If you are looking for a competitively priced, but lucrative, option to build wealth through real estate, then you should consider Church’s Chicken NNN investments. While this fast-food chain offers cheap prices for their triple net lease (NNN) properties, the company has been seeing strong sales and rapid growth over the years. As such, they are a good opportunity to grab, especially if you are just starting in the world of NNN investing.
However, like any other form of real estate investment, you should take certain measures to ensure you get the most out of your money and minimize pitfalls down the road.
Church’s Chicken: Company Overview
Church’s Chicken, which has the international name of Texas Chicken, is one the most popular restaurant chains in the US, with branches in other countries around the world. The restaurant is known for serving and delivering some of the best breaded and buttered chicken recipes, such as its Tender Strips, with sandwiches and other side dishes that always delight customers.
Since the company’s opening in 1952, Church’s Chicken is ranked among the top well-known restaurant chains in the country, grossing close to $840 million in sales revenue in 2016.
At present, the company already has more than 1,150 franchises alongside corporate-owned retail locations spread out between 29 states, with construction plans for additional branches in the South Eastern US.
As for the prices of Church’s Chicken real estate for sale, they can range from $700,000 to $2,600,000 depending on the location and the size of the property.
Why Buy Church’s Chicken Properties
Apart from the fact that Church’s Chicken offers cheap restaurant franchises, there are other more reasons to invest in their properties.
Less Responsibility on the Part of the Landlord
One of the benefits of owning an NNN property is that you will have very little responsibility as the landlord. This means that any wear and tear on the property or repairs required will be taken care of by the tenant, which can save you time and money in the long run.
Stable Rent Payments and Other Incomes
The income you generate from an NNN Church’s Chicken store is very stable and predictable. You can be assured that the rent payments, as well as other incomes generated by the restaurant, will come in on time and without any surprises. This makes budgeting much easier for you and your team.
Greater Control of the Property
As an owner of a Church’s Chicken property, you will have greater control over its day-to-day operations. This includes being able to select the right tenant, setting rules and regulations for them, and getting more involved in marketing efforts.
Simple Management
Since Church’s Chicken properties are triple net leases, the management of these investments is much simpler as opposed to other types of commercial real estate. You will only need to collect rent payments and contact the tenant for any repairs that may be needed, making them a low-maintenance option.
Additional Financing Options
Church’s Chicken offers a number of financing options that can be very beneficial to you as an investor. These include the ability to get seller financing, low down payments, and longer lease terms.
Apart from the perks mentioned above, Church’s Chicken is one of the fastest-growing chains in the country. While this could mean potential risks for investors in the future, it also indicates that there is a high chance of success for anyone who decides to invest in their properties now. With so many branches opening up each year, it would be hard for the company to go bankrupt anytime soon.
How to Find Church’s Chicken Properties
Now that you know all about Church’s Chicken and why you should buy their properties, it is time to find one that suits your needs.
The best way to find Church’s Chicken NNN investments is by using online commercial real estate listing services. These websites offer a wide variety of potential properties from all over the US that you can browse through at your convenience. Of course, you can check the company’s website for a list of franchisees who are selling their restaurants.
Once you have found a property that interests you, be sure to contact the owner or the real estate agent listed to get more information about it and take a closer look.
Important Considerations When Buying NNN Properties
Similar to buying other types of real estate properties, there are factors that you need to keep in mind when buying NNN properties, such as those offered by Church’s Chicken.
Location
The location of the property you are buying is always important. Make sure to research the demographics of the area and see if it is a good fit for your business goals.
Lease Terms
You will need to look at the lease terms to make sure that they are favorable for you. Church’s Chicken properties tend to have longer terms, but this could vary depending on the property.
Cap Rate
The capitalization rate (cap rate), which is the annual return on an investment divided by the purchase price, is another important consideration. Make sure that you are getting a good deal and that the property can generate enough income to cover your costs.
When assessing a potential property, you will know its cap rate by using the following formula:
(Annual Rent – Annual Expenses) / Purchase Price = Cap Rate
For example, if the annual rent is $30,000 and the annual expenses are $15,000, then the cap rate would be 20%.
Remember that you should always consult with a real estate professional to get more accurate numbers before making any decisions.
Financing Options
Be sure to investigate all of the financing options that are available to you. As previously implied, many Church’s Chicken properties come with different lease terms, so choose one that fits your requirements.
Regardless, the assets the company offers are some of the best fast food franchise low investment options that you can find on the market today.
Tenant Reputation
Last but not least, be sure to do your due diligence on the tenant. Church’s Chicken is a reputable company with a strong track record, but it is always important to make sure that the tenant is reliable and will be able to pay rent on time.
Conclusion
Church’s Chicken NNN investments are a lucrative option for building wealth through real estate. These properties offer stability and predictability in terms of rent payments and other incomes, greater control over the property, simplicity of management, as well as additional financing options.
However, you should still do your research and observe due diligence to make sure you are making a wise decision. With the tips provided above, you should be able to start on the right foot in your investment journey.
For more articles and information that you can use on your business and real estate endeavors, feel free to browse our site!
