A Guide to Dollar General Triple Net Lease Investments
Dollar General is the largest discount retailer in America. It has 10,000 stores across the country and employs 65,000 people. However, this isn’t all that Dollar General does–they also offer Triple Net Lease Investments for real estate investors.
Investing in a retail store can be a risky business. This is why many professionals are turning to triple net lease investments as an alternative form of investing their money into a property with less risk involved. To make sure you’re making good decisions when it comes to your investments, here are some things you need to know about Dollar General’s triple-net leases:
Dollar General Corporation
Dollar General was founded in 1939 and had been providing budget-conscious Americans with essential products ever since. The company offers a wide variety of items such as groceries, housewares, toys, general merchandise, and even jewelry, to name just a few. With over $30 billion dollars in revenue per year, Dollar General is the largest retailer of first necessity items in the country.
Dollar General has over Ten thousand locations across the country and is growing by over 1,000 stores per year. These stores are located in all fifty states where they employ more than sixty-five thousand people, which is equal to one store for every thirty-eight thousand Americans.
In 2015, Dollar General was voted by Forbes as one of America’s Best Employers and has been recognized for its good labor practices and robust working environment, among other things. The company is financially stable with a market cap of $20 billion dollars and a price-to-earnings ratio of 18.57X, which is relatively low compared to other retailers such as Wal-Mart and Target.
One of the most significant benefits for investors is Dollar General triple net lease investments. Aside from being an investment-grade company, is the fact that they have a relatively low debt to equity ratio, which means that even if the company were to have a hard time financially, they can continue to uphold their lease obligations.
Dollar General Triple Net Lease
Investors are always looking for the next best deal. They want to find an investment that will give them a great return on their money and preserve their capital investment. While lenders have money to lend and are more accessible than ever before, investors still need something worthwhile to invest. This is why Dollar General Triple Net Leases (NNN) investments are becoming such a popular investment choice. Relatively low cost as related to other real estate investments and Investment Grade Credit.
NNN lease investments have been a mainstay in real estate for many years now. Investors who wish to purchase an investment property seek a steady cash flow every month and the potential for growth over time.
Dollar General leases are an excellent way to invest in the retail market without running the store. Dollar General net leases have a corporate guarantee, and new stores are triple net leases with 15-year initial terms backed by the Dollar General Corporation and not some small franchisee.
Use a Qualified Triple Net Lease Broker
Investors need to find a great tenant and a great location. For example, they might go out and purchase an existing property that has already been improved or renovated. Then it is just a matter of improving some other aspect like appearance, signage and the like to make the property even more attractive to consumers. These properties are already renovated and the tenant is in place paying rent from Day One. This is why these types of investments are so popular among investors who want the potential for a great return on their money and don’t want to take much risk during the term of ownership.
Dollar General Properties Offer Stable Growth in Any Economy
Dollar General is the perfect place for new CRE investors and those performing a 1031 exchange. Their NNN investments typically sell between $1-$2 million, which makes them a low barrier to entry into this market and easy financing with no landlord responsibility!
One of the most important aspects to consider when investing in real estate is diversification of location. That’s why our experienced CRE investors own properties across different areas, including urban neighborhoods and rural communities – which creates crucial diversification for any portfolio!
Are Dollar Properties Financeable?
There are many factors that go into NNN investment financing options and down-payment requirements. First, a case by case based on your portfolio as well the creditworthiness of tenant or property location.
The pros and cons of Dollar General properties are often weighed before investing in one. The down-payment requirements, financing options, lease length—all these factors play into whether or not you should consider purchasing an already leased property with debt on your own behalf!
Dollar General Triple Net Leases are a great investment for qualified buyers that are looking to be rewarded with stability and growth in any economy. This type of triple net lease investment provide investors with all kinds of benefits, making them an excellent choice for both new CRE investors as well as those performing a 1031 exchange. One of the most important aspects to consider when investing in real estate is diversification of location which creates crucial diversification no matter what your portfolio looks like!