All Forum Posts by: Justin Lau

Joel you have some great points here. There is a lot of strategy and art to this. I was considering NNN but would need to diversify and take on a lot more debt to than I am comfortable with. I will have to be more active than passive because I will rely on the income of these investments. And I may have to look outside of my area in New England as cost of building is so high. So maybe be active in something I can control more than a STNL. If a NNN goes dark and I don't have my exit strategy in place or how to take on that loss, I'll be in a bad position. Looks like have to work it for some time to increase my wealth either investing in value add residential here in the Metro Boston Area since I have some experience in that. But prices are insane and have to play the long game. Maybe sit on my cash for a bit, get a job to cover expenses till the market cools down and I make a purchase. I guess my question is why would people want 3 million and under 5 caps with 5 years left on the lease? Are they just in a position where they need to park money and have no other choice but to get out of their current investment holding?

Hello Joel, thank you for these insights. I can see the strategy behind these. I wonder why bother with these NNN that have 5 years left? What upside is it to anyone wanting to pay 1.6 million in cash for a risk of a dark property. Would strong location near a major city, long term tenant history, corporate Guarantee, no competition be exceptions? What would you say about NNN, higher cap properties that are in small gateway cities, Near suburbs. Density is high land value high but smaller parcels and cost to build are high. Could look at that as a disadvantage or advantage if the area is having development opportunities…

Igor, how did you make out on your NNN?

Hello Joel. Would a NNN STNL be a good investment for someone with a net worth 2 million. Is relying on one 1.6 million STNL 6% cap, 5 years left on lease with 2 more 5 year options be too risky? Also supplementing with 2, 1 bdrm condos. Seems like too much in one basket. If the STNL goes dark how does that get sold or traded up later? Seems like valuations of NNN are different than with MF Buildings or SFR. It would seem that it's reliant on the tenant to renew their next 5 year extensions. How does one trade up or buy up in these situations. Especially seeing that interest rates may rise soon reducing values of NNN Properties. I've seen leases finish a term lease of 10 years and then the rent is reduced significantly for shorter 5 year options. Is this typical strategy of the renter? I guess knowing the renters strategy is helpful as well to make these investments worthy.

Hello, I am in the middle of a sale and anticipating a 1031 exchange for a NNN. I'm looking at my options. I'm looking primarily in the northeast (MA). I'm seeing 4.5 to 6% caps for 1.5 to 2.3 million dollar properties. Interested in getting one of these but seeing only 5 years left on leases with options but hard to anticipate tenant will resign. Looking at banks, fast food. Not so sure about dollar general but they seem to have longer leases. looking to put down more equity and new mortage for a longer lease NNN but lower cap (10-15 years) to have stable income. Franchise vs Corporate? How's to plan for stagflation looking economy. I plan to also diversify my portfolio with residential condos outside the greater boston area. Thank You!