Net Lease Investor’s Options and/or Alternatives

August 11, 2015July 21, 2018 dajkgroup asset management, Business Consultant, Entrepreneur, investor, net lease, NNN CRE, real estate Business Consultant, business incomes, business owner, commercial real estate acquisition, entrepreneur, investment, investor, net lease, Net lease Buyer, NNN CRE

Net lease investor’s objective is:

1) his target CAP rate;

2) with high or with the lowest net lease management fee.

There is a San Diego-based Net Lease Management.

http://netleasedmanagement.com/

“Net Leased Management is a cost-effective administrative and management support solution for net-leased property owners. For a small monthly fee, Net Leased Management provides accounting services, monthly financial reporting, lease administration, property-tax compliance and insurance compliance; handles any landlord obligations; and conducts site visits as needed. We also provide access to a master insurance policy for investors to capitalize on bulk pricing and increased limits.”

[Full article…]

Please note a Higher CAP rate is higher the risk and more involvement with property management.

Is there any alternative without paying fee or paying the lowest to net lease management?

Yes, I highly recommend all our clients/investor to select only a true triple net lease or an absolute NNN lease.

The more fees investor is paying for a third party; his return of investment would be reduced proportionally as well.

In fact, different net lease investor has different investment objectives. My task is providing all options both pros and cons and both advantages and disadvantages.

Strategically, when the net lease investor combines with his high taxable income with his net lease investment, it would be a greater benefit for him in a long-term investment.

This strategy would accomplish reducing taxable liability: converting his short term to long term gain which in turn will be taxed at the lowest tax bracket, his fixed income from lease revenue is a passive income to an investor. [Learn more…]

I would inform all my clients about these options and they need to decide how they would like to proceed.

[Learn more…]

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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!

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

July 14, 2015July 22, 2018 dajkgroup asset management, Business Consultant, business finance, business owner, Entrepreneur, finance, investment, investor, net lease, NNN CRE, real estate Business Consultant, business owner, commercial real estate acquisition, creative finance, Dollar General, entrepreneur, Net lease Buyer, NNN Investor

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.

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.

The investor in Net Lease property (“Net Lease” or ”NNN”) also requires to master top six (6) net lease terms.
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.
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.
The investor in Net Lease property understands and seeks for long-term investment objective. It is a minimum of 5 years for Net Lease.
Investor’s monthly income is a passive income, which taxed at lower tax rate than the earn income.
The investor in NNN can leverage using mortgages or OPM if he wants to. This is a great option.
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.
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

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In Hong Kong, the “Mosquito Apartments” sells for $US 2,872 per square foot

June 4, 2015June 6, 2015 dajkgroup Business Consultant, Entrepreneur, finance, investment, investor, net lease, NNN CRE, real estate Business Consultant, business incomes, commercial real estate acquisition, entrepreneur, net lease, Net lease Buyer

Buyers in Hong Kong are snapping up “Mosquito Apartments”—180-square-foot flats in luxury high-rises. These tiny dwellings are selling for more than $500,000 in some areas – Source WSJ

Video-WSJ

Full article WSJ

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Would you spend for “mosquito apartment” or invest in net lease CRE?

What is the monthly net income with the same amount for net lease commercial real estate investment can be collected?

Investment capital amount: $US 2,872/SQFT or $US 516,960
Net lease’s capitalization rate (“CAP”) = 5% or $US 25,848 (annually)
Term: minimum is 5+ years

Therefore, your NNN CRE-USA investment will generate $US 2,154 per month. Please note this is your passive income which will be taxed at lower than your earn income.

Learn more, please visit DAJK Group.

More resources at Amazon Corner

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Case Study: Sale-Leaseback Technique of Wendy’s and McDonald

May 12, 2015May 13, 2015 dajkgroup Business Consultant, business finance, business owner, Entrepreneur, finance, investment, investor, net lease, NNN CRE, real estate budget analysis, Business Consultant, business incomes, business owner, case study, commercial real estate acquisition, investment, investor, Lesson Learn, net lease, Net lease Buyer, NNN CRE, Sale-leaseback

Wendy’s Refranchising 640 Stores

Following a pattern we’re seeing in the wider market, Wendy’s this week announced that they were going to sell as many as 640 stores to their franchisees. This on the heels of McDonald’s announcing they would do the same for 3,500 stores as part of their effort to boost the bottom-line.

It’s not exactly clear how many, but certainly some sizeable percentage of these stores may be candidates for sale-leasebacks by the Franchisees. Sale-Leaseback activity in the franchise space has been brisk this year and a flurry of new inventory of this type is exactly what the market is looking for.

With constrained supply and high demand, these franchisees would likely have no problem doing sale-leasebacks to help them finance the store purchases, particularly if the stores in question have a good sales history and the franchisee is substantial enough.

This refranchising trend has been increasing lately largely as a mechanism of the franchisors to trim corporate overhead costs. [1]

Why and How?

Commercial real estate owner find ways to generate revenue and increase capital. A sale-leaseback technique unlock the equity a company has in its real estate and to convert that equity into cash. This involves selling the institution’s headquarters or branch offices and simultaneously leasing them back long-term.

In addition, many property-owners are recognizing the tax benefits and other advantages of these transactions. Finance adviser/consultant can advise clients on the benefits and help them find sale lease back providers.

In general by sale-leaseback its property, a property-owners can lower its operating costs and use that money to increase its cash flow.

