The first step is to determine what the investment goals are and the level of risk that is appropriate.  For example most investors that are retired or considering retirement are most interest in steady, predicable cash flow and safety.  This would indicate properties with multiple strong credit tenants, long term net leases in highly desirable locations.  If the investor is younger they might be interested in properties that have greater appreciation potential and less current cash flow.  As with all investments the first question to ask is how safe is the investor’s money, then how might the investment perform.

Investors need to perform careful and complete due diligence. This includes comparing comparable offerings and their respective risk/reward characteristics; verify information provided by the seller or their representatives with an outside source of information and visiting the property.

Whether the investors is considering investments offered as net lease, tenant-in-common or conventional stand alone properties the final selection should be based on a good grasp of the real estate fundamentals and the specifics of the property being considered.