All Forum Posts by: Stephen Masek

I'll be 61 in a few days and now travel outside the USA twice a year.  I am referring to "developed" nations, not places with naked natives and/or dictators.  

Rima and I pay $1,000 per month for health insurance with a high deductible.  It includes all kinds of coverages we do not need nor want (pregnancy - impossible, mental health - not wanted, and so forth).  

Just think about car and home insurance.  Both are essentially mandatory, and both are readily available from numerous sellers competing to offer the best service at the best prices.  For car insurance, their are high risk pools to cover drivers who could not otherwise have insurance.  If everyone was required to have a Health Savings Account from birth, with a major medical policy, insurers were allowed to sell in all states, and we had high risk pools, the problems would go away very rapidly.      

Having a big national / international company as a tenant also means that they have far more lawyers than we "little fish" investors.  If they fail to maintain the building, the only option is to sue them.  

I recently hard about Delaware Statutory Trusts (DSTs). They work for 1031 exchanges, and provide a way to have fractional ownership of one property, or a portfolio of properties. Some are for NNN properties. For smaller investors taking care to not have too many eggs in one basket, investing in several different DSTs may be much better than investing in one NNN.

Have you invested in a DST or DSTs? Rima and I recently discovered them. For "little fish" with just a few million to invest, they seem far better than buying one or a few NNN properties, which puts all of your eggs in one or a few baskets.

I wonder what other businesses Home Depot will be / is trying to enter?

A few months ago, at the Environmental Information Association convention in San Diego, we met a man from Home Depot looking for consultants to help with asbestos, mold, and lead.  He was unwilling to pay enough to be worth further discussion, and the company I own is a small low-overhead company, (now in our 27th year) able to offer excellent prices.

We are selling a house in Indiana and received an "inspection" report from Home Depot.  Even though the paint and carpet are brand new, installed just before it was listed, it states they need to be replaced.   Even though the water heater is only five years old, it states that it has zero remaining life and needs to be replaced.     They even pick on the stainless steel refrigerator bought in 2013, trying to say a larger model is needed.  These are just four items on a long list.   Perhaps this is just one Home Depot in one location, but it could also be a national problem.    

Have you seen any such stuff?

A good environmental consulting company can help by providing things such as a mold survey of the unit (before she moves in).  You could also have them test for fine dust levels, even VOCs.  Then give her the report with a long list of findings showing no problems.  Yes, you will need to spend $1,000 - $3,000.  Without data, you are open to all kinds of baloney and tricks.  The company I own provides those services, but not on such a small one-time project far from us, but you will find many consultants in northern CA who can help.  

Who on this site has current NNN experience? Rima and I are considering investing in some NNN properties, as we are selling 14 appreciated SFRs (owned outright). It seems that the power difference between a big national company with a platoon of lawyers and an investor who has one or a few NNN properties is a major factor to consider. If they do not properly maintain the building, it may be necessary to sue them. It would be wonderful to speak with NNN owners and compare notes on how well various tenants comply with lease obligations.

I helped write the ASTM E2018 standard for property Condition Assessments which first came out in 1999, and my company also provides a full range of environmental consulting services (Phase I, asbestos, mold, lead PCBs and so forth).

One of the things I've come to enjoy in California are Korean Spa-Sauna facilities.  Guess what, there are very nice ones elsewhere, including two huge ones in Dallas (King Spa and Spa Castle).   

Many people I meet are apprehensive about the actions of the leftist politicians in California.  If they remove Proposition 13 protections for commercial real estate and impose rent control on all rentals, there will be massive job losses and traffic jams of people moving east.   Don't think it can happen?  Venezula was a much nicer place just a short time ago....