Single Tenant Triple Net (NNN) Properties

On this week’s podcast we talk with Alan Fruitman about single tenant triple net (NNN) leased properties. A NNN lease helps minimize the responsibilities for the investor since the tenant agrees to pay all the expenses of the property including the real estate taxes, building insurance, and maintenance.

A very interesting discussion that emerged from this episode is the current administration’s proposal to cut 1031 exchanges, which would be a tremendous blow to real estate. If Capitol Hill eliminates the 1031 Exchange, this will have a dramatic and negative affect on real estate as this would decrease proceeds by almost 50%. As a consequence, Alan predicts a heavy volume of real estate transactions in Q3 and Q4 as investors are trying to get their sale and 1031 exchange in before the end of 2021.

Key Discussion Points

[01:04] Opening remarks by Eric Odum and Steven Silverman

[04:55] About our guest: Alan Fruitman

[06:00] How did you get started in the single tenant world?

[07:23] What is Triple Net and Doubl Net?

[10:30] Overview of single tenant market

[12:38] What would you advise for a buyer of a single tenant property?

[20:57] How are you finding value in this tough market / which regions are hot markets?

[25:53] What are your thoughts on the medical triple net market?

[32:20] Tell us your thoughts on Capitol Hill potentially eliminating the 1031 Exchange and it’s affect on real estate

[42:36] How can folks contact you?

[43:30] Over the last 2 years, what cap rates have you seen on single tenant deals (i.e. Walgreens, CVS, etc..)?

[47:11] Closing comments by Eric & Steven

About our Guest

Alan Fruitman is the president and managing broker of 1031tax.com. Alan specializes in helping investors purchase single tenant NNN properties nationwide. He is the author of The NNN Triple Net Property Book: For Buyers of Single Tenant NNN Leased Property.

CONTACT INFO

Phone: 1-800-454-0015
Website: 1031tax.com

Lawfare: Mortgage Satisfaction

Eric Odum tells the real life ongoing story about a borrower and a private lender, and the importance of ensuring that when a loan is paid off, that the mortgage satisfaction has actually been recorded. In this case, the borrower wanted to sell his property. However, although the borrower had paid off the mortgage to a private lender 16 years ago, and the lender supplied a satisfaction of mortgage to the borrower, it was never filed. The borrower did find the mortgage satisfaction document, but the title company said it was not sufficient satisfaction and they would need to issue a new document, and to make matters worse, the lender did not remember the transaction.

The bottom line is this: When you pay off a mortgage, always ensure that the satisfaction of mortgage has been recorded and filed.