Triple Net (NNN) Leases with NNNeil Wahlgren

Mike Taravella discusses the importance of understanding your rent roll as a buyer and an owner. Key Information: What is a Triple Net Lease (NNN) and what does it include? Where is the operational risk? With the tenant! Who pays the expenses? Probably the tenant!   Industrial NNN Leases 10-20 year leases Some of these tenants have been there for 30-70 years! Customized the building to their needs Typically no property management needed – 2 year inspections (as needed)   Multi-tenant NNN Imagine your NNN as a bond. What is the ability of the tenant to pay their bills? Is cooperate backing the lease? The strength of your lease is the reliability of the cashflows   Get quarterly reports and verify the “rosiness” of the picture. Always audit the financials and be aggressive with it!   Renewal Risk Sale leaseback – Buy from the owner-operator and then lease it back for 20 years Short timeframes left on the lease are more of the “value add” purchase   Debt on NNN CMBS Nonrecourse debt Big prepayment penalties Recourse debt Regional Banks More flexible Better terms   Schools, traffic count, etc. doesn’t matter! And the dirtier the better!   Find an investment group that does your new asset class already. Most people are willing to help each other! Contact:  www.magcp.com Email: [email protected] To register to invest with us: https://jandg.activehosted.com/f/58 Rand CRE’s Facebook: https://www.facebook.com/randcre Rand CRE’s Linkedin: https://www.linkedin.com/company/randcre Rand CRE’s Instagram: https://www.instagram.com/randcre

Episode 140 of the Jake & Gino: Real Estate Investing & Multifamily podcast, hosted by Jake and Gino, titled "Triple Net (NNN) Leases with NNNeil Wahlgren" was published on November 12, 2021 and runs 38 minutes.

November 12, 2021 ·38m · Jake & Gino: Real Estate Investing & Multifamily

Summary

Mike Taravella discusses the importance of understanding your rent roll as a buyer and an owner. Key Information: What is a Triple Net Lease (NNN) and what does it include? Where is the operational risk? With the tenant! Who pays the expenses? Probably the tenant!   Industrial NNN Leases 10-20 year leases Some of these tenants have been there for 30-70 years! Customized the building to their needs Typically no property management needed – 2 year inspections (as needed)   Multi-tenant NNN Imagine your NNN as a bond. What is the ability of the tenant to pay their bills? Is cooperate backing the lease? The strength of your lease is the reliability of the cashflows   Get quarterly reports and verify the “rosiness” of the picture. Always audit the financials and be aggressive with it!   Renewal Risk Sale leaseback – Buy from the owner-operator and then lease it back for 20 years Short timeframes left on the lease are more of the “value add” purchase   Debt on NNN CMBS Nonrecourse debt Big prepayment penalties Recourse debt Regional Banks More flexible Better terms   Schools, traffic count, etc. doesn’t matter! And the dirtier the better!   Find an investment group that does your new asset class already. Most people are willing to help each other! Contact:  www.magcp.com Email: [email protected] To register to invest with us: https://jandg.activehosted.com/f/58 Rand CRE’s Facebook: https://www.facebook.com/randcre Rand CRE’s Linkedin: https://www.linkedin.com/company/randcre Rand CRE’s Instagram: https://www.instagram.com/randcre

Episode Description