All Forum Posts by: George Jan

@Brent Shields -- thanks. Hopefully, we will have a similar experience. 

@Ronald Rohde -- thanks. Yes, there always are legal, accounting and other expenses, but I didn't quite understand what 2-3% applies to. It's a one-time or annual? And on what gross--gross income or price paid? 

@Kevin Sellers -- thanks. 

@Joel Owens -- thanks, too. I've sent you a private message.

Three large US trusts plan to jointly make multiple real estate investments over the next few years, starting now. Absolute NNN Retail looks like a very interesting category. I am the only person with the decision making authority for investments for these trusts. The investment amount to be disclosed privately.

Interested in

- several investments
- locations nationwide
- fee simple interest or ground leases
- single-tenant (perhaps also 2-3 tenants in a strip, depending upon who does the repairs...)
- awesome micro and macro locations are crucial
- most types of tenants are fine, but not all. Details to be provided after a discussion.

1.
I am looking for a top buyer's broker with long-time NNN experience to be the exclusive buyer's agent. I have over 25 years of expertise of running, buying and investing in businesses, but have limited experience in real-estate. Would appreciate any names and contacts of great NNN retail buyer's brokers.

2.
While Absolute NNNs have in theory no costs to the owner, I presume the tenant, when looking to take an option to renew, would ask for TIs in cash or free rent.
- How often does this happen? Does it happen more often with certain types of tenants/properties or in certain areas (besides those not doing so well)?  
- What % of the NOI should usually be budgeted for that reserve over a 20-year period. (I'd assume that within 20 years, most roofs, A/Cs, parking lots need to be fixed in a major way and, quite often, the exterior needs to be updated to new unit prototypes.)

3.
What's the current state of the NNN retail market.

(There would be other things I'd like to discuss and can be commented on such as the average time to re-tenant in the worst case scenario, which of course, would be highly dependent on the location and the type of tenant, property size...)

Thanks much in advance! This forum is amazing!

George

Thanks @Dave Van Horn

@Chris Seveney, do you focus on performing or non-performing notes? Do you work with investors in some way, too? 

@Dave Van Horn thanks for your reply. Could you put some more light on where the liability would come from e.g. for the notes on non-owner occupied properties, managed by property companies. An investor is just a note holder in any case. But even if the note defaults and you have to foreclose on the property and something happens there, you are a passive owner, not a property manager. I am curious as to how you can be liable for anything. 

@Chad U. recommended for you: Thailand in the winters, the   Mediterranean in the summers. Can enjoy life and the sun, and log on to the conference from both places :)

@Dave Van Horn you say "The good news is, unlike when owning an individual note, by investing in the fund you cannot lose any more than your initial investment principle and you're well diversified among multiple assets." 

I totally agree about diversification. But how can you lose more than what you invested in an individual note? It's like buying a corporate or muni bond or a stock, for that matter--you can only lose the amount you invested. 

Are you talking about a potential liability of some kind because when investing in a fund, you invest in an LLC? But you can also buy individual notes via an LLC.

@Jay Hinrichs I've PMed you a day or two ago. Very impressed with your knowledge and experience, and the notes you have for your investors sound interesting to me. I would love to get more info via a private message. Looking forward to it. 

@Holly Williams Congrats! 

Could you explain more how you invested passively: 

- Was it in a syndicated deal or via crowdfunding websites? 

- Was it debt or equity? 

- That looks like 8.6% annual income, plus you got 26% in capital gains ($36k) -- what were deal terms, what was guaranteed etc? 

- Why is the annual income tax deferred? And when do you need to pay taxes on it?

Thanks!!