logging in or signing up Triple Net Investing (CBC Group / NNN Investing) tmryan37 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 70 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: December 11, 2010 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Triple Net Real Estate Income Investments : Triple Net Real Estate Income Investments Presented by Ron Filian and Tyler Ryan CBC Group, Inc. This document are original works and owned by the publisher and protected by copyright law. All readers of this document shall comply to the ownership rights of the author. 09/01/2010 What is a Triple Net Investment? : What is a Triple Net Investment? A triple net investment (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.) In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common areas. Ownership of the Real Estate investment receives a monthly income check from rental income and enjoys favorable tax benefits. CBC Group, Inc. www.triplenetinvestors.com Why Real Estate? : Why Real Estate? Investors have come to understand the critical role that diversification plays in creating an efficient investment portfolio. With recent challenges in the market, a number of investors are considering other investment options, such as real estate. Many investors now consider real estate to be the “fourth asset class”, in addition to stocks, bonds and cash. Commercial real estate could be a valuable component of an investment portfolio. CBC Group, Inc. www.triplenetinvestors.com Diversify Your Portfolio : Diversify Your Portfolio Solid returns like a dividend payment or an annuity with total control. No large built in management fees. Investment returns similar to REITS and other large institutional investors. Infinite tax deferral of appreciation gains with qualified 1031 rollovers. CBC Group, Inc. www.triplenetinvestors.com Advantages of NNN Investment Properties : Advantages of NNN Investment Properties CBC Group, Inc. www.triplenetinvestors.com What This Means To You : What This Means To You Ownership Receives a Net Monthly Rental Income check. Tenant Pays the Agreed Upon Rent and Takes Care of All Other Costs Associated With the Upkeep of the Building (including RE Taxes). CBC Group, Inc. www.triplenetinvestors.com NNN Investment Due Diligence : NNN Investment Due Diligence CBC Group, Inc. www.triplenetinvestors.com What is a CAP Rate? : What is a CAP Rate? The Capitalization rate, or Cap Rate, is the ratio used to estimate the value of income producing properties. To calculate the Cap Rate of a given property, you simply take the Net Operating Income (NOI) of a property and divide by the purchase price or value of that property. CBC Group, Inc. www.triplenetinvestors.com Cap Rate Examples : Cap Rate Examples Example 1: A property has a NOI of $140,000 and a value of $1,400,000. What is the cap rate? ANSWER: $140,000 / $1,400,000 = 10% Cap Rate Example 2: A property has a NOI of $245,000 and a Cap Rate of 9.50%. What is the value of this property? ANSWER: $245,000 / .095 = $2,578,947 CBC Group, Inc. www.triplenetinvestors.com Current Investment Opportunities : Current Investment Opportunities Chipotle / $1,333,333 Location: Chicagoland Area 6.75% Cap Rate Price per Square Foot: $601.68 Current Annual Rent: $90,000 Rent per Square Foot: $40.61 Lease Term Remaining: 19 years Lease expiration: 01/30/2029 Rent Increases: 10% every 5 years Building Size: 2,216 Square Feet CBC Group, Inc. www.triplenetinvestors.com Current Investment Opportunities : Current Investment Opportunities Arby’s / $1,018,000 Location: Central Illinois 8.25% Cap Rate Price per Square Foot: $348.75 Current Annual Rent: $84,000 Rent per Square Foot: $28.78 Lease Term Remaining: 20 Years Lease expiration: 09/30/2030 Rent Increases: 10% every 5 years Building Size: 2,919 Square Feet Options: (5) 5 year options CBC Group, Inc. www.triplenetinvestors.com Current Investment Opportunities : Current Investment Opportunities Walgreens / $8,410,000 Location: Chicago 6.60% Cap Rate Price per Square Foot: $671.99 Current Annual Rent: $555,000 Rent per Square Foot: $44.39 Lease Term Remaining: 74 years Lease Expiration: 05/30/2084 LEED Certified Building Size: 12,515 square feet Lot Size: .82 Acres CBC Group, Inc. www.triplenetinvestors.com Current Investment Opportunities : Current Investment Opportunities Dollar General / $1,277,778 Location: Chicago Area 9.00% Cap Rate Price per Square Foot: $136.30 Current Annual Rent: 115,000 Rent per Square Foot: $12.27 Lease Term Remaining: 7 years NN Lease (Landlord responsible for roof and structure) Lease expiration: 05/31/2017 Building Size: 9,375 Square Feet CBC Group, Inc. www.triplenetinvestors.com Who We Are : Who We Are CBC Group is a local multi-disciplinary firm with an integrated approach to financial business services. A trusted resource providing solutions for your business. An independently owned firm, we act as fiduciaries for your business. Experienced professionals with diverse financial backgrounds that collaborate to provide a wide range of services to our clients. CBC Group, Inc. www.triplenetinvestors.com What We Do : What We Do CBC Group, Inc. CBC Group, Inc. www.triplenetinvestors.com Working With Us : Working With Us Licensed Professional team with financial advisory experience. In depth knowledge of the market and industry research on quality national tenants. A proprietary database of active lenders to leverage your investment opportunities. We only work with qualified investors. CBC Group, Inc. www.triplenetinvestors.com The 4 Step Process : The 4 Step Process 1. Pre-Qualify – An in depth review of investor’s profile, personal financial statement and goals for income and risk tolerance. 2. Review Investments – The investor will be provided with a list of pre-screened properties that are matched to their profile. 3. Qualify With Lender – We will package the investor and pre-screened property selections to qualified lenders that offer the best financing options. 4. Letter of Intent – Investor makes offer and we begin the negotiation process. CBC Group, Inc. www.triplenetinvestors.com Contact Us : Contact Us CBC Group (847) 839.8810 Ron Filian (847) 814.8820 ron@triplenetinvestors.com Tyler Ryan (847) 804.4301 tyler@triplenetinvestors.com CBC Group, Inc. www.triplenetinvestors.com You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Triple Net Investing (CBC Group / NNN Investing) tmryan37 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 70 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: December 11, 2010 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Triple Net Real Estate Income Investments : Triple Net Real Estate Income Investments Presented by Ron Filian and Tyler Ryan CBC Group, Inc. This document are original works and owned by the publisher and protected by copyright law. All readers of this document shall comply to the ownership rights of the author. 09/01/2010 What is a Triple Net Investment? : What is a Triple Net Investment? A triple net investment (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.) In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common areas. Ownership of the Real Estate investment receives a monthly income check from rental income and enjoys favorable tax benefits. CBC Group, Inc. www.triplenetinvestors.com Why Real Estate? : Why Real Estate? Investors have come to understand the critical role that diversification plays in creating an efficient investment portfolio. With recent challenges in the market, a number of investors are considering other investment options, such as real estate. Many investors now consider real estate to be the “fourth asset class”, in addition to stocks, bonds and cash. Commercial real estate could be a valuable component of an investment portfolio. CBC Group, Inc. www.triplenetinvestors.com Diversify Your Portfolio : Diversify Your Portfolio Solid returns like a dividend payment or an annuity with total control. No large built in management fees. Investment returns similar to REITS and other large institutional investors. Infinite tax deferral of appreciation gains with qualified 1031 rollovers. CBC Group, Inc. www.triplenetinvestors.com Advantages of NNN Investment Properties : Advantages of NNN Investment Properties CBC Group, Inc. www.triplenetinvestors.com What This Means To You : What This Means To You Ownership Receives a Net Monthly Rental Income check. Tenant Pays the