Investment Opportunities

9.7% Cap Rate on a Triple Net Lease – Minimum Investment = $50,000

The following investment opportunity offers a 9.7% cap on a NNN lease.  The sale leaseback concept being employed here has been borrowed from the commercial real estate sector and applied to residential properties.  Below are the terms of the offer as well as relevant background facts:

  • The seller has purchased single-family homes at a steep discount in foreclosure auctions.  They will sell these properties to you at market value.  You may hire an appraiser or one can be referred for you.
  • The selling price of these properties is generally between $50,000 and $70,000 and the properties have been renovated prior to their sale to you.
  • Preferred lenders are available to offer LTV’s of up to 80 or you may use your own financing.  Of course, the use of leverage increases your cash on cash return.
  • The seller will then leaseback the property from you on the following terms:
    • 10 year triple net (NNN) lease.  Pursuant to a NNN lease, the tenant pays not only rent, but is also responsible for the insurance, property taxes, and maintenance of the property.  You are free from all expenses related to the property during the term of the lease.
  • The seller will offer a 9.7% cap rate to calculate the amount of rent they will pay you.
    • You calculate the cap rate by dividing the acquisition cost by the net operating income (NOI).  For example, if you paid $60,000 for the property, you would receive approximately $6,187 in NOI or $515 per month.  Remember, you have no responsibility to pay any other costs because of the NNN lease (unless you have your own mortgage to service).
  • At the end of the ten year term, you may renew the NNN lease.  You also maintain a 60 day right of early termination during the lease.  The seller/tenant may not terminate the lease early.

Dayton, Ohio panorama

The properties are located in the Dayton, Ohio market.  After leasing the home back from you, the seller/tenant will then sublease the property for a profit.  The seller has been a real estate investor for thirty years.  Over 150 properties are currently involved in this NNN lease program.  The seller has never missed a lease payment and is willing to put every representation made here in writing and disclose their credit history and financials.  This is an amazing opportunity for a savvy real estate investor looking to 1) earn a high rate of return; 2) lower their risk substantially; and 3) avoid all maintenance and lease-up obligations associated with their investment.

We are available to explain every aspect of this transaction further should you have questions.  We will provide property photos and details to those that make serious inquiries.  Customized investment plans are available if, for example, you would like to invest a certain amount of capital over a specified period of time (e.g. $2mil over the year) or buy in bulk at once.

If you are a broker and have a client that may be interested in participating in this opportunity, please contact us for more information.  This is a “collect your own” commission structure.

If you would like to speak to a member of our team about developing a customized investment strategy, or for more information on the NNN lease opportunity, please call (212) 400-4838 or e-mail yourkeytothecity@AkerlyRE.com.

Disclaimer
This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of an offer to buy or sell any real property. Any such offer would be made only after a prospective investor had completed its own independent investigation of the terms of the sale leaseback agreement that will be provided to them as well as a diligent investigation of the real property involved in the transaction. That agreement and the results of a thorough investigation of the property would contain material information not contained herein.  The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it.  It is the responsibility of prospective investors to ensure that they understand the relationship of the parties involved in the prospective transaction, the terms of the agreement they seek to enter into, the risks involved in real estate investing and this investment opportunity in particular.  We make no warranty or representation about the content of this marketing brochure.  It is the responsibility of the individual investor to confirm its accuracy and completeness.

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