All Forum Posts by: Account Closed

I've used this method to find and contact owners of retail properties and shopping centers:

- Identify the APN # of a shopping center using the county assessors page.

- Find the entity (LLC, LP, Trust) that the property is owned under

- use the state entity search to find the managers/partners of the entity

- Google the managers name / or use peoplefinders.com to find a phone number.

- Contact owner/partner and tell them your story...

Technically, this is not a cold call because you have information that pertains to their situation. Not all are interested in hearing what you have to say, yet it's still quite common to find an investor interested in entertaining offers for their properties. I've used this for finding buyers and sellers of fast food NNN properties and some smaller shopping centers with investment grade tenants.

You have leverage in telling your story, representing investors with deep pockets that can close quick. A property owner wouldn't be wise to pass on hearing what you have to say.

If you or any of your friends or partners have CoStar, I would highly suggest asking them for help in research!

Jon, from what I've seen this is definitely for the more savvy investor where capital reserves are of the utmost importance in order to service the debt in case of tenant vacancy. As you have stated I have only heard of investing in zeroes to offset any income with a depreciable asset. With capital reserves in place, would this be a viable way to build a portfolio?

Bryan, In terms of cash flow it almost like a zero coupon bond. Later down the road you do have to worry about things like phantom income, however it would be very difficult to find these properties at a discount.

My goal would be to have my dollar work as hard as possible. leveraging the tenants credit rating to have the building free and clear at the end of the term.

15-25 years is along time to tie up capital. My question to you is what other investment alternatives would you suggest?

Thank you all for you replies and insight

-Andrew

Lately I've been doing a lot of research on Zero Cash flow properties. Where an investor purchases a property with an investment grade tenant (Walgreens, CVS, Jack in the Box, etc.) with a small down payment (12-15%) and uses 100% cashflow generated to pay off the note (hence, zero cash flow). At the end of the term, the investor owns the Walgreens free and clear and would possibly renew the lease or 1031 to another property.

I know this defeats the purpose of investing for cash flow. However, for a younger investor, this seems like a great way to build a portfolio. I find it more than risky considering factors such as tenant default (ex. Rite Aid Bankruptcy), time value of money, Inflation (due to fixed rent rate), etc. I have heard of people doing this, but nothing specific.

Has anyone here had experience investing in zeros? I would love to hear any and all insight and experience.

Thanks in advance,

Andrew

I've been doing some research on local area clubs online and have found most clubs have stopped meeting or have outdated information online.

Is any one a member or know of a REI club in the Las Vegas area? Any answers/advice would be appreciated.

Thanks,

Andrew Fehrman