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Hank Levine
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Hank Levine is
a Real Estate Broker in Hendersonville, Tennessee specializing in
Net Leased Commercial Real Estate and 1031 Exchanges. Throughout
his career starting in the 60’s as a composer/arranger/conductor in
Hollywood and Nashville he purchased Commercial Real Estate for his
own portfolio. In the early 90’s, as the Music Industry underwent a
complete transformation he decided to make Commercial Real Estate
his full-time profession. He presents this subject not only as a
Real Estate Professional but also from the investor’s point of view.
What Is Your Ultimate Goal as a Real Estate Investor?
Is it to retire as a
Millionaire by investing only in low-risk, management and
labor-free, inflation-proof Commercial Properties in
which your Tenants not only pay all taxes and insurance but, in
addition, do all the maintenance? Would you like your sole
duty each month to be to deposit the rent check?
Too
Good To Be True?
Many of the investors who contact Hank regarding the prospective
purchase of a Commercial Real Estate property currently own one or a
number of residential rental houses. They are deeply involved in
“Property Management”; They pay the taxes and insurance on their
properties, collect rents, and are responsible for all maintenance,
including plumbing, electrical, landscaping, roofing, general
repairs, etc.
They may often do the work themselves if they have the necessary
skills. This means that when they bought the property for
investment purposes they also bought themselves a job. Some of them
have hired a property management company to do all this for them in
return for 10% of the gross rent. That’s 10% of their anticipated
profit going to someone else. Often the management company is
earning more on their investment than they are!
Then Hank explains to them the advantages of
owning a Net Leased Commercial Property….
The difference between the two is their monthly cash return. In
addition, with their Tenant’s rent, which increases over time, plus
their equity buildup which increases monthly, they can anticipate a
return of fifteen to twenty percent on their cash down payment
starting year one and increasing annually. Invariably their
response is “But that sounds too good to be true!”
In Hank’s book, he will show you that it is absolutely true
and is the safe, sure and easy way to separate “work” from
“investment” and to become an
“Armchair Real Estate
Millionaire”.
A QUICK GUIDE TO
TRIPLE NET INVESTMENTS
In Hank's Net Lease Workshops for new investors or those
unfamiliar with “Net Lease” he usually begins with an overview of
the subject --- a brief definition of Triple Nets, what they are,
why they are available, what kind of return to expect and, in
general, how Net Lease works and differs from other real estate
investments.
Although not especially complex, in order to fully understand this
investment strategy there are many areas to cover in detail. This
overview will give you a foundation on which to build a complete
understanding of Net Lease investing and to decide if it is right
for you.
THE OVERVIEW
Many large corporations prefer to lease rather than own their
buildings for two reasons: they can only depreciate the cost of the
building over 39 years and it remains as a long-term debt on their
books. The monthly rent payment is written off as an annual expense
on their tax return. Therefore they often have a building custom
built and sell it with a long-term lease in place. The return to
the investor/purchaser is excellent --- usually starting at
around 15% to 20% and going up annually over the term of the
lease because of periodic rent raises and the equity build-up.
The Leases are called “Triple Net (NNN)”, which means the Tenant is
responsible for all repairs and maintenance --- including capital
items (roof, structure, parking lot, landscaping, etc.). In
addition, he pays all property taxes and insurance. The Landlord
has no expense or responsibility.
Most investors will purchase a Net Leased property by leveraging
their cash outlay --- putting twenty to twenty-five percent down and
obtaining a long-term bank loan for the balance. The Tenant’s rent
payment covers the mortgage note and in addition provides a steady,
excellent monthly cash return.
Leases are usually from ten to twenty years with additional option
periods. The NNN property is invariably a single-Tenant
free-standing building. And since it is occupied by an
“investment grade” company such as General Electric, Walgreen Drug,
KFC, Circuit City, etc. there is little likelihood of default.
Because of the financial standing of the Tenant, long-term bank
loans are usually obtained at a more favorable interest rate and
lower down payment than with other kinds of commercial real estate
investments. This allows the investor to acquire the property
with
fewer dollars up front. In addition, the property’s potential
rise in value over time because of its prime commercial location is
a big plus.
Although most investors prefer properties that are not more than two
to three hours driving time from their homes, they will have a much
larger selection of currently available properties if they can
include other cities in which they have business occasionally visit,
or to which perhaps they would eventually like to retire.
Purchase "The Armchair Real Estate Millionaire"
and Hank's Training CD for Only $53.50
(Includes $3.50 Shipping) and Receive His National Lender
Directory ABSOLUTELY FREE*!
* You will receive your Book & CD via
mail delivery. You will be redirected to your FREE
Bonus of the National Lender Directly
immediately upon successful completion of your order.
Click Here to Purchase Now!
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Interested in Investing in a Commercial
Net Leased
Property??
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