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STNL DUE DILIGENCE
With STNL (single tenant net leased) properties there is often a misconception that these are easy to buy and you can’t go wrong purchasing a single tenant NNN property. Nothing could be further from the truth. Both as an investor myself and a principal broker I usually review over 1,000 single and multi-tenant NNN properties a week. What I have found over decades of time active in the space is there can be a lot of lemons. Here are some Key negative items to watch out for. O

Jonny Cunningham
Aug 29, 20232 min read


FINANCING FOR SINGLE TENANT PROPERTIES
Potential clients often ask me, “What is the interest rate on a commercial real estate loan?” The short answer would be, “It depends." I do not actually answer the question in that manner but instead start the conversation by asking the client several questions about their situation and the specific type of property they are considering. Before I can provide guidance to the client on loan terms, I need to gather information. Commercial banks, credit unions, life insurance com

Jonny Cunningham
Aug 29, 20235 min read


Leveraging 1031 Exchange: Maximizing Gains from the Sale Proceeds of Personal Property and Business Real Estate
The 1031 exchange, also known as a like-kind exchange or tax-deferred exchange, is a strategic tax planning tool that allows individuals and businesses to defer capital gains taxes on the sale of certain assets, such as personal property or business real estate. This powerful mechanism is popular for its potential to help investors preserve capital and facilitate the growth of their portfolios. Regarding how the 1031 exchange works, particularly when using the proceeds from t

Jonny Cunningham
Aug 23, 20233 min read


LOCATION
In real estate... what is that saying? Location, location, location! Whether residential or commercial the same rings true. Desirability of a location comes down to positive attributes that the tenant or property owner is looking for. Generally unless you live in a rural area and understand the nuances of that area to a high degree of knowledge, most buyers stay out of these locations for investment purposes. Rural locations to weak (small) suburban areas often carry the m

Jonny Cunningham
Jul 5, 20236 min read


CREDIT GRADE OF TENANTS
It is important when looking at buying a NNN STNL property that a purchaser can analyze the strength of the tenant for security of the passive cash flow stream over time. The purchaser wants to feel comfortable that their investment is sound and will be successful over the long term. You have 3 main rating agencies that underwrite public companies for businesses: Standard & Poor’s, Moody’s, and Fitch’s. Most NNN lenders look at Standard & Poor’s ratings. Statistically the h

Jonny Cunningham
Jul 5, 20233 min read


TYPES OF LEASES
Investors often think of STNL as generally passive but do not have as clear of an understanding to the types of lease structures available and what that means. Here are the various types of leases you might come across when searching for a NNN STNL property. Absolute NNN This is where the tenant pays for everything with a property, and the landlord is completely passive. The tenant takes care of insurance, property taxes, maintenance to the property, etc. This structure is

Jonny Cunningham
Jun 23, 20237 min read


How to protect your time with a passive income shield
When it comes to the world of smart investing, there are a few things that we need to first discover. To start this discovery, let's first ask the following questions: Are your current investments creating you headaches because they are so much work and energy just to see the fruit of the investment - costing you much labor, stress and personal involvement? Are your cashflow sources volatile, ever changing, sometimes unstable? Do you experience tremendous pressure to keep a b

Jonny Cunningham
May 17, 20232 min read


What is Triple-Net (NNN) Investing?
Triple net (NNN) investing is a type of commercial real estate investment strategy that involves owning and leasing properties under a specific type of lease arrangement known as a triple net lease. In a triple net lease, the tenant is responsible for paying not only the rent but also the 1) property taxes, 2) insurance, and 3) maintenance expenses (CAM or Common Area Maintenance), hence the term "triple net." This places a significant portion of the financial and operational

Jonny Cunningham
May 15, 20232 min read


Paul Jones, having purchased 4 triple-net lease properties, appreciates NNN Investing
Triple-net investing is a low-risk commercial property net lease where you as the investor can benefit in multiple ways. A triple-net lease (NNN) can reduce day-to-day involvement and headaches, as opposed to multi-family where collection of rent is often cumbersome, freeing you to spend more time on your life and your business and see supplemental income steadily grow to a continuous flow. This stability provides peace of mind in the relatively turbulent state of commercial

Jonny Cunningham
Apr 19, 20232 min read


What is NNN investing and why should I choose to invest in NNN commercial properties?
Featuring the book, NNN Riches | Part 1 What is NNN? NNN, or ‘Triple-Net’ is typically a commercial property lease. The NNN stands for “net, net, net”. ‘Absolute NNN’ is where recurring costs such as, taxes, insurance and maintenance, are the responsibility of the tenant, not the investor or owner of the property. Why should I choose NNN investing? NNN offers Passive Real Estate Wealth through commercial investing. Many investments involve high risk, high levels of activity,

Jonny Cunningham
Feb 6, 20231 min read
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