Net Lease Case Study: Kevin OLeary’s O’Shares ETF versus Net Lease Strategy

O'Share ETF vs Net Lease Strategy

Exchange Traded Fund Definition

An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.

Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated once at the end of every day like a mutual fund does.

Read more: http://www.investopedia.com/terms/e/etf.asp

Kevin O’Leary’ OShares

After she died I became the executor of her estate and for the first time saw the results of 50 years of investing in only dividend paying stocks. Her returns were stunning. She was not a financial advisor but she believed in the principle that you should get paid while you wait. To her a stock that did not pay a dividend was simply a speculation not an investment because you could only make money if the stock went up. Dividends assured her of income and she would only spend that.

Seeing the results of her philosophy changed my mind about investing forever. I did some research. Did you know that over the last 40 years over 70% of the markets return came from dividends, not capital appreciation? That settled it for me, today I never invest in stocks that don’t pay dividends.

Full article at https://www.linkedin.com/pulse/my-love-dividend-paying-stocks-made-me-create-own-etf-kevin-o-leary

Our Net Lease Strategy has 4 similar characteristics and 4 distinct and unique advantages over dividend paying stocks

Our comments on 7/14/15 14:15 PST

Mr. O’Leary,

Thank you for sharing your story regarding your mother’s investment philosophy.

  • Investor only requires to master few investment principles/strategies so that he can invest money on his own without a financial advisor.  Of course, he needs to a) search and select right dividend paying stocks; 2) strategize for a long term objective is 40 to 50 years.

A similarity with your mother’s investment philosophy, our Net Lease Strategy has 4 similar characteristics and 4 distinct and unique advantages over dividend-paying stocks.

  1. The investor in Net Lease property (“Net Lease” or ”NNN”) also requires to master top six (6) net lease terms.
  2. The investor also requires to research, analyze, due diligence and review his acquisition. Since lease agreement is guaranteed by a tenant, therefore, tenant’s net worth must be at $US 100+ million in last 12 months.  For example, it describes in details in Case Study Family Dollar.
  3. The investor in Net Lease also receives his monthly fixed income, called capitalization rate or short for CAP rate or just CAP. In fact, if net lease properties cannot pay CAP (positive cash flow at closing), it just a speculation.
  4. The investor in Net Lease property understands and seeks for long-term investment objective. It is a minimum of 5 years for Net Lease.
  5. Investor’s monthly income is a passive income, which taxed at lower tax rate than the earn income.
  6. The investor in NNN can leverage using mortgages or OPM if he wants to. This is a great option.
  7. The investor in Net Lease can purchase insurance against his underlined net lease property. This is a requirement for protecting his funds.  In contrast, you cannot buy insurance against dividend-paying stocks.
  8. The investor in NNN has full control of his investment. He can re-fi with cash out, cross collateral, sell and lease back or SLB, sell with seller finance or wrap-mortgage.

Additional of the net lease can be found at http://www.dajkgroup.com/net-lease-investment.html.  It is including case studies and our monthly selections.

Your Shark Tank’s episodes are always enjoyable, entertaining and packed of valuable investment strategy and creative structured finance.

Thank you for your time, Kind regards

Related blogs:

  1. Big Buyer of Net Lease Report – March 2015
  2. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  3. First Key selection of net lease Commercial Real Estate investment…?
  4. Net Leased Commercial Real Estate (NNN CRE): Step #2
  5. Should you invest in Net leased commercial Property? Or Multifamily or Self-Storage?
  6. How much McDonald invests in net lease commercial real estate?
  7. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!
  8. Case Study: Sale-Leaseback Technique of Wendy’s and McDonald
  9. What is an alternative investment real estate versus vacation home…?
  10. In Hong Kong, the “Mosquito Apartments” sells for $US 2,872 per square foot
  11. Net lease or Triple-net Lease is an Alternative Solution for Removing 12 Headaches in Real Estate Rental
  12. Net Lease Case Study: Family Dollar

If you would like to inquire about our Concierge Services, please sign-in our free consultation


Sponsored Ad

Shop Amazon Corner – Get the New Kindle Fire HDX Tablet

Kindle Fire HDX

*** TAKE ADDITIONAL 10% OFF for ALL FIRST TIME PURCHASER


DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Our group of expert Oil Trader, Commercial Real Estate Specialist, Asset Management, and Business & Financial Analyst, can help to answer all your questions and to provide you with investment alternative and options catered to your investment strategy.  Sign-up for a free 30-minute consultation with us now!

