Introduction to NNN Lease Commercial Real Estate Investing

Download Introduction to NNN Lease Commercial Real Estate Investing

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Introduction to nnn commercial real estate investing webinar. You can watch this presentation here: http://youtu.be/vjfgS3q_4yc Find great videos on real estate investing and real estate investing opportunities on our website: http://www.Hasslefreecashflowinvesting.com

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<ul><li>1.www.HasslefreeCashflowInvesting.com Intro to NNNInvestingProfessional InvestorDavid CampbellFounder of Hassle-Free Cashflow InvestingDavid@HassleFreeCashflowInvesting.com(866) 931-9149 Ext. 1</li></ul> <p>2. www.HasslefreeCashflowInvesting.comTodays VIPs(very important points)CAP = NOI / PRICEHow to make money in commercial real estateSpotting a good dealCase study 3. www.HasslefreeCashflowInvesting.comDisclaimer This is NOT legal, tax or investment advice.No agency created. Educational only. Consult your advisor. 4. www.HasslefreeCashflowInvesting.com Prot ROI = (Money + Time + Hassle) We all want more prot with less invested 5. www.HasslefreeCashflowInvesting.com Real Estate Prot CentersCash throw off (aka cashow)Equity growth from loan amortizationTax savings from depreciationEquity growth from appreciation (CAP Compression)Equity growth from rent increases (income/CAP)Arbitrage (CAP &gt; Interest Rate)Equity growth from Lease RenewalEquity growth from increase in Tenants creditForced Equity from change of use /development 6. www.HasslefreeCashflowInvesting.com Cash Throw Off from Rental Income 7. www.HasslefreeCashflowInvesting.comEquity growth from loan amortization 8. www.HasslefreeCashflowInvesting.comTax savingsfrom depreciation 9. www.HasslefreeCashflowInvesting.comEquity growthfrom appreciation (CAP Rate Compression) 10. www.HasslefreeCashflowInvesting.comCAP = NOI / Price 10 CAP = $10,000 NOI / $100,000 PRICE 11. www.HasslefreeCashflowInvesting.com NOICAP =PRICE10 CAP = $10,000 NOI / $100,000 PRICEAs a buyer we want a HIGH CAP as a seller we want a LOW CAP 12. www.HasslefreeCashflowInvesting.comNOIPRICE =CAP $100,000 PRICE = $10,000 NOI / 10 CAP As a buyer we want a HIGH CAP as a seller we want a LOW CAP 13. www.HasslefreeCashflowInvesting.com NOIPRICE = CAP$125,000 PRICE = $10,000 NOI / 8 CAPAs a buyer we want a HIGH CAP as a seller we want a LOW CAP 14. www.HasslefreeCashflowInvesting.com Equity growthfrom rent increases(income/CAP) 15. www.HasslefreeCashflowInvesting.comNOIPRICE =CAP$125,000 PRICE = $12,500 NOI / 10 CAPAs a seller we want more NOI 16. www.HasslefreeCashflowInvesting.comArbitrage CAP Rate &gt; Interest Rate 8% RETURN - 5% COS T of BORROWING = 3% PROFIT ON BANKS MONEY 17. www.HasslefreeCashflowInvesting.comEquity growthfrom Lease RenewalLonger term lease = lower CAP 18. www.HasslefreeCashflowInvesting.com Equity growthfrom increase in Tenants credit Stronger tenant = lower CAP 19. www.HasslefreeCashflowInvesting.com Forced Equity from improved tenancyor developmentHigher NOI = Higher PRICE 20. www.HasslefreeCashflowInvesting.comEvaluating A NNN 21. www.HasslefreeCashflowInvesting.comReleasingTenant &amp; industryincome potential LeasestrengthTermFinancing Durability ofCost ofavailability tenantIncomeimprovements Property attributes Demographics for expenses Upside for releasingpotential 22. www.HasslefreeCashflowInvesting.comDurability of IncomedeterminesMarket CAP 23. Net Leased Family Dollar Chattanooga, TN 24. Property InformationHigh Visibility LocationStrong Traffic CountsNet Leased Asset - MinimalOwner ResponsibilityInvestment Grade TenantBuilt In Rental IncreasesLease Expiration - 1/31/2020 Family Dollar - Chattanooga 25. Geographic InformationChattanooga is located in the heart of the southeast, centrally located between other major cities such as Nashville, Huntsville, Birmingham, Atlanta, Knoxville, Ashville, Columbia, and Charlotte. Family Dollar - Chattanooga 26. Family Dollar - Chattanooga 27. Financial InformationPurchase Price: $678,000Gross Rent: $56,000 Vacancy$0Management$0 Property Taxes $0Insurance $0Maintenance-$1000 HOA / Misc $0 Family Dollar Stock PriceNet Operating Income$55000CAP Rate 8.11% Family Dollar - Chattanooga 28. Financing Information Purchase Price $678,000 Down Payment 15% Down Payment $101,700Loan$576,300 Closing Costs $7,000Total Cash Invested $108,700Interest Rate 4.75% Loan Term 25 yearsMonthly Payment -$3865.40 NOI$4,583.33Cashflow $717.93Cash Throw Off7.9%Family Dollar - Chattanooga 29. How can I make moneywith this property ? Rental income: creates monthly spendable cashow High leverage: 85% LTV at historically low xed rates Commercial Loan Amortization: tenants pay down mortgage Tax Benets: depreciation Built in rent increases force equity CAP Rate compression SIMPLICITY!!! Resume builder / syndication opportunityFamily Dollar - Chattanooga 30. NN Lease Post Officemail box money 31. Property InformationLeased till 1/31/17Highest producing post officein countyLocated in central businessarea of rural countyLeased with USPS since 1987Built in 1987 - Build to Suit4182 sf building on 1.11 acres36 Parking SpacesLandlord pay roof &amp; insuranceNew roof in 2009 withwarranty 32. Will the post ofce go out of business?The USPS employs over 574,000workers and operates over 218,000vehicles.The USPS is the operator of the largestvehicle fleet in the world.The USPS traces its roots to 1775during the Second ContinentalCongress, where Benjamin Franklinwas appointed the first postmastergeneral.The USPS is legally obligated to serveall Americans, regardless of geography,at uniform price and quality. 33. Financial InformationPurchase Price: $525000Gross Rent: $51000 Vacancy$0Management$0 Property Taxes $0Insurance -$1,059Maintenance-$300 HOA / Misc $0Net Operating Income$49641 $12.21 /sf NNCAP Rate 9.46% 34. Financing Information Purchase Price$525000 Down Payment 25% Down Payment$131250Loan $393750 Closing Costs $6,000Total Cash Invested $137,250Interest Rate 5.5% Loan Term 25 yearsMonthly Payment-$2418 NOI $4,137Cashflow$1719Cash Throw Off15.0% 35. How can I make moneywith this property ? Rental income: creates monthly spendable cashow Commercial Financing: 75% LTV at historically low xed rates Loan Amortization: tenants pay down mortgage Tax Benets: depreciation over 39 years Re-use as medical, professional ofce, local government, etc. Substantial CAP Rate compression upon renewal of lease orstability of USPS Syndication opportunity 36. www.HasslefreeCashflowInvesting.com If you have interest in acquiring income property, please send an email toDavid@HasslefreeCashowInvesting.comand well schedule a free consultationProfessional InvestorDavid CampbellFounder of Hassle-Free Cashflow InvestingDavid@HassleFreeCashflowInvesting.com(866) 931-9149 Ext. 1 </p>

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