www.HasslefreeCashflowInvesting.com                             Intro to NNN                                Investing     ...
www.HasslefreeCashflowInvesting.com                                  Today’s VIPs                    (very important point...
www.HasslefreeCashflowInvesting.com                                      Disclaimer                                 This i...
www.HasslefreeCashflowInvesting.com                   Profit     ROI =           (Money + Time + Hassle)               We a...
www.HasslefreeCashflowInvesting.com               Real Estate Profit Centers  •Cash throw off (aka cashflow)  •Equity growth...
www.HasslefreeCashflowInvesting.com                 Cash Throw Off                       from                   Rental Inc...
www.HasslefreeCashflowInvesting.com                    Equity growth                 from loan amortization
www.HasslefreeCashflowInvesting.com                      Tax savings                    from depreciation
www.HasslefreeCashflowInvesting.com                          Equity growth                          from appreciation     ...
www.HasslefreeCashflowInvesting.com                  CAP = NOI / Price                     10 CAP = $10,000 NOI / $100,000...
www.HasslefreeCashflowInvesting.com                                       NOI    CAP =                                    ...
www.HasslefreeCashflowInvesting.com                                          NOI  PRICE =                                 ...
www.HasslefreeCashflowInvesting.com                                           NOI  PRICE =                                ...
www.HasslefreeCashflowInvesting.com                   Equity growth                  from rent increases                  ...
www.HasslefreeCashflowInvesting.com                                                      NOI  PRICE =                     ...
www.HasslefreeCashflowInvesting.com                                      Arbitrage                 CAP Rate > Interest Rat...
www.HasslefreeCashflowInvesting.com                        Equity growth                      from Lease Renewal          ...
www.HasslefreeCashflowInvesting.com                       Equity growth                        from increase in           ...
www.HasslefreeCashflowInvesting.com                   Forced Equity from                     improved tenancy             ...
www.HasslefreeCashflowInvesting.com            Evaluating A NNN
www.HasslefreeCashflowInvesting.com                                          ReleasingTenant & industry                   ...
www.HasslefreeCashflowInvesting.com                          Durability of Income                              determines ...
“Net Leased Family Dollar”       Chattanooga, TN
Property Information    High Visibility Location    Strong Traffic Counts    Net Leased Asset - Minimal    Owner Respon...
Geographic InformationChattanooga is located in the heart of the southeast, centrally located between other major cities s...
Family Dollar - Chattanooga
Financial InformationPurchase Price:           $678,000  Gross Rent:             $56,000     Vacancy                $0  Ma...
Financing Information Purchase Price         $678,000 Down Payment             15% Down Payment           $101,700      Lo...
How can I make moneywith this property ?•   Rental income: creates monthly spendable cashflow•   High leverage: 85% LTV at ...
NN Lease Post Office      “mail box money”
Property Information    Leased till 1/31/17    Highest producing post office    in county    Located in central busines...
Will the post office go out of business?The USPS employs over 574,000workers and operates over 218,000vehicles.The USPS is ...
Financial InformationPurchase Price:           $525000  Gross Rent:             $51000     Vacancy                $0  Mana...
Financing Information Purchase Price          $525000 Down Payment             25% Down Payment            $131250      Lo...
How can I make moneywith this property ?•   Rental income: creates monthly spendable cashflow•   Commercial Financing: 75% ...
www.HasslefreeCashflowInvesting.com                         If you have interest in acquiring income property,            ...
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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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Introduction to NNN Lease Commercial Real Estate Investing

  1. 1. www.HasslefreeCashflowInvesting.com Intro to NNN Investing Professional Investor David Campbell Founder of Hassle-Free Cashflow Investing David@HassleFreeCashflowInvesting.com (866) 931-9149 Ext. 1
  2. 2. www.HasslefreeCashflowInvesting.com Today’s VIPs (very important points) • CAP = NOI / PRICE • How to make money in commercial real estate • Spotting a good deal • Case study
  3. 3. www.HasslefreeCashflowInvesting.com Disclaimer This is NOT legal, tax or investment advice. No agency created. Educational only. Consult your advisor.
