southern MN | Excalibur - 1/1/2025 16:45
Ok, maybe I misunderstood. Your talking about the tenant making more net income than the investor per unit(acre, square foot, residence).
I think what you’re missing is most investors have to still pay for the investment. In a 20 year span, the land rent collected will never pay for the asset purchase. What the investor cares about is asset appreciation.
These days most land or buildings are rented on a per acre/ square foot per year contract. The owner has a known income with very little risk. Will the check be good is about the only risk?
The business operator renting the land/ building is in a fluid market of inputs and sales and volume that change daily with many outside their control market changers.
I can’t see where the land/ building owner has any type of risk vs the business operator?
Both need to make a profit for the business model to work.
The business operator appears to have much more risk any given day. Risk is supposed to be rewarded?
Paul |
Cash rent vs commercial properties
