Buying properties on a net lease is a desirable option for both new and established investors. And, one of the best avenues to increase your wealth and achieve financial freedom is investing in bank owned properties for sale.
However, to ensure a steady stream of income for the long term, you should only invest in properties with reputable banking institutions as tenants. With that said, you should look for Chase Bank properties for sale.
About Chase Bank
Chase Bank is a leading global financial institution with $191.62 billion in assets as of September 30, 2016. The company has over 240,000 employees and operates more than 16,000 branches in 26 countries.
Typically, the bank’s locations consist of buildings of about 2,600 to 4,800 square feet in dimension, mostly sitting on approximately 0.65 to 1 acre of land. The company often holds ownership with unsubordinated ground leasing for upgrades but would choose corporate ownership when possible.
The company offers a standard 15 to 20-year leasing term with up to 4 renewals every 5 years for its properties. Depending on the size of the property, the price can range from as low as $200,000 to $9,500,000, with an average cap rate of 5.2%.
Why Buy Chase Bank Properties
There are many reasons to invest in Chase Bank properties for sale. The following are just some of them.
1. The bank is a reliable and creditworthy tenant.
Chase Bank has been in business for over 200 years and is not going anywhere. With attractive lease renewal options, you can be assured of steady income for many years to come. The bank is also very particular when it comes to choosing its properties, so you can be sure that the locations are desirable and will remain so for the duration of your lease.
2. The bank offers competitive rates and terms on its leases.
As previously mentioned, Chase Bank offers a standard 15 to 20-year lease term, with the tenant having the privilege to renew the contract every five years. Also, the company is willing to negotiate for longer lease terms if the property and location are desirable.
In addition, the bank generally charges lower rent rates than its competitors. For instance, in Los Angeles, California, Chase charged an average of $21.50 per square foot compared to Wells Fargo’s rate of $27.00 per square foot. This can save the tenant thousands of dollars in rent each year, making the property more attractive.
3. The bank is committed to providing excellent customer service.
The Chase Bank team is dedicated to ensuring that tenants have a good experience. This means that you can expect timely repairs and maintenance on the property, as well as a responsive customer service team if any issues arise.
Finding Chase Bank Properties for Sale
If you’re interested in investing in Chase Bank properties, there are a few ways to find them.
First, you can visit the Chase website and search for properties by state or zip code. The website will show you all of the available bank-owned properties within your area. You can also find bank property listings that are commissioned by the bank to put their properties on the market.
Alternatively, you can contact a real estate agent who will help you find properties that meet your specific criteria or consult with a commercial broker who specializes in net lease properties.
An important thing to keep in mind when investing in Chase Bank properties is that the company has a conservative underwriting process. This means that not all deals will get approved, so you’ll need to have a solid financial plan and be able to act quickly when a good opportunity arises.
Things to Keep in Mind When Buying Chase Bank Properties
Like investing in any type of real estate, there are important things to keep in mind when buying Chase Bank properties for sale.
Type of Net Lease
It’s important to understand the type of net lease you’re getting. During your research, you would find out that Chase Bank real estate for sale comes with different lease agreements. But again, the company is also willing to negotiate on their lease terms.
In addition, it’s important to know whether or not the bank will be responsible for repairs and maintenance on the property. But generally, you can generally expect timely repairs and maintenance with Chase Bank, as well as a responsive customer service team if any issues arise.
Financial Plan
You’ll need to have a solid financial plan in order to invest in Chase Bank properties. This allows you to be able to act quickly when a good opportunity arises and have the cash available to close on the property.
Location, Location, Location
It’s important to consider the location of the property you’re interested in. While the bank is choosy about its locations and only invests in properties that are desirable, it is still important to do some research on the market where they are located to ensure high profitability throughout the duration of the lease.
Cap Rate
When investing in Chase Bank Properties, it’s important to know the cap rate. This is the annual return on your investment, and Chase Bank typically offers a higher cap rate than its competitors.
To calculate the cap rate of a potential property, you can use this formula:
(Annual Rent – Annual Operating Expenses) / Purchase Price
For example, if a property has an annual rent of $100,000 and annual operating expenses of $15,000, the cap rate would be (100,000-15,000)/200,000 or 12%.
The Building’s Condition
Of course, you’ll also want to take the building’s condition into account when deciding whether or not to invest in a property. However, the bank only invests in properties that are in excellent condition, so you can generally expect a nice building with few (if any) repairs needed.
When investing in any Chase Bank property, it’s important to keep in mind the company’s conservative underwriting process as well as its focus on providing excellent customer service. The bank offers lower rent rates than its competitors and is committed to maintaining properties throughout their lease terms. By understanding these key factors, you can make sound decisions when investing in this type of real estate.
Conclusion
Investing in Chase Bank properties for sale is a great way to secure a steady income stream for years to come. With its reliable tenant, competitive lease rates, and commitment to customer service, the bank offers an attractive investment opportunity for both new and experienced investors.
So, if you’re looking for a safe and profitable investment option, Chase Bank should be at the top of your list.
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