Growing, Evolving and Pushing Forward!

Advertisements

What is an alternative investment real estate versus vacation home…?

NET LEASE Big Buyers

Mortgages on vacation properties have harder terms—and more expensive to own than a primary residence.

Is your vacation home an investment property?  Homeowner would need to consider and calculate

  • Cost of the mortgage
  • Insurance
  • Taxes
  • Maintenance & Repair

Lender’s requirement are higher down payment and at least 50 basis point on the second home comparing with your primary home.

In addition, lender would calculate your debt-to-income (“DTI”) against the borrower when they apply for another mortgage.  Under current federal laws, a borrower’s DTI must be 43% or lower to qualify for most mortgages.   This DTI percentage measures the borrower’s overall monthly debt payments relative to income—the lower the debt, the better.

In fact, many lender also calculate the vacancy rates, roughly from 25 to 30% of the year.

Borrower may have to research for lender who are non-traditional lenders for the investment-home market who would willing providing 30-year, fixed-rate mortgage specifically developed for landlords who cannot qualify for loans from traditional lenders.

In general these lenders term at higher interest rate and loan-to-value (“LTV”) is approximately 75% the property’s appraised value.  Please note the minimum credit score is 650.

The rental income covers mortgage payments and still enjoy the property for some personal use.

Here are some consideration for using a vacation home for rental:

Documentation & Paperwork. Borrowers hoping to qualify for an investment loan can expect lenders to ask for proof of ongoing occupancy, such as a copy of the lease and evidence that a security deposit was collected

Higher taxes. Non-primary residences aren’t eligible for homestead exemptions on local property taxes. Mortgage interest on investment homes isn’t deductible for federal income tax purposes.

States and local municipalities require vacation-property owners to collect and pay the same lodging taxes as hotels and charge stiff penalties to nonpayers.

Maintenance & Repair.  Maintenance and insurance costs will have higher rates than homeowner’s policies. Vacation rentals also require cleaning and marketing, which can be handled by a real-estate management company—at an additional cost.

DAJKGROUP3

Alternative, net lease commercial real estate (“NNN CRE”) investment is a long term, secured by real estate, low risk, reasonable yield and fixed income.  You may not need to factor a maintenance and repair if you know how to select a right net lease property.

  1. BIG BUYER of NET LEASE REPORT – March 2015
  2. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  3. Typical net lease commercial real estate
  4. Net Leased Commercial Real Estate (NNN CRE): Step #2
  5. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!

Please subscribe for our monthly selection of NNN CRE USA and investment resources.

Also, please sign up for your free consultation if you need further discussion.

Resources at Amazon Corner

  1. The Little Book of Triple Net Lease Investing: Second Edition
  2. The NNN Triple Net Property Book: For Buyers of Single Tenant NNN…
  3. The Little Book of Triple Net Lease Investing
  4. The Due Diligence Process Plan Handbook for Commercial Real Estate…
  5. Real Estate Mail Box Money: The Passive Investors Guide to…
  6. Investing in Retail Properties a Guide to Structuring Partnerships…
  7. How to Succeed in Commercial Real Estate
  8. How To Win In Commercial Real Estate Investing: Find, Evaluate…
  9. What Every Real Estate Investor Needs to Know About Cash Flow…
  10. The A B C’s of SITE SELECTION: How to Pick Winners and Avoid Losers
  11. Commercial Real Estate Investing For Dummies

Publication/Article


Currency Exchange update 5/6/15

Managing Your Money_Image 4

Currencies
 
The USD is down sharply against both the major and emerging market currencies. There is a very strong correlation between the direction of German 10-year interest rates and euro over the past weeks; European currencies are all higher led by Norway which has been helped by the surging oil prices. Emerging market currencies are higher also helped by stronger commodity prices and somewhat better global equities. Colombia is the top performer today up by 1.38% with only India slightly weaker on the session.
5-6-2015

If we can help you with any Foreign Exchange needs, please do not hesitate to contact us.

Please note a minimum per transaction is $US 100,000
Currency EXCHANGE CAN SAVE YOU MONEY

Our Payroll Service is bonded $US 100 million and registered with Internal Revenue Service.  If we can help you with any Payroll needs, please do not hesitate to contact us.

Payroll Service

Our net lease commercial real estate investment is also available for investors who are seeking for an alternative investment secured by real estate, low risk, reasonable yield and provide fixed monthly income.


