Your bond investment national premium saving Information
Why are so many investors, foreign and domestic, placing their money in NNN properties?
Net-leased real estate provides a unique investment opportunity to individuals or institutions interested in owning real estate without the hassles of management and leasing typically found in conventional real estate investments. Net-leased projects are most commonly single-tenant, credit-driven investments on long-term leases which require minimal or no landlord responsibility.
As a result, investors are not bound to their geographic markets, whereas they would most likely be with a traditional real estate investment, not just closely watched “backyard” opportunities.
A net-leased (NNN) property is effectively a long-term bond of a corporation in the form of a lease document encompassed by real estate. The investment appears to be a bond-type investment due to the “coupon-clipper” type of returns, 6%-10%. However, they also provide the added benefits of tax reduction and property appreciation found in conventional real estate.
The net-leased investment can be categorized three ways:
1. Retail refers to big-box users (i.e. discount variety stores, department stores, or home improvement stores) as well as small-box users (i.e. restaurants or drug stores).
2. Industrial includes facilities used for either distribution, manufacturing, or research and development.
3. Office refers to any single user such as an oil company or pharmaceutical firm occupying a facility as the sole tenant.
Pricing on net-leased projects is based primarily on the tenant’s credit, the terms of the lease, and the location. Although each of these variables has an important role in the pricing of net-leased projects, it is the combination of all three that will determine a true purchase price.
Tenant’s Credit
* Many net-leased projects are based solely on a tenant’s credit.
* Tenants considered investment grade by a recognized rating agency usually trade at a premium (i.e. Walmart, Walgreens, General Motors).
* Tenants with junk bond (non-investment grade) ratings or minimal net worth typically trade for a higher return (i.e. UA Theaters, Dairy Mart convenience stores, Taco Cabana restaurants).
Lease
* Length of a lease is a another primary factor in determining the sales price on a net-leased investment. Primary terms of 15 or more years are preferred; 10 years is sufficient in 1031 tax-deferred exchanges and similar cases
* “Absolute” triple-net leases, where the tenant is responsible for roof, structure, and parking, trade at a premium.
* “Double-net (NN)” leases, where the landlord is responsible for roof and structure, trade at a higher yield and usually include a reserve taken for any potential repairs.
* Leases with “bumps”- rental increases or upside trade at a premium, with the exception of flat leases with investment grade credit.
Location
* NNN leases are credit-driven, causing location to be the least important factor.
* Investors often pay an added premium for the residual benefit of specifying a certain geographic location.
The combination of credit, lease and location can lead to paying a higher premium (i.e. Walgreen: 20 year NNN, flat) or receiving a higher yield (i.e. CSK Auto: 15 year NN).
The market for net-leased real estate investments is strong. The availability of attractive financing combined with minimal landlord responsibilities create highly desirable opportunities, especially for investors desiring a property for an IRS Section 1031 tax-deferred exchange.
Whether a risk-averse individual or institution is in need of a smart depreciation vehicle or a relatively safe “coupon-clipper,” net-leased properties provide great investments in both credit and real estate markets.
For more information about
triple net lease or for more related subjects about
1031 Exchange please review this webpage
http://www.triplenetleasefor1031.comArticle author: Fabiola Groshan
When it comes to dmv surety bonds, there is the misconception that they cost an arm and a leg. In actuality, they are rather inexpensive considering the coverage provided. There are some things that can reduce the price even more, but in general they are affordable.
The reason you need a motor vehicle dealer bond is because it is required by law to get a dealer license. While it is required by law, it helps to protect the public from any sticky situations such as fraud or bouncing a check. Having a bond can also help protect other businesses that you do business with as a dealer.
The price of the vehicle registration bond varies depending on a number of factors. In order to get a retail license, a $50,000 bond is required. If you are going to be a wholesaler, the price of the bond required drops to a measly $10,000. You can identify the amount of bond you need according to the number of cars you will transact.
If you are transacting less than 25 cars per year, you are going to be a wholesaler needing only a $10,000 bond. But if you are a wholesaler and transact 25 or more cars per year, a $50,000 bond is required.
So what does all this mean to you? Surprisingly, the going rate is rather minute according to the bond amount you have to get. For a $10,000 bond, you can expect to pay somewhere around $300 per year. If you need a $50,000 bond, the payment will be between $800 and $1,500 per year. These numbers fluctuate and differ from person to person according to your credit.
When getting a vehicle registration surety bond, the bond will be cheaper the better your credit is. If you have a really good credit, the price of a $50,000 bond will be closer to the $800 per year. However, you can expect to pony up closer to the $1,500 with a poor credit score. If your credit is as bad as it can get, it is recommended that you get a co-signer or a business partner with a good credit to better your situation.
When you set out to find a company to purchase a dmv surety bond, be wary or where you look. The yellow pages are filled with companies, but many times these companies are rather expensive. Searching online is one of the better sources because of the variety and options available.
While it can be a pain having to get a motor vehicle dealer bond, fortunately they are cheaper than most people think. As long as you research and find a reasonable company, the price of a dmv bond should be far from overwhelming.
While it can be a pain having to get a
motor vehicle dealer bond, fortunately they are cheaper than most people think. As long as you research and find a reasonable company, the price of a
dmv bond should be far from overwhelming.
Article author: Fabiola Groshan
There are many National charitable trusts (non-profit making organization) which work for the welfare of others by doing National Charities! All Good National Charity Organizations spend heaps of money for helping the needy! From betterment of the poor people to saving the natural bodies like Plants, rivers etc many organizations work for such noble cause!
There are private as well govt. National charitable trusts! The govt. organizations run Deepak Bansal is an internet marketing consultant having experience of 4.5 years in search engine optimization industry. We are specialist in website copywriting, Blog articles, Case studies and white papers, E-newsletters, Interactive presentations, Press releases. This article is written by content writing team of http://www.deepakbansal.com -
SEO Indiaon govt. aids while the private ones are completely backed up on donations and grants! These organizations coordinate fashions shows, music concerts, art exhibitions and the amount collected is used for National Charities!
Even at times of natural calamities many National Charity Organizations save the sufferers in distress by doing National Charities. Sexual exploitation being a major problem many organizations even do fund raising for saving such victims!
There are many eminent personalities who are involved in National Charities! Be it for publicity at least such people are taking time for such noble cause! There are many National charity organizations but only a handful of them have been successful in making their name in the society by doing good work! It’s your country, if you wouldn’t help, who would? So please donate generously and help such organizations!
Article author: deepak bansal
