental contract and a secure monthly rent will allow you to proceed with the purchase with greater security.
Furthermore, if the purchased property is already leased, you will be able to immediately know the profitability and you will immediately know the future income deriving from the sale. The prolonged profitability of an income property is even more advantageous, because usually the businesses that occupy these premises stipulate long-term contracts for 6 years + six years, renewable house buyers Philadelphia.
Finally, the initially invested capital is almost certain to grow exponentially, despite the fixed costs (for example, those relating to the management of the IMU and any extraordinary maintenance) which weigh on the owner of the property and not on the tenant lessee.
What is preemption and why is it important
It should not be forgotten that the tenant of the property can oppose the sale of the property from one subject to another through pre- emption .
In fact, the owner of the already leased property can sell it to anyone, but be careful: this is only possible if the tenant – correctly informed of the sale – does not exercise the right of first refusal under the same conditions.
The right of pre-emption can be defined as the right granted to some subjects to be preferred to others, under equal conditions, when a subject is about to sell an asset.
Profitability is that rate of return returned as a percentage between the ratio of the rent received and the purchase cost of the property . To date, on the Milan market , we can speak of a good income when it settles on 6% upwards, bearing in mind, however, that the percentage normally decreases (goes lower) as one approaches the center of Milan and the tenant ‘s solvency (which could be evaluated in the form of: number of stores owned, whether managed or infranchise ; global uptime; corporate solidity; contractual constraints; guarantees: sureties, sureties and personal guarantees ).