All Forum Posts by: Manny Cirino

Lakeland, Winter Haven, Davenport, Plant City, Tampa, Brandon, Orlando, Winter Park, Winter Garden

This is pretty much Central Florida with main 3 large cities being Lakeland, Tampa and Orlando.

Walmart builds and retains ownership of the majority of their buildings, but I have seen many up for sale. I've never a Super Center though, usually it is the smaller neighborhood Walmarts, the ones with the green Walmart sign. Not sure if they have them in your area?

I am a big fan of Florida real estate in the Orlando, Tampa area not so much Jacksonville. The market is hot and properties move extremely quick there. When I say fan I mean I like the value of the properties themselves in other words I like the resale potential. 

The only thing I don't like is the rent inflation. Rent prices are being driven up faster than wages are increasing. Florida jobs just don't pay well for the average joe. Of coarse everything falls on tenant screen anyways. 

There is risk in almost any investment you make. But going back to my original statement I would only buy NNN is stable big markets where population and tourism are common. There are alot of companies I am a fan of and many I would not bank on lasting at all.

For example I am a big fan of Dollar General I am seeing how fast they are growing and spreading and how much of an impact they have on the areas they go in to. I see the same with Wawa, also I like Walmart and Chipotle aswell, but I am by no means an economist so. I am only speaking on investments I am comfortable with.

You are absolutely right, which is why I am more fond of the big box retail chains. Me personally I wouldn't bother doing a NNN lease with a less established company because I don't know how they would hold up during a recession. I say stick to the bigger names.

Its says tenant to sign a new lease once the deal is closed so they are open new lease terms. I am sure you can work something out. Just keep in mind the market today is not going to be the same market in 7 years. If you lock them in for 7 years you still want and escalation on rents over X amount of years. And you still have to grant them some sort of option at the end of the lease.

I say don't sell your self short. Don't be afraid of losing a long term tenant because of lease terms. Lower the terms Could be seen as a sign of desperation. If the company is doing well they will pay and if they are not they won't pay rent regardless of the terms.

@AP Horvath it is true that you can't purchase the NNN properties and immediately increase the rents, but many of the leases have reset dates of rent increases and options they can exercise at the end of there lease terms which were based off future projects, which may or may not fall in your favor depending on market cycles you fall in.

  You should buy based on it how passive the investment is and how comfortable you are with the returns you'll recieve.

If I had a few hundred thousand I would spread it out between a few NNN properties like Dollar General, CVS or Walgreens in hot markets like Orlando, Miami, Las Vegas, NYC etc... and a solid B class multifamily property with a proven track record or standing the test of time. That's a safer bet but you can always go the value add route if you want a long term growth.

Don't over think it. Simply calculate how much rent each unit brings in. And subtract what your mortgage is going to be. 

If there is cash left over you are living for free if not your negative a few bucks.

example:

1st FL - $1,000 rent

2nd FL - $1,000 rent

3rd FL - $1,000 rent

4th FL - owner occupied

Total Rent = $3,000

Mortgage Payment =$1,600 

remainding cashflow = $1,400

your mortgage will include 

principal, interest, taxes, PMI, insurance so there is no need to bust your head.

if there are utilities you are responsible for you subtract those cost. And If you want a property manager you subtract those cost as well. 

K.I.S.S. RULE Always don't complicate a house hack

Buy a used car cash don't finance a new car. Or lease one instead

Don't take out a student loan.

Don't add anyone to my cell phone plan.

Don't waste time partying and drinking 

Don't buy jewelry, rims or sound systems 

Hang with the nerds instead

take out my real estate license ASAP

save all my commissions for a downpayment while living in mommas house for free 

once I have enough saved to house hack a 3-4 unit purchase my first property

buy 1 property every year for the next 10 years

then party and travel the world

Anybody have a time machine I could borrow? ANYBODY???