Tag Archives: Triple Net Lease

Considering The Possibilities Of Commercial Investing As A New Career

Posted on by Nathan Diones

When looking into commercial investments it can easily become a daunting undertaking. As a novice or real estate outsider it can seem that the odds are stacked in the favor of those with the experience behind them. However, while there is certainly a learning curve, it is absolutely something one can master with a little bit of dedication and thorough homework. For instance, take a look at the case of a recent purchase of a Dollar Thrifty Rental Car operation out of Fort Lauderdale, Florida.

Dr. Selvin Passen previously had a successful career as a medical doctor of pathology. He is now known as a successful commercial real estate investor. After retiring from medicine Dr. Passen, with the help and vision of a co-investor, began investing in marinas. This business decision proved to be a smart and very lucrative one. He is now known as a lead investor within marinas all around the state of Florida. Through a series of wise investments and equally wise business partners this practitioner of medicine is now a well-respected investor. His story is one of many which allows those of us with some trepidation, and also interest in commercial real estate arena, to see that it is absolutely feasible to become highly successful.

Boat Marina Investing

                                                          Boat Marina Investing

To continue with the inspiring tales of a doctor-turned-commercial-investor, let us look ahead into one of his most recent purchases. It was recently published that Dr. Passen has made the purchase of a Dollar Thrifty Rental Car operation. This property was last traded in 2003 for 5.45 million dollars. Dr. Passen’s management team purchased this property on his behalf for just at $10.5 million. In just over a decade this property’s value has doubled in value! Dr. Passen and his team of managing investors sees the great value in this property to add to his already impressive portfolio. Revisiting the importance of location with any kind of real estate investment, his investment will surely prove to be a wise choice in years to come. Florida continues to be an extremely popular tourist destination. What better investment could there be than a rental car facility next to a busy airport? Excellent strategy along with a team of dedicated investment advisors is a win-win strategy for sure. This is just another example of how someone who had a dedicated and successful career elsewhere became a savvy commercial real estate investor.

Real estate is one of the smartest investments you can make. The more you learn the smarter your investment decisions. Better investment choices means a greater return on investment. You too could join the ranks of those enjoying a second career that is often less time-consuming and stressful, and also more financially rewarding, than your previous career. If you are retired or considering retiring but don’t want to quit working and making money, then you might

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Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Why To Invest In Real Estate?

Posted on by Nathan Diones

Why you should invest in real estate? Is it, your passion or just you need to buy property for tax reasons! Here are the reasons below that will make you clear with the concept of why to invest in property rather than any other assets. Property investment is a way to go long.

Apartment Building Investment Offering Long Term Wealth

Apartment Building Investment Offering Long Term Wealth

Here they are……

  • Portfolio Diversification That Minimizes Risk: With the investment in property, you minimizes the risk with the portfolio diversification. Buying property near your principle place is really a good idea, as by this you would be able to keep an eye on the tenants. Another reason, being known to the place and moreover you can rent it to someone known.

But, when the question comes upon the risk of diversification, you need to think like this.

The principle place where you are residing, if it is at risk and you have bought another property at that place, then not only the new one is at risk, but the old property also. People who, wish to overcome through this risk factor, needs to consider things ass given below:

  1. Make purchase of property in different state or city
  2. Within different areas and price ranges
  3. Need to use different investment strategies
  • Value of Tangible Assets: Real estate and share, two terms, are one of the most important investment areas for some people. Yeah! These should be considered for the long term investments. But, there is a huge difference between the amount required for starting it. When an investor needs to buy shares, he can buy it with few hundred dollars, but when the question is about buying a property, one has to investor has to make hundreds of thousand dollars. For this, you need to find an investor that can help you out in generating maximum benefits with the minimum risk factor. And Regioncy will be perfect choice when you plan out investing in the property. A stock market carries risk along with it, it can completely volatile or make you touch the sky. But, risk is just parallel to it. But, when compared to the investment in the property, it has capital growth & minimum risk with huge benefits like: rental income is consistent, advantages in tax, bricks & mortar security, total control on investment. This, complete specifies the fact, that property is tangible and you are always aware of the condition of your property & can make changes accordingly.
  • Rental Return Income: So, what the objective of buying a property? Simply, that it can achieve wealth for you somehow. You might be aware of the fact that, for every investor, rental income is important, so as to return the mortgage loan or medium to meet any other property expenses.
  • Capital Growth Is For Long-Term: For the property investor, this investment is carried as a steadfast return of the investment in the coming future. Over the period of time, property investment increases the capital growth for sure.
  • Are you Aware Of The Fact, What Things Drives Capital Growth Of Property?: Capital growth of property relies on few points, which are listed below:
  1. Location
  2. Size of the property
  3. Development of the area where the property is
  4. Sales value of the surrounding areas
  5. Population residing in that area
  6. Wage level of the property
  • Benefits in Tax: The good thing about investing in a property is that, there are various tax benefit upon buying. The deductions for which you claim upon taxes by buying a property are as follows:
  1. Interest, on which you have borrowed money for buying a property.
  2. Tenancy cost, the cost paid to the property managers for advertising your property.
  3. Maintenance & Repair, the cost for the maintenance & repair for restoring the items and goods, such as kitchen renovation.
  4. Cost Holding: This is the cost that includes the money upon buying a property, which also includes corporate fee, gardening cost, contents insurance, pest control and building cost. These   are tax deductible costs.

