How to Invest in NNN Properties With Randy Blankstein

[@arnoldrodriguez3803]

I’ve been in NNN real estate since 2005. Five properties leased to 7-11, no better way to grow wealth. Great content

[@TylerCauble]

They’re great assets! We’ve sold a bunch of them over the years and the benefits are outstanding

[@IWBVS]

So with NNN, you only get to write off depreciation since the tenant covers everything else? Debating whether to exchange our 15 unit multi family to NNN out of state. Slightly less cashflow but less headache

[@arnoldrodriguez3803]

@@IWBVS yes absolutely no landlord involvement. Occasionally I walk the properties, fill the tank and buy a Big Gulp. Also in my case they perform all upgrades on building and equipment. Last year they replaced a total of 14 MPD gasoline dispensers each valued at approximately $25k, all signage and graphics on the exterior at their cost. When they took over the properties they gutted the interiors and installed all new fixtures, kitchen equipment, flooring and refrigeration.

[@IWBVS]

@@arnoldrodriguez3803 are these 5 all single tenant? I'd be interested in a small commercial strip where a 7-11 type NNN tenant will build a pad at the corner. Do they tend to renew when it comes within like 5 years of expiring?

[@arnoldrodriguez3803]

@@IWBVS yes all are single tenant 7-elevens. We have a 40 year lease, first renewal was at 10 years after that every 5 years. They have always renewed. We are on hard corners with heavy traffic counts and good mix of residential, commercial surrounding us. We have one location across the street from the community college and regional airport so lots of hungry mouths to feed.

[@zkon28]

Criminally under viewed interview. Great info and always great to see sincere respect from an interviewer for the guest.

[@TylerCauble]

You're too kind! I appreciate that

[@thebestken]

How will a NNN with cap rate of 4 will be wise investments when loan is for 7%? Please guide.

[@TylerCauble]

It's not - it's very tough to buy a 4% cap rate with 7% debt, which is why most of those buyers are using all cash right now

[@gedward86]

There’s always an exception to how fast you can grow and reap rewards in any business. In regard to CRE, Matt Onofrio has crushed it in 3 short years. My stance is mindset

[@Fancis67]

Exactly. Matt Onofrio story is inspiring really. It's all in the mindset

[@WillBockovenCRE]

Great interview Tyler

[@TylerCauble]

I appreciate it, Will 🤙🏼

[@tedbauer7380]

Thanks for the interview. More transactions by the numbers please.

[@TylerCauble]

Haha absolutely! We're looking at stepping up our interview / conversation side of the show here soon

[@LaddDentalGroup]

Love NNN opportunities!!

[@TylerCauble]

It’s a fun side of CRE to be in, for sure

[@khaleefax9553]

*Where do you find McDonald's Triple Net lease available properties?*

[@TylerCauble]

They can be somewhat rare since corporate owns most of their locations, but their are several resources out there that could help you find the right site. I'd start with a nnn sales broker like someone on our team at The Cauble Group or start with a google search

[@thebestken]

Can you depreciate NNN property?

[@JustinShanholtzer]

Yes as long as it isn’t a ground lease.

[@TylerCauble]

Yes, you can. You could do accelerated depreciation with a cost segregation study, as well. Just need to make sure you own fee simple title and not leasehold

[@Ricocase]

If they don't renew, which building type is the easiest to backfill? How can investors determine renewal likelihood before buying? Hearing 35% down now.

[@TylerCauble]

Tough to say - any kind of property could be the easiest to backfill and any kind could be the worst. There are many factors that play into it, including location, condition of the building, asking rents, etc.

[@RobertMZeff]

Awesome guys thx you.

[@TylerCauble]

Absolutely