Six benefits of sale-lease back transactions:

1) Favorable Impact on Earnings. A sale-leaseback transaction converts noncurrent fixed assets such as real estate into current liquid assets— i.e. cash. It can generate a gain on the sale when properties’ market or appraised values are more than the depreciated book value. Property-owners often can improve their earnings by reinvesting the cash at a greater rate, retiring high cost debt funding mergers and acquisitions, expanding operations, or taking advantage of special investment opportunities.

2) Total Facility Control. Simultaneously with the sale, the company leases back the property for an initial lease term — typically 15 years with renewable five-year options. In effect this gives the company control of its real estate for at least 40 years. This would be identical to ownership of the property’s normal useful life.

3) Low cost of Money. A sale-leaseback transaction can be a quick economical way to raise capital compared to the process of originating a new stock issue. Issuing new stock may result in an ownership dilution at unfavorable prices or with unwanted investors.

The leaseback is a low-cost technique that avoids these consequences as a rule, a sale-leaseback transaction should provide capital at an effective cost of 100 to 150 basis points less than that of long-term mortgage financing or the long-term conventional debt market. It should have no restricted covenants and no principal repayment after all lease payments.

4) Recapture all costs. In a typical sale-leaseback transaction, the company would recapture all costs relating to the property’s current market value, including legal fees, surveys, architectural engineering, title, and any other closing costs or property- related fees. This contrasts to conventional long-tern mortgage financing, which is usually restricted to percent of the current market value.

5) Regulatory Compliance. The cash a business receives from a sale-leaseback transaction can help it improve its primary and total capital-to-assets ratios The profit on a sale-leaseback transaction from depreciated value to current appraised value can increase a company’s net worth.

6) Off-balance-sheet Finance. By carefully structuring an operating lease, the transaction would not require capitalization under Financial Accounting Standards Board is criteria. In turn, this allows off-balance-sheet treatment, which in effect would have a more favorable impact on the company’s earnings and improve its financial ratios.

RESOURCES from Amazon Corner

Publication

[1] Wendy’s Refranchising 640 Stores

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

April 18, 2015May 8, 2015 dajkgroup Business Consultant, business entity, business finance, business owner, Entrepreneur, finance, investment, investor, net lease, NNN CRE, real estate Business Consultant, business owner, case study, commercial real estate acquisition, Dollar General, entrepreneur, investment, Lesson Learn, mcdonald, net lease, Net lease Buyer

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

David Sobelman, Jonathan Hipp, Richard Murphy

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The NNN Triple Net Property Book: For Buyers of Single Tenant NNN…

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David Sobelman, Jonathan W. Hipp

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The Due Diligence Process Plan Handbook for Commercial Real Estate…

Mr. Brian Hennessey, Mr. Adam Knowlton, Mr. Shawn Salimian

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Real Estate Mail Box Money: The Passive Investors Guide to…

Dwaine L Clarke

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Investing in Retail Properties a Guide to Structuring Partnerships…

Gary D. Rappaport

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How to Succeed in Commercial Real Estate

John L. Bowman

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How To Win In Commercial Real Estate Investing: Find, Evaluate…

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The A B C’s of SITE SELECTION: How to Pick Winners and Avoid Losers

Frank Raeon

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Commercial Real Estate Investing For Dummies

Peter Conti, Peter Harris

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James A. Randel

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Negotiating Commercial Leases & Renewals For Dummies

Dale Willerton, Jeff Grandfield

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Investing in Apartment Buildings: Create a Reliable Stream of…

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

March 22, 2015June 11, 2015 dajkgroup investment, net lease, NNN CRE commercial real estate acquisition, net lease, Net lease Buyer, NNN CRE

Our Net Leased investment objectives:

Investment funds are secured by commercial propert(ies)
Investor will receive monthly fixed income guaranteed by national tenants who has annual revenue $US 100 million
Investor will also receive its appreciation
For US Investors, it also has some tax implication as well

Our first step in our selection is identify who is a right tenant matching with your investment strategy [read more…]

Famous quote from Warren Buffet: Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.

How would investor protect his investment funds? It’s simply following our net leased investment objectives.

In fact, once your investment is secured by the commercial real estate and monthly fixed income are guaranteed by a national tenant, you know that you are making a strategy investment decision. This intelligent and calculated move are not only protect your investment fund; but it is also guaranteed of your appreciation when our selected lease term is at 5 years or 10+ years.

To safeguard our investor investment, our selected net leased properties must be located in a strategic location. It’s a typical location of our selected net leased location.

Our typical national tenants are:

7-Eleven, RiteAid, Walgreens, CVS Pharmacy, Dairy Queen, KFC Fried Chicken, Taco Bell, Burger King, Starbucks, Costco, Home Depot, Dollar Family, McDonald, In&Out Burger, Staples, Key Bank, Bank of America, Chase Bank, Wells Fargo Bank, Shell Gas Station, Dunkin’s Donuts, Verizon, AT&T Store, Walmart Neighborhood Market, Dick Sporting Goods, LA Fitness, Tractor Supply, Advance Auto Parts, Davita Dialysis …etc.

Our free consultations are described in our earlier blog

If you would like to invest in net lease commercial real estate (NNN CRE), 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

For further clarification, please sign-in our free consultation.

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March 18, 2015March 18, 2015 dajkgroup Uncategorized Business Consultant, case study, Net lease Buyer, Payroll service

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