Real Estate Lenders nationwide…? (residential & commercial)

Investors or Borrowers have challenging credit issue…?  Our private real estate lender network may provide funds for your project.  If you have a good credit score, our relationship with Wells Fargo bank may provide funds for your project.  Please contact us with your inquiry information.

Real Estate Lender


DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Updates Products_Services_AmazaonCorner

TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!

AMAZON CORNER aStore 3

These books are providing business owners, investors and entrepreneurs useful information, insight, resources, advice, guidance and inspiration for acquiring their commercial real estate investment, increase their assets and profitable business.

The Little Book of Triple Net Lease Investing: Second Edition
The Little Book of Triple Net Lease Investing: Second Edition
List Price: $24.99
Price: $19.47
You Save: $5.52 (22%)
The NNN Triple Net Property Book: For Buyers of Single Tenant NNN Leased Property
The NNN Triple Net Property Book: For Buyers of Single Tenant NNN…
List Price: $4.05
Price: $3.50
You Save: $0.55 (14%)
The Little Book of Triple Net Lease Investing
The Little Book of Triple Net Lease Investing
List Price: $24.99
Price: $24.21
You Save: $0.78 (3%)
The Due Diligence Process Plan Handbook for Commercial Real Estate Investments
The Due Diligence Process Plan Handbook for Commercial Real Estate…
Price: $19.95
Real Estate Mail Box Money: The Passive Investors Guide to Collecting Guaranteed Monthly Rent Checks From Brand Name Corporate Triple Net Lease Tenants With No Management, No Hassle & No Experience
Real Estate Mail Box Money: The Passive Investors Guide to…
List Price: $22.77
Price: $21.52
You Save: $1.25 (5%)
Investing in Retail Properties a Guide to Structuring Partnerships for Sharing Capital Appreciation and Cash Flow
Investing in Retail Properties a Guide to Structuring Partnerships…
List Price: $29.95
Price: $22.18
You Save: $7.77 (26%)
How to Succeed in Commercial Real Estate
How to Succeed in Commercial Real Estate
List Price: $21.95
Price: $15.81
You Save: $6.14 (28%)
How To Win In Commercial Real Estate Investing: Find, Evaluate & Purchase Your First Commercial Property - in 9 Weeks Or Less (Rich Dad Library)
How To Win In Commercial Real Estate Investing: Find, Evaluate…
List Price: $16.95
Price: $13.68
You Save: $3.27 (19%)
What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures
What Every Real Estate Investor Needs to Know About Cash Flow…
List Price: $26.00
Price: $13.28
You Save: $12.72 (49%)
The A B C's of SITE SELECTION: How to Pick Winners and Avoid Losers
The A B C’s of SITE SELECTION: How to Pick Winners and Avoid Losers
List Price: $19.99
Price: $17.99
You Save: $2.00 (10%)
Commercial Real Estate Investing For Dummies
Commercial Real Estate Investing For Dummies
List Price: $21.99
Price: $16.23
You Save: $5.76 (26%)
Confessions of a Real Estate Entrepreneur: What It Takes to Win in High-Stakes Commercial Real Estate
Confessions of a Real Estate Entrepreneur: What It Takes to Win in…
List Price: $23.00
Price: $18.57
You Save: $4.43 (19%)
Negotiating Commercial Leases & Renewals For Dummies
Negotiating Commercial Leases & Renewals For Dummies
List Price: $22.99
Price: $17.81
You Save: $5.18 (23%)
Investing in Apartment Buildings: Create a Reliable Stream of Income and Build Long-Term Wealth
Investing in Apartment Buildings: Create a Reliable Stream of…
List Price: $27.00
Price: $20.17
You Save: $6.83 (25%)

Related topics:

BIG BUYER of NET LEASE REPORT – March 2015

Top 6 Terms You Should Know Before Investing in net lease commercial real estate

First Key selection of net lease Commercial Real Estate investment…?

Net Leased Commercial Real Estate (NNN CRE): Step #2

How much McDonald invests in net lease commercial real estate?


Please contact us for free consultation.

**  Additional 10% discount is applied when you subscribe and shop from our Amazon Corner.


 

Business consultant’s book at Amazon Corner 

Amazon Corner’s Books

First Key selection of net lease Commercial Real Estate investment…?

Who is your tenant (who pays and guarantees the lease for you)

One of our criteria selection for net lease commercial real estate investment (NNN CRE) is very carefully select the right tenant.  In fact, it is also one of the best way to mitigate your risk as well.

