Why 3N’s beat 4 Aces in Creative Real Estate Investing
What if your sole duty each month was to deposit a rent check?
If you’re like me you’re doing deals in order to do bigger deals that take even less of your time and personal attention.
Well, in my search I found something more valuable than a winning hand at Vegas–The Triple Net Lease of NNN Lease.
Imagine owning millions of real estate with low-risk, management-free, maintenance-free, …even inflation-proof income on commercial properties.
Better, yet, imagine owning it with low money down!
These properties already have tenants before you buy who not only pay you rent, but also pays all your taxes, insurance and improvements (Maintenance)–even if they go up!
Sound too good to be true?
Our guest this Wednesday is Hank Levine who will proved to you the power of Net Lease Creative Real Estate Investing so you can be an Armchair Millionaire.
Dial in this Wednesday at 5:30 PM Pacific, 8:30 PM Eastern by dialing 641.985.8000 pin 2274#
October 5th, 2005 at 9:14 am
Here’s what the Wall Street Journal said almost 2 years ago to the day
[Creative Real Estate] investors are increasingly eager to get their hands on real estate they can pretty much ignore. {I’ll add my comments in {}’s. This is one of the closest things to risk-free real estate investing}
Demand is strong for single-tenant net-lease properties, which are office buildings, (properties occupied by one tenant responsible for the expenses, including taxes, insurance and maintenance, and almost everything else. {Sometimes the tenant is even responsible if they decide to cut and run… We talk about that with Hank Levine on the call scheduled today}
Investors find net-lease properties desirable because they don’t require hands-on, day-to-day management. What’s more, the tenant usually holds a long-term lease — sometimes 30 years — {offering a real opportunity for} income that can be counted on for years…
[Creative Real Estate Investors] can invest in net-lease properties by either buying a property on one’s own or forming a partnership with one or more investors and purchasing it jointly.
{We explore this on the call as well!}
A third option is buying a fractional interest in the property through what is known as a tenant-in-common program {aslo called a TIC-deal}. That option allows investors to get in on “big deals”.
Among the most common net-lease properties:
auto-parts stores,
video stores,
drugstores and
restaurants.
{Even the smll deals can feel like big deals to the new creative real estate investor as} auto-parts and video stores generally cost between $600,000 and $1.5 million, while restaurants can range from $750,000 to $2.25 million.
{Ever wonder if there’s money in pharmacuiticals?} Drugstores can go for $3 million to $7 million. Properties with tenants that have good credit ratings have prices toward the higher ends of those ranges.
Though management of net-lease properties is hands-off, investing in such real estate requires some homework.
Creative Real Estate Investors should analyze the tenant’s financials. That’s easy if a company is public, but it’s a lot harder with a private company.
Around 50% of the time a private company will share the necessary information. Consequently the prudent real estate investor looks to buy a net-lease property with a tenant whose financials are public.
{While the investment is more or less hands-free after the purchase}, brokers advise investors to physically inspect the building. Look at everything from whether the roof is in good shape to whether the parking lot needs repaving to the condition of the building’s heating and cooling system.
So if it’s still Wednesday October 5th be sure to be on the call tonight at 5:30 PM Pacific or 8:30 PM Eastern by dialing 641.985.8000 with private pass code 2274#.