All Forum Posts by: Aamir V.

I am dealing with a tenant who is asking for changes in the rent and I want to ask for sales reports in return.  I have seen some other language around a gross sales report but was wondering if anyone here has thoughts.

One specific thing I wonder about is where the "gross sales" definition gets negotiated... like I can imagine there being arguments around coupons/discounts/refunds... and what's a valid source of numbers.

How do y'all think about this?

I would love to hear more about this, too, from others here.

I will tell you that I'm helping my dad, and he has held a few STNL for almost 20 years.  The rents have been fine, but the appreciation is hard to grasp.  Like how are @James Storey and @Don Bingham thinking about valuation when its tied to the lease... which is getting shorter every year?  There's an underlying renewal assumption that could be blown up by something like the pandemic, right?

I'm in the same boat and don't like Quickbooks because of what @Soh Tanaka is talking about... but why is QB too expensive?  Given your description of holdings... $700 (?) / year seems like a very small cost of doing business.

@Daniel Hyman, @Basit Siddiqi, @Simon W.

Why is QBO the industry standard once you get past a few properties?

I've heard about things like Xero... do they work well?

And Simon mentions things like Chart of Accounts - does that really matter or is it an accountant convenience?  Like why can't I just track things using the Schedule E categories Daniel mentions?

The lease usually describes what will happen.  I've seen two variants myself:

1. all bills go directly to the tenant - this does require a lot of trust but has worked out for us as long as we have someone check the tax sites and ask for insurance certificates at the deadline/renewal times

2. all bills go to the landlord - the landlord in return charges base rent + common area maintenance prepayment (CAM) which can break down coverage of the NNN components. At the end of the year, you send a balancing refund or invoice to make things whole. The tenant can ask for the overall list of payments if they want to see how it all netted out.

In both cases, the costs may need to be broken down between tenants, and this again requires checking your lease agreement on whether it's split by square footage, usage and metering, fully separated, etc.

Tracking all of this is done through Quickbooks + Excel manually for most folks, but we've developed a nice Quickbooks plugin that helps make this easier.

In our leases I’ve seen two things. First, the insurance is usually directly handled by the tenant so the pricing is up to them as long as they meet the minimum requirements of coverage and grade. So as landlords we don’t see anything but the certificate of insurance showing us as additionally insured. Second, the taxes are taxes and there is an understood agreement on protesting to the county/entity on a yearly basis. This is also usually handled by the tenant in our case but we do it for one of the them. For that one we end up footing the bill but that was a post-signing discussion and we decided to do it for the relationship. 

Did you pay all cash (and how)?  If not, you could include the money down and interest payments and come up with an even better profit number...

Piedmont is not near BART but there are two rush-hour bus lines (the C and the P) that go into the city <40 minutes.

Rockridge is awesome.

Temescal is gentrifying fast.

Great question - I would love to hear about this, too.

Hi! I know there's a lot of residential activity in San Francisco, but are there any folks who are based here thinking about NNN (here or around the country)? I'd love to talk to you about your approach - my family has been doing this stuff for years and I'm starting to get involved, but there are some questions I have that I feel like would be good to hear from someone else about so I get outside my bubble.

Examples of what we do:

* a few billboards

* a fair number of STNL restaurants

* a few shopping plazas (aka strip malls with 3-4 tenants)

If you have experience with this type of stuff I would love to talk more!