For example, if tenant is Dollar General, you can find out this company profile as follow:

Dollar General Corporation is a United States chain of variety stores headquartered in Goodlettsville, Tennessee. As of January 2015, Dollar General operated over 11,500 stores in 40 U.S. states.

The company acquired the 280 stores of the P.N. Hirsh Division of Interco, Inc. (now Heritage Home Group) in 1983, and in 1985 added 206 stores and a warehouse from Eagle Family Discount Stores, also from Interco, Inc.  In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general-merchandise retailer. In some cases, stores are within a few city blocks of each other.

Dollar General offers both name brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf. Although it has the word “dollar” in the name, Dollar General is not a dollar store. Most of its products are priced at more than $1.00. However, goods are usually sold at set price points the range of 50 to 60 dollars, not counting phone cards and loadable store gift cards.

Dollar General often serves communities that are too small for Walmarts (although many locations are in relatively close driving distance to a Walmart store or in the same communities that Walmart is located). It competes in the dollar store format with national chains Family Dollar and Dollar Tree, regional chains such as Fred’s in the southeast, and numerous independently owned stores.

Since 2000, Dollar General has experimented with stores that carry a greater selection of grocery items. These stores, (similar to the Walmart Supercenter, but much smaller), operate under the name “Dollar General Market”.

Formerly called J.L. Turner and Son Wholesale
Type Public
Traded as NYSE: DG
S&P 500 Component
Industry Discount retailer
Founded 1939 in Scottsville, KY
Founders J.L. Turner
Cal Turner Sr.
Headquarters Goodlettsville, Tennessee
Number of locations 11,500+ (2014)
Areas served Contiguous United Statesexcept for the Northwest,North Dakota and Maine
Key people Richard W. Dreiling (Chairman & CEO)
David M. Tehle (Executive Vice President & CFO)[1]
Products General Merchandise, Grocery, Photofinishing
Revenue $16.022 billion (2013[1])
Operating income $1.655 billion (2013)
Net income $952.7 million (2013)
Total assets $10.367 billion (2013)
Divisions Dollar General Market
Website Dollar General

The dollar store chain is gearing up for heated competition after losing its bid to buy Family Dollar in January, which will instead merge with Dollar Tree and usurp Dollar General of its title as the biggest dollar store company in the country.

As part of its efforts to compete, Dollar General said it will open approximately 730 new stores in 2015, bolstering its current footprint of 11,789 stores across 40 states. To compare, Dollar Tree will have approximately 13,000 stores after it combines with Family Dollar.

In the quarter, Dollar General said same-store sales climbed 4.9%, driven by strong growth across food and tobacco, as well as increased customer traffic and average transaction size. Total revenue rose 9.9% to $4.94 billion, just missing analyst estimates of $4.95 billion.

The company revealed plans to return capital to shareholders through a $1 billion share repurchase program, plus the initiation of a quarterly dividend of 22 cents per share.

Net income rose to $355 million, or $1.17 per share, compared to $322 million, or $1.01 per share, a year ago. This was in line with the consensus call for $1.17 per share.

For 2015, the company is projecting per-share earnings of $3.85 to $3.95 and revenue growth of 8 to 9%. Analysts had forecast $3.99 per share in earnings and 9% revenue growth.

Shares are up 20% over the last 12 months and rose 2% to $73.15 in premarket trading.


If you would like to invest in net lease commercial real estate (NNN CRE) with Dollar General, please contact us.

If you do not see what you like, please send me your ‘wish list’ with specific investment criteria, we will locate and match your investment wish list.

PROCEDURE:  When you select what NNN CRE(s) you are interested, please send me your Letter of Intent (“LOI”) and Proof of fund (“POF”) to engage with the Seller.  The closing time frame is from 30 to 90 days at this point if the Seller accepts our offer.  The escrow instructions will be provided for wiring of your investment funds once the Sale and Purchase Agreement is executed.  Please note your POF can be a Bank Comfort Letter (“BCL”) from Tier 1 bank or a copy of your deposit with First American Title.

Please note our escrow service is with First American Title, website: http://www.firstam.com/title/commercial/about/index.html

Daniel Nguyen

DAJK Group

daniel586@sbcglobal.net

+562.301.7231

3592 Rosemead Blvd

Rosemead, California 91770

Los Angeles – USA


For further clarification, please sign-in our free consultation

Free Consultation (2)