Posted by Yomi on December 21, 2005 at 18:53:47:
Are there any books that you can read on Triple Net Leases?
Any Triple Net property owners here? - Posted by Robert
Posted by Robert on December 05, 2005 at 14:10:33:
Hi,
I was wondering if anyone who currently owns a NNN property could answer a few of my questions. I pulled up some old posts through the archives but they didn’t answer some of the questions I have.
Thanks…Robert
Finding the leasee - Posted by theo (ny)
Posted by theo (ny) on December 08, 2005 at 13:35:05:
I’m new to the NNN idea, but I understand the single family L/O concept pretty well. My question is, whereas the L/O on single families is simple (relatively), it seems nearly impossible to find and pass on a sub-"master"lease to another person. Why would someone take a deal like that, instead of buying a property themself? How do you find a possible tenant for a NNN?
Any help is GREATLY appreciated, as I live in NYC and would love to explore NNN deals here.
Re: Any Triple Net property owners here? - Posted by ray@lcorn
Posted by ray@lcorn on December 05, 2005 at 14:28:29:
Hi Robert,
Yes, I’ve developed several NNN’s in the last few years. Kept some, sold some and building more. How can I help?
ray
Re: Finding the leasee - Posted by Chauncey White
Posted by Chauncey White on December 10, 2005 at 20:27:30:
I have portfolios of NNN properties available for serious investors. Min investments amount is 10% down plus 3% closing costs. Purchase amount over 2M. 323.857.1441
Re: Any Triple Net property owners here? - Posted by Robert
Posted by Robert on December 07, 2005 at 09:34:46:
Hi Ray,
I’m not sure if you got my email. Are NNN properties overall a good investment? What are the upsides and downsides of owning a NNN property. Are profits good enough to split with a partner? I want to make sure I know what Im getting myself into before I commit.
Thanks…Robert
Re: Any Triple Net property owners here? - Posted by Prosperity Group
Posted by Prosperity Group on December 05, 2005 at 19:43:08:
I have a question as well. How does the investor who has several non NNN properties get into the game of owning a triple net property that isnt over a million bucks and isn’t poor on the cash flow side? I had one opportunity before by luck but had to pass the deal onto a friend. But that was by pure luck- are there any other strategies you can recommend Ray?
Re: Finding the leasee - Posted by Dan Roberts
Posted by Dan Roberts on February 16, 2006 at 08:35:28:
Hello,
I?m writing in reference to my property at 1200 4th St. in Key West, Florida.
After the last hurricane it sustained considerable damage. And after careful consideration, here is what I plan to do with the property:
I wish to retain the property but do not wish to sell or invest any monies to upgrade the property and construct buildings to a condition that can be leased. The option I plan to take is a land lease to a third party who will construct a building on the property. I know this is common for gas stations, fast food restaurants, retail stores and other businesses to lease property and construct their own buildings.
Therefore I am inquiring your help to seek a tenant to lease the property.
The minimum lease term would probably be 10 years, with options to renew for up to an aggregate of 20 to 30 years. The initial rent would be based upon the fair market value of the property. The lease should be triple net with the tenant paying taxes, insurance, maintenance, etc. The rent should increase annually a fixed percentage increase. Upon termination of the lease, the building would remain on the property and would be owned by the landlord. In fact, the lease will require the tenant to bring the property up to flood level and construct a building. I would be willing to give the tenant a rent abatement for at least six months during which time the demolition and construction would take place.
On the other hand, if you find a credit worthy tenant who wishes to lease property but wishes for me to construct the improvements, I would use the lease as security for a loan from the bank and have the construction done myself.
The property is presently listed for rent with:
Rose Sanchez ( rosesnchz@aol.com )
Century 21 All Keys
Should you have someone interested, please contact her.
Thank you,
Danny Roberts
Tel 01159398501107
Re: Finding the leasee - Posted by Dan Roberts
Posted by Dan Roberts on February 16, 2006 at 08:33:53:
Hello,
I?m writing in reference to my property at 1200 4th St. in Key West, Florida.
