Calling any investor that are partnered with Walgreens

[Ty Ottaberry]

So Walgreens is one of the best retirement plans there is if you ask me . They simply take care of everything and the tax benefits are amazing!

Walgreens finds the locations

 Walgreens Build the store ,Gets everything up and running .

Then sales to a experienced investor . 

Once the sale goes through, Walgreens then leases the location right back from the investor on a guaranteed 30-year lease.

Walgreens handles all of the management and expenses!...All the investor has to do every month is pay the mortgage and that's all taken care of by simply auto-pay and auto draft. 

The awesome thing is ,Walgreens has amazing Credit. So  banks will definitely be happy Lending you the money to buy a property that has a guaranteed 30-year lease by one of the largest retail stores in the world.   Talk about easy money . Most of us start with single-family homes for rental property which is the stage that I am in  now . In a couple of years I plan to trade all of my single family homes for larger multifamily because we all know that multifamily is much easier to run and also produces more Cashflow. SO trading your single family rental property for apartment buildings is a no-brainer . apartment buildings are still a lot of work to keep up with even though you have your management systems in place . 

So Walgreens is a hassle free Gateway to the good life after years of investing as accredited investor . 

Let's hear some positive stores from the guys that have done a similar investment plan or investor planning to do a similar strategy . 

[John Franklin]

I agree!  It’s tough not to love a pure net lease to an investment grade tenant who typically pays above market rents and signs 30-40 year leases with another 20+ in options.  What’s not to love?   Well...

First, the leases do not typically have annual bumps, track market rates or inflate consistent with CPI.  So there’s a rent trap waiting a few decades down the road.  No problem if you’re in and out on the first 10, but buying one with an older lease can get tricky quickly.

Second, the financing you’re getting from the bank will seldom lock In your interest rate more more than 3-5 years.  So, if/when rates rise, you can possibly get stuck in a flat rental rate that won’t cash flow.  Plus, you can’t get out of or resell the thing without a discount and much higher cap rate. 

Lastly, I’ve seen a small number of leases with little quirks like termination options in the second or third decade, purchase and redevelopment options, or just things that get buried in fine print.

So would I buy one?  Absolutely, but not without clearly understanding the entire lease agreement and downsides.  Then, we can talk about the cap rate.