Always talk to your accountant to ensure you are claiming your maximum legal entitlement when it comes to tax time.

 These reasons, will help you out while you invest in property for making a right decision in the whole journey. By this, you will avoid costly mistakes and will reach your financial goals sooner than you expected.

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Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Is investing in Commercial Real Estate right for you?

Posted on by Nathan Diones

Whether you are highly experienced in the realm of residential properties or you are new to real estate investing altogether, there are a few important considerations to keep in mind when dealing with buying and owning commercial real estate properties.

Net leased Jiffy Lube

Net leased Jiffy Lube

The first, and arguably most important, factor to consider is the property’s earning potential. A wise commercial investment can yield a far greater return than even multiple residential properties. The keyword here to note is “wise.” You’ll find that there are more complex details upfront, so it is important to make sure you do thorough research.

During your research you’ll find that calculating the valuation of a potential commercial property can be a bit more complicated than residential. You should become familiar with your market cap rate values and understand that this is a factor you can influence within your property. So it is something you can make work to your benefit. This is in contrast to residential properties, which often fluctuate in price. If you’re a homeowner you probably understand the emotional component at play here. Residential valuation tends to be much more subjective.

Some other vitally important differences in the two markets are the leasing structure and symbiotic business relationship at play in commercial real estate. Again, this can be a bit more complex on the commercial side, but it is something that can be an asset in the right hands. For instance, one way to increase the value of your property is to find tenants that are low-risk, long-term, and a good fit for your commercial building. There is more flexibility in the leasing terms for commercial property.

In this context the symbiotic business relationship means that both the property owner and tenant have a vested interest in the financial success of the property. As any residential property owner can tell you, this is not often the case with rental properties. The commercial property owner usually only pays for the mortgage of the building while the tenants maintain the integrity of their leased space. These are major contributing factors as to why there tends to be a great deal more stability within the world of commercial property.

Retail Strip Center For Sale

Retail Strip Center For Sale

Another desirable attribute of commercial property is that most businesses close at night and have fewer after-hours emergencies. This is another way in which it is a stark contrast to the unpredictable issues arising at a place of residence. Many commercial property owners even outsource their maintenance or other managerial aspects of running their building to a property management company. If you’re too busy to dedicate the time to run a commercial property it might be wise to look into this option. In this way you can further simplify your investment with peace of mind.

As you can see, doing your homework on the front end could ultimately result in some major financial gains for you as an investor. Commercial real estate is certainly not for everyone, but if you are willing to put in the time and effort to make a sound investment there is a lot of money to be realized, on both rental income and property appreciation.

 

 

Regioncy Banner LogoBased in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Triple Net Lease Market Is Nearing Perfection

Posted on by Nathan Diones

While triple net lease (NNN) properties still continue to break prerecession prices, investors’ appetites for NNN properties continue drive up prices and compress cap rates to new historical all-time lows.

Recently Closed Dollar Tree at 5.25% Cap Rate

Recently Closed Dollar Tree at 5.25% Cap Rate

Business Is Good

With cap rates being compressed by higher demand than the market can supply, net leased properties such as JPMorgan Chase, Dollar Tree, McDonald’s, Walgreens and many alike are experiencing new all-time low cap rates in the low 4% or 5% range, according to Nathan Diones, Broker and president of Regioncy Real Estate, a commercial real estate brokerage, based in Yucaipa, CA.

With the looming threat of interest rates on the rise, investors have been gobbling up all types of net leased products consisting of retail, office and industrial.   If the Feds decide to raise interest rates prior to the end of 2015, we could see a pullback on sales until the market adjusts to the new rates.

Regioncy offers both buyer & seller representation for Net Leased Property (NNN).