After the last hurricane it sustained considerable damage. And after careful consideration, here is what I plan to do with the property:
I wish to retain the property but do not wish to sell or invest any monies to upgrade the property and construct buildings to a condition that can be leased. The option I plan to take is a land lease to a third party who will construct a building on the property. I know this is common for gas stations, fast food restaurants, retail stores and other businesses to lease property and construct their own buildings.
Therefore I am inquiring your help to seek a tenant to lease the property.
The minimum lease term would probably be 10 years, with options to renew for up to an aggregate of 20 to 30 years. The initial rent would be based upon the fair market value of the property. The lease should be triple net with the tenant paying taxes, insurance, maintenance, etc. The rent should increase annually a fixed percentage increase. Upon termination of the lease, the building would remain on the property and would be owned by the landlord. In fact, the lease will require the tenant to bring the property up to flood level and construct a building. I would be willing to give the tenant a rent abatement for at least six months during which time the demolition and construction would take place.
On the other hand, if you find a credit worthy tenant who wishes to lease property but wishes for me to construct the improvements, I would use the lease as security for a loan from the bank and have the construction done myself.
The property is presently listed for rent with:
Rose Sanchez ( Rosesnchz@aol.com )
Century 21 All Keys
Should you have someone interested, please contact her.
Thank you,
Danny Roberts
Re: Any Triple Net property owners here? - Posted by ray@lcorn
Posted by ray@lcorn on December 07, 2005 at 12:39:54:
Hi Robert,
Yes, I got your email but it’s been a hectic week and haven’t had time to respond. I’m working on an article that should be out next week on NNN’s that will provide a lot of background and analytical tips.
Are they good investments? As with most investments, the answer is “it depends”… mostly on what you are looking for in the way of your overall investment strategy.
Advantages are low or no maintenance and management responsibilities, stable cash flow and all the tax benefits that RE enjoys. Long-term financing is widely available at attractive terms. They make good exit strategies for retiring investors or those making lifestyle changes away from high-maintenance properties. They are also well-suited for beginning, part-time investors, assuming the investor is cognizant of the due diligence issues necessary to understand the property.
Disadvantages include appreciation being limited to the existing lease terms for rent increases; the stability of the investment is subject to the overall health of the tenant; and of course because of demand the pricing is generally high, which lowers the returns relative to other types of investments.
Our family firm has several NNNs retail properties, but the portfolio also includes two operating businesses, several full-service office buildings and two active development projects. For us the answer has always been diversity among property types, so we look at any one type as a component in the mix, similar to weighting a traditional investment portfolio between different stocks, bonds and cash. We look at our RE portfolio the same way. Some properties are growth assets, some are value-based like bonds, and some are speculation. NNNs are typically value plays, meaning the risk of loss is very low, with stable cash flow similar to a corporate bond, and structured for a long-term hold.
ray
p.s. referring to your email, comparing NNNs to franchised businesses is really apples and oranges. A business is at all times a hands-on proposition, and the returns are higher due to the risk and effort required. However, a business combined with NNN investments can be complementary, each contributing unique advantages that often offset respective disadvantages.
Re: Any Triple Net property owners here? - Posted by Patti Porter
Posted by Patti Porter on December 07, 2005 at 08:04:15:
Can you be more specific about what type of property you are looking for?
If you don’t want to post specifics, send me an email.
Regards,
Patti
Re: Any Triple Net property owners here? - Posted by Chadd
Posted by Chadd on December 05, 2005 at 21:55:06:
Thanks Anil…
Re: Any Triple Net property owners here? - Posted by Bill Taylor
Posted by Bill Taylor on December 07, 2005 at 17:57:14:
Ray just another veiwpoint and you tell me if I am right here or off base. I bought a retail property with one empty unit, that was my upside. I bought the investment based on the value of the currently rented units. The last unit to rent had no value as far as the price. Upon renting the last unit I will get my appreciation. Now that was pretty exciting to me. I figured with the down payment that I put down the increase in value would amount to about a 60% increase in what I put into the deal. Now that works for me and those other benefits that you mentioned realy make my day.
Re: Any Triple Net property owners here? - Posted by Robert
Posted by Robert on December 07, 2005 at 13:57:25:
Thank you for you response. Looking foward to reading your article.
Robert