How would you like to own a Taco Bell, 7-Eleven or Dollar General? We’re not talking about running a franchise or branch, but investing in single tenant net lease properties, otherwise known as a triple net lease. Dwaine Clarke focuses on triple net leases and has completed over $150M in transactions since 2012. He shares some of the differences of investing in triple net lease properties compared to multifamily, how to conduct market research, and how to evaluate credit risk for these retailers.
Partner: Download a Free Sample Apartment Deal Package
Key Insights
Large companies often lease retail locations and cover all expenses and taxes
Commercial leases are long term – 15-30 years with renewals built in
Downside: minimal upside and only one tenant
Mitigate risks by selecting great locations with high traffic, strong jobs, and solid household income
Places where e-commerce is less of a threat (salons, entertainment, etc.)
Monitor retail settings – high traffic, highway visibility, population, and household income
Lower return expectations with 4% – 6.75% cap rates
Ideal for investors not interested in real estate or with a lower risk tolerance
Corporate, Institutional, Franchise levels of commercial
Corporate – privately-owned, but large firms; Institutional – publicly traded, large firms; Franchise – smaller, privately-owned
S&P, BBB, Moody’s resources to check credit rating and credit profile
When a tenant leaves, the new tenant is usually responsible for the build-out of the new space
Bull’s Eye Tips:
Failure for Future Success:
Started flipping houses and did not go well
Most Recommended Book:
Winning Through Intimidation by Robert Ringer
Million Dollar Habits by Robert Ringer
Most Recommended Digital/Mobile Resource:
Asana
Daily Habit
Waking up between 4 – 4:15am
Wish I Knew Last Year
Networking on a high level – traveling for event, podcasting
Real World Advice
Be ready to adjust and subscribe to audio university
Advice to Ignore
The negative people
Current Curiosity
Learning more and being open – parenting and family relationships
Best Place to Grab a Bite
Bar Taco, Flemings – West Hartford, CT
Resources:
Free Copy of Real Estate Mailbox Money
Connect with Dwaine:
Social Media: Dwaine Clarke
Website: BuyNNNProperties.com
Leave us a review and rating on Apple Podcasts or Spotify. Be sure to check out more info at TargetMarketInsights.com.
