TD Bank is one of the most active banks in the US that can easily be found on the New York Stock Exchange under the stock symbol TD. With recognized credit strength, stable financing solutions, and attractive triple net lease (NNN) terms, their properties are seen as a solid opportunity for investors looking to build wealth and achieve financial freedom through real estate.
TD Bank real estate selections are ideally situated in rural and urban locations, consisting of 3,500-4,800 square foot structures sitting on 1-1.5 acres of land. And, they are usually sold as unsubordinated ground leases.
TD Bank: About the Company
As a constituent of the TD Bank Financial Group of Toronto, TD Bank is one of the leading banks in North America and one of the biggest banking institutions in the US, with a reputation of being referred to as “America’s most convenient bank”.
Aside from banking services, the company also offers a wide range of business and consumer-based financial services, including insurance and wealth management. In fact, they are also deemed as one of the biggest insurers in the country’s regional markets.
Today, the company already has more than 1,000 retail branch locations in the US, serving around 6.5 million customers.
Now, if you are looking for a lucrative avenue to make good money in the property market, you should look into TD Bank real estate across the country.
Why Invest in TD Bank NNN Properties
When you buy TD Bank real estate for sale, you will enjoy all the perks of investing in NNN properties.
For starters, you can expect a stable stream of passive income for the long term. Understanding the desirability for this type of investment, TD Bank typically offers primary terms that range from 15 to 20 years, with 5-year options to renew, which is relatively longer than other standard lease terms, which are usually only up to 15 years.
Aside from that, there will be fewer responsibilities on your part as owner, as the tenant will be one to handle most of the tasks of running the property and most of the associated expenses.
Generally speaking, here are the benefits of investing in TD Bank NNN properties:
- Long-term passive income
- Minimal landlord responsibilities
- Desirable real estate
- Highly visible locations
- 10% to 15% rental increases every 5 years
- Creditworthy tenant
- NNN absolute terms
TD Bank NNN Property Investment Requirements
As with investing in most NNN opportunities, buying NNN TD Bank properties will entail a set of requirements for investors.
As a standard, you must be accredited with a net worth of at least $1,000,000, excluding the value of your primary residence or $200,000 in your annual income.
Of course, you need to have the financial resources to procure the property, which you can find on your own or with the help of the company. Typically, TD properties would cost around $400,000 for a small location to around $8,500,000 for a huge location.
Aside from sorting out your finances, you would also be required to undergo some training to make yourself familiar with the business. This ensures you have an idea of how it should be operated.
Lastly, you and the seller will need to sign a contract to seal the deal. Before signing on the dotted line, though, review it carefully to ensure everything in your agreement is in place.
4 Important Factors to Evaluate When Buying an NNN Property
While TD Bank NNN properties are generally great investments to make, you would want to find the best property that gives you value for money and generates the highest returns. Here are some important factors to consider.
Financial Capacity
The location that you could purchase would depend on your current financial capacity. So, before you start looking for TD Bank properties, take the time to evaluate your finances first. This way, you will have a price range for the potential locations you should look for.
You can also find properties offered at cheaper prices by looking into the TD Bank foreclosures listing.
Location
While TD Bank properties are situated in good locations, you still need to do some checking on the property you are buying.
For example, is it highly accessible from the road? One with easy access will make it more convenient for clients to get into the establishment. Or, which types of businesses are operating nearby? Anchor establishments would help bring in more business for the tenant.
Cap Rate
In the world of NNN investing, the higher the cap rate is, the better it is for the buyer. In a way, it means you are paying less for the property while expecting quicker returns on investment. So, when looking for TD real estate opportunities, try to find those with the highest cap rates.
As for TD Bank NNN properties, their average cap rate ranges from 4% to 4.5%, making them a good real estate investment option to consider.
To calculate the cap rate of a potential property, though, you can use the formula below:
Cap Rate = Net Operating Income / Purchase Price
Compliance
It is important that the location you choose does not have any structural or environmental issues, as these things will surely affect your bottom line down the road. Even the smallest of problems could ruin your investment in a significant way.
If you are new to NNN investing, it might be quite challenging to assess available properties. To come up with a wise decision, it would help to seek the guidance of an NNN advisor who has in-depth knowledge of the area and market you are interested in.
Conclusion
Without a doubt, TD Bank real estate is one of the most attractive choices for stable and long-term NNN investments. In a sense, it offers investors, like you, a predictable cash flow with less risk and more rewards.
However, it is important to remember that not all NNN opportunities provide the same business potential. So, you should still do your due diligence in finding a property that perfectly suits your needs. Do your research, take the necessary steps in assessing potential locations, and seek expert advice, and you will be good on your way to purchasing a TD property that helps you achieve the financial freedom that you have been longing for.
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