Net Leases Books

10 Replies

Hi Joseph,

I specialize in net lease properties.

There are a couple of decent books out there. The net lease market changes month to month so really it's about the debt rate you can get and the money you have to invest that dictates what type of net lease opportunities you can go for.

You can put questions here.

@Joseph Catalano   What side of the fence are you interested in? I can't help you with books on the subject so much as there is a broad spectrum that takes in "Net Lease".

Leasing as an owner? Single or multiple net leases? Lease Factoring? Lease Bonding? Secondary markets? Lease Analysis and by industry? Sub-letting?

If you state what area you are interested in, your intentions from what stand point, you might get more accurate advice or suggestions. :)

"The Little Book of Triple Net Lease investing" can be ok for starters - but it is VERY basic. I recommend learning the market through recent research articles and industry professionals as the climate is constantly changing. I would be happy to discuss more with you if you'd like. I specialize in the management of net lease portfolios and am focused solely on the single tenant net lease market.

Some good net lease info on blog: Www.netleasemodular.com

Originally posted by @Joseph Catalano:

@Joel Owens @Nico Fricchione  Thanks guys for your help. Joel I just started looking at a couple Trip Nets so i will have a few question. Thanks again. 

@Joseph Catalano

I have a NNN that my attorney now uses & swears by .... if interested PM me & I will give you the relevant information it may be sufficient.

We also own in Lewiston NY.

By the way my Veterinarian just bought & NNN a Pizza Hut locally.

Then this is not like something Realtors generally work with, it's more like buying a note, the lease is a financial obligation, do your due diligence on :

1 The owner having title and the lease valid;

2. The creditworthiness of the tenant;

3. Sales of the business (ability to pay);

4. Right to assign the lease

You're factoring the lease, loaning against the lease with an assignment of rents. See your attorney! :) 

Hi Joseph,

There are a ton of variables with NNN.

The Pizza Huts can be cheap in acquisition costs but there is also great risk with restaurants. In NNN it's one of the most asset types that defaults and goes dark.

So I would only look at buying one of those under certain conditions with rent increases, lease guarantee, and cap rate to start versus what it blends out at for the end of the primary term.

You need to watch out for what I call "transactional only brokers". They are just trying to sell whatever listing the seller has given them to talk you into buying it. They will not generally point out the downfalls of the investment. With my clients we work through the positives and the negatives to see if the property fits into the overall strategy for the long term.

Pizza Hut you will be looking at 4 levels from worst to best for income stream security with the lease.

1. Corporate YUM brands absolute guarantee. ( thousands of stores guaranteeing that location etc.)

2. Subsidiary of parent corp. YUM ( usually a 100 stores for that state or a couple of states etc.)

3. large established franchisee with 20 to 100 stores and decades in the business.

4. Small franchisee with one to maybe two stores just getting going.

At each level there are different metrics that need consideration when evaluating. I was in the restaurant industry for decades before getting into real estate. I worked for Dominos and one of the largest and successful franchisees in the nation. He was actually Dominos founder Tom Monoghan's  right hand guy while Dominos was growing strong back in the 80's. I was store manager and then went out and opened my own carryout / delivery pizza place.

When it comes to the food business especially pizza places I have everything down to a science.

The transactional brokers do not generally have the investor side with the experience.

Single tenant net lease is frothy right now. Best value was 2 to 4 years ago. Many of my clients are going after multi strip NNN. Much better cap and diversified risk with multiple tenants and breakeven occupancy servicing the mortgage.

Just do not drink the cool aid of a slick talking salesman. Weigh heavily the experience of the people you are talking to and their motive to help you before working with them. 

I have no problem telling people after talking on the phone if another investment type is better for them than NNN etc. to go do that.

Thanks everyone for the advice and assistance with the NNN. I am luck on this one, the company we are using for the purchase does a great deal of business with my wife's aunt and the do not want to let her down or piss her off.

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