In today’s risk-laden market, it is crucial to diversify your investment portfolio. This is also one of the reasons why investors place their money on triple net (NNN) leases, such as Napa Auto Parts stores for sale.
Cars are everywhere and while not everyone can afford a new car every year, the need for car parts for upgrades and maintenance is constantly in demand. This is a type of investment that is stable, flexible and generates a steady income for the long term.
If you are looking for a surefire profitable business that generates passive income, investing in Napa Auto Parts stores for sale is a smart move.
Why You Should Invest in Napa Auto Parts Franchises
As an American retailer, NAPA distributes car accessories, replacement parts and service items all over North America. It caters best to car service professionals, drivers and do-it-yourself enthusiasts and has more than 58 distribution centres. They also have more than 6000 independently-owned and company-owned stores, making it the best choice for a triple net (NNN) lease.
Here are top reasons to invest in auto parts franchises:
They are always in demand
Vehicles are everywhere and people need their cars to take them from one place to another. An auto parts franchise or business is always a necessity, even in a more challenging economic climate. When people are experiencing hard financial times, they will not buy a new vehicle. However, if something does go wrong with the vehicle they have, they need to repair it.
They have good location options
Since there is a strong demand for auto parts and repair, you can find them in multiple locations. Customers can simply log online and search for “auto parts store near me”, Google will give you a list of auto parts stores within your area. There is no specific geographical limit when you put up a car repair or auto parts store business. That is why if you have a certain area in mind, it will thrive.
Lots of opportunities for growth and change in the future.
Every year, lots of new cars are available on the market. This means that auto parts stores need to update their inventory regularly. But even those who own older vehicles still need to adapt to modern technologies. They will visit auto parts stores to find the right auto part for their upgrades. This gives you an idea that this type of investment is reliable, future-proof and can continue to evolve with the market. As luxury car brands such as BMW continue to grow in popularity, opening an auto parts store that caters to high-end car parts such as BMW emblem and other luxury car components could provide an even greater opportunity for growth in the market.
Factors To Consider When Investing in Auto Parts Franchise
Before deciding whether investing in Napa Auto Parts stores for sale is the right choice or not, take a look at these factors:
Leave the rest to experts
Not everyone has the time or experience in managing properties. That is why property managers are there to help you out. They help bridge the gap between you and your tenant and help you establish good communication. Be proactive and work with experts to set you ahead of your competition.
You have to be realistic about your time
You don’t have time to do everything. That is why investing in Napa Auto Parts stores for sale is something you should do when you have spare time. You won’t have to worry about property maintenance, real estate taxes and building insurance because these concerns fall on the shoulders of your tenants.
Check your financing capability
Just like any other investment, you need to have an initial capital. When it comes to triple net leases, having a net worth of at least $1M is important on top of the value of your primary residence. If you don’t have such an amount, an annual income of $200,000 is sufficient. Understanding the risk and rewards of this type of investment is important. It’s not just your financial capacity that matters but having the capacity to finance your investment is equally important.