Agreed Upon Rent and Takes Care of All Other Costs Associated With the Upkeep of the Building (including RE Taxes). CBC Group, Inc. www.triplenetinvestors.com NNN Investment Due Diligence : NNN Investment Due Diligence CBC Group, Inc. www.triplenetinvestors.com What is a CAP Rate? : What is a CAP Rate? The Capitalization rate, or Cap Rate, is the ratio used to estimate the value of income producing properties. To calculate the Cap Rate of a given property, you simply take the Net Operating Income (NOI) of a property and divide by the purchase price or value of that property. CBC Group, Inc. www.triplenetinvestors.com Cap Rate Examples : Cap Rate Examples Example 1: A property has a NOI of $140,000 and a value of $1,400,000. What is the cap rate? ANSWER: $140,000 / $1,400,000 = 10% Cap Rate Example 2: A property has a NOI of $245,000 and a Cap Rate of 9.50%. What is the value of this property? ANSWER: $245,000 / .095 = $2,578,947 CBC Group, Inc. www.triplenetinvestors.com Current Investment Opportunities : Current Investment Opportunities Chipotle / $1,333,333 Location: Chicagoland Area 6.75% Cap Rate Price per Square Foot: $601.68 Current Annual Rent: $90,000 Rent per Square Foot: $40.61 Lease Term Remaining: 19 years Lease expiration: 01/30/2029 Rent Increases: 10% every 5 years Building Size: 2,216 Square Feet CBC Group, Inc. www.triplenetinvestors.com Current Investment Opportunities : Current Investment Opportunities Arby’s / $1,018,000 Location: Central Illinois 8.25% Cap Rate Price per Square Foot: $348.75 Current Annual Rent: $84,000 Rent per Square Foot: $28.78 Lease Term Remaining: 20 Years Lease expiration: 09/30/2030 Rent Increases: 10% every 5 years Building Size: 2,919 Square Feet Options: (5) 5 year options CBC Group, Inc. www.triplenetinvestors.com Current Investment Opportunities : Current Investment Opportunities Walgreens / $8,410,000 Location: Chicago 6.60% Cap Rate Price per Square Foot: $671.99 Current Annual Rent: $555,000 Rent per Square Foot: $44.39 Lease Term Remaining: 74 years Lease Expiration: 05/30/2084 LEED Certified Building Size: 12,515 square feet Lot Size: .82 Acres CBC Group, Inc. www.triplenetinvestors.com Current Investment Opportunities : Current Investment Opportunities Dollar General / $1,277,778 Location: Chicago Area 9.00% Cap Rate Price per Square Foot: $136.30 Current Annual Rent: 115,000 Rent per Square Foot: $12.27 Lease Term Remaining: 7 years NN Lease (Landlord responsible for roof and structure) Lease expiration: 05/31/2017 Building Size: 9,375 Square Feet CBC Group, Inc. www.triplenetinvestors.com Who We Are : Who We Are CBC Group is a local multi-disciplinary firm with an integrated approach to financial business services. A trusted resource providing solutions for your business. An independently owned firm, we act as fiduciaries for your business. Experienced professionals with diverse financial backgrounds that collaborate to provide a wide range of services to our clients. CBC Group, Inc. www.triplenetinvestors.com What We Do : What We Do CBC Group, Inc. CBC Group, Inc. www.triplenetinvestors.com Working With Us : Working With Us Licensed Professional team with financial advisory experience. In depth knowledge of the market and industry research on quality national tenants. A proprietary database of active lenders to leverage your investment opportunities. We only work with qualified investors. CBC Group, Inc. www.triplenetinvestors.com The 4 Step Process : The 4 Step Process 1. Pre-Qualify – An in depth review of investor’s profile, personal financial statement and goals for income and risk tolerance. 2. Review Investments – The investor will be provided with a list of pre-screened properties that are matched to their profile. 3. Qualify With Lender – We will package the investor and pre-screened property selections to qualified lenders that offer the best financing options. 4. Letter of Intent – Investor makes offer and we begin the negotiation process. CBC Group, Inc. www.triplenetinvestors.com Contact Us : Contact Us CBC Group (847) 839.8810 Ron Filian (847) 814.8820 ron@triplenetinvestors.com Tyler Ryan (847) 804.4301 tyler@triplenetinvestors.com CBC Group, Inc. www.triplenetinvestors.com