  4. 4. www.HasslefreeCashflowInvesting.com Profit ROI = (Money + Time + Hassle) We all want more profit with less invested
  5. 5. www.HasslefreeCashflowInvesting.com Real Estate Profit Centers •Cash throw off (aka cashflow) •Equity growth from loan amortization •Tax savings from depreciation •Equity growth from appreciation (CAP Compression) •Equity growth from rent increases (income/CAP) •Arbitrage (CAP > Interest Rate) •Equity growth from Lease Renewal •Equity growth from increase in Tenant’s credit •Forced Equity from change of use /development
  6. 6. www.HasslefreeCashflowInvesting.com Cash Throw Off from Rental Income
  7. 7. www.HasslefreeCashflowInvesting.com Equity growth from loan amortization
  8. 8. www.HasslefreeCashflowInvesting.com Tax savings from depreciation
  9. 9. www.HasslefreeCashflowInvesting.com Equity growth from appreciation (CAP Rate Compression)
  10. 10. www.HasslefreeCashflowInvesting.com CAP = NOI / Price 10 CAP = $10,000 NOI / $100,000 PRICE
  11. 11. www.HasslefreeCashflowInvesting.com NOI CAP = PRICE 10 CAP = $10,000 NOI / $100,000 PRICE As a buyer we want a HIGH CAP as a seller we want a LOW CAP
  12. 12. www.HasslefreeCashflowInvesting.com NOI PRICE = 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. 13. www.HasslefreeCashflowInvesting.com NOI PRICE = CAP $125,000 PRICE = $10,000 NOI / 8 CAP As a buyer we want a HIGH CAP as a seller we want a LOW CAP
  14. 14. www.HasslefreeCashflowInvesting.com Equity growth from rent increases (income/CAP)
  15. 15. www.HasslefreeCashflowInvesting.com NOI PRICE = CAP $125,000 PRICE = $12,500 NOI / 10 CAP As a seller we want more NOI
  16. 16. www.HasslefreeCashflowInvesting.com Arbitrage CAP Rate > Interest Rate 8% RETURN - 5% COS T of BORROWING = 3% PROFIT ON BANK’S MONEY
  17. 17. www.HasslefreeCashflowInvesting.com Equity growth from Lease Renewal Longer term lease = lower CAP
  18. 18. www.HasslefreeCashflowInvesting.com Equity growth from increase in Tenant’s credit Stronger tenant = lower CAP
  19. 19. www.HasslefreeCashflowInvesting.com Forced Equity from improved tenancy or development Higher NOI = Higher PRICE
  20. 20. www.HasslefreeCashflowInvesting.com Evaluating A NNN
  21. 21. www.HasslefreeCashflowInvesting.com ReleasingTenant & industry income potential Lease strength TermFinancing Durability of Cost ofavailability tenant Income improvements Property attributes Demographics for expenses Upside for releasing potential
  22. 22. www.HasslefreeCashflowInvesting.com Durability of Income determines Market CAP
  23. 23. “Net Leased Family Dollar” Chattanooga, TN
  24. 24. Property Information High Visibility Location Strong Traffic Counts Net Leased Asset - Minimal Owner Responsibility Investment Grade Tenant Built In Rental Increases Lease Expiration - 1/31/2020 Family Dollar - Chattanooga
  25. 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. 26. Family Dollar - Chattanooga
  27. 27. Financial InformationPurchase Price: $678,000 Gross Rent: $56,000 Vacancy $0 Management $0 Property Taxes $0 Insurance $0 Maintenance -$1000 HOA / Misc $0 Family Dollar Stock PriceNet Operating Income $55000 CAP Rate 8.11% Family Dollar - Chattanooga
  28. 28. Financing Information Purchase Price $678,000 Down Payment 15% Down Payment $101,700 Loan $576,300 Closing Costs $7,000Total Cash Invested $108,700 Interest Rate 4.75% Loan Term 25 yearsMonthly Payment -$3865.40 NOI $4,583.33 Cashflow $717.93Cash Throw Off 7.9% Family Dollar - Chattanooga
  29. 29. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• High leverage: 85% LTV at historically low fixed rates• Commercial Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation• Built in rent increases force equity• CAP Rate compression• SIMPLICITY!!!• Resume builder / syndication opportunity Family Dollar - Chattanooga
  30. 30. NN Lease Post Office “mail box money”
  31. 31. Property Information Leased till 1/31/17 Highest producing post office in county Located in central business area of rural county Leased with USPS since 1987 Built in 1987 - Build to Suit 4182 sf building on 1.11 acres 36 Parking Spaces Landlord pay roof & insurance New roof in 2009 with warranty
  32. 32. Will the post office 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. 33. Financial InformationPurchase Price: $525000 Gross Rent: $51000 Vacancy $0 Management $0 Property Taxes $0 Insurance -$1,059 Maintenance -$300 HOA / Misc $0Net Operating Income $49641 $12.21 /sf NN CAP Rate 9.46%
  34. 34. Financing Information Purchase Price $525000 Down Payment 25% Down Payment $131250 Loan $393750 Closing Costs $6,000Total Cash Invested $137,250 Interest Rate 5.5% Loan Term 25 yearsMonthly Payment -$2418 NOI $4,137 Cashflow $1719Cash Throw Off 15.0%
  35. 35. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• Commercial Financing: 75% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 39 years• Re-use as medical, professional office, local government, etc.• Substantial CAP Rate compression upon renewal of lease or stability of USPS• Syndication opportunity
  36. 36. www.HasslefreeCashflowInvesting.com If you have interest in acquiring income property, please send an email to David@HasslefreeCashflowInvesting.com and we’ll schedule a free consultation Professional Investor David Campbell Founder of Hassle-Free Cashflow Investing David@HassleFreeCashflowInvesting.com (866) 931-9149 Ext. 1

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