Celebrating 30 Years of Connecting Sound Economics with Experience in Real Estate

OUR NEW PODCAST!

The Nothing But Net – NNN Show

Your Guide To Carefree Cash Flow

Our new podcast tells you the facts about everything in Net Lease properties also known as NNN or Triple Net.  If you are looking to learn more about these stable, conservative and passive income properties take a listen.  Sometimes described as “Bonds wrapped in real estate” or “Mailbox Money Machines” Single-Tenant Triple-Net lease properties are rock solid in turbulent times.   Take a listen to hear how Net Lease investments create passive cash flow and tax benefits for investors while being fantastic hedges against inflation.  These properties have intrinsic value and you get pride of ownership of some of the biggest brand names in the world.  See how the super wealthy invest to generate truly passive income and preserve wealth!

Episode 001: NNN001 – Nothing But Net – NNN – Introduction

In this first episode Adam Carswell and Michael Flight explain what a Triple Net property is and the benefits of Net Lease Investments. Introductions are also made to explain Adam Carswell’s role as Director of Media and Marketing for Liberty Real Estate Fund LLC and Michael Flight’s 35 plus years of experience working with commercial real estate and specifically his extensive experience with Triple Net properties.

Timestamped Shownotes:

00:30 – What is Triple Net (NNN) Real Estate and  what are the benefits of Net Lease Investments?

02:32 – Adam Carswell of Liberty Real Estate Fund introduces Michael Flight, founding Partner and CEO of Liberty Real Estate Fund LLC

04:23 – Michael Flight, CEO of Liberty Real Estate Fund LLC, introduces Adam Carswell, Director of Media and Marketing for Liberty Real Estate Fund

06:26 – Michael Flight, founding Partner and CEO of Liberty Real Estate Fund, shares about Concordia Realty which specializes in Triple Net (NNN) real estate and Single Tenant Net Lease (STNL) investments 

07:15 – How is Liberty Real Estate Fund utilizing real estate on the blockchain and security tokens for STNL investments and Net Lease investments? 

08:10 – What is the Chicago Blockchain Real Estate Collective? (http://www.concordiarealty.com/chicago-blockchain-real-estate-collective-meetup/)

08:45 – Why are Net Lease investments one of the best real estate investments in the marketplace?

09:07 – How are STNL investments like bonds wrapped in real estate? 

10:16 – How do Net Lease investments create passive cash flow for real estate investors?

11:02 – What are the benefits of the long term leases and the intrinsic value of net lease assets?

12:18 – Michael Flight, CEO of Liberty Real Estate Fund LLC, introduces his book that explains whether to invest in net leased assets on their own, with other investors, or take advantage of these investments without investing themselves

13:17 – Why did Liberty Real Estate Fund choose to tokenize real estate and create Security Token Offerings (STOs)  for STNL investments? 

16:35 – Why bring real estate on the blockchain with security tokens?

21:09 – How can investors get involved with and learn more about net lease investments with Concordia Realty and Liberty Real Estate Fund?

22:33 – What was the inspiration for Liberty Real Estate Fund LLC’s name?

Key Points:

  1. Benefits of Triple Net (NNN) real estate and Single Tenant Net Lease (STNL) investments
  2. Single Tenant Net Lease (STNL) investments like bonds wrapped in real estate
  3. Net Lease investments create passive cash flow for real estate investors
  4. Net Lease investments generate wealth and create freedom 

For more information contact us here and mention Nothing But Net or simply NNN:

The Nothing But Net – NNN Podcast is sponsored by:

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Episode 002: NNN002 – Nothing But Net – WHY REAL ESTATE?

In this episode, hosts Adam Carswell and Michael Flight answer a few questions on why real estate is a superior investment. He shares what investors should do to: acquire a safe haven investment in times of global economic storms; avoid stock market volatility during political unrest; and achieve consistent monthly income and cash flow. They also touch on what investment alternative has produced the most stable returns over long periods of time to create value and wealth for investors.

Timestamped Shownotes:

00:30 – What is Triple Net (NNN) Real Estate and  what are the benefits of Net Lease Investments?

02:37 – Adam Carswell of Liberty Real Estate Fund introduces Michael Flight, founding Partner and CEO of Liberty Real Estate Fund LLC

04:02 – How does Real Estate preserve and generate wealth?

05:25 – How does real estate benefit more than regular hard assets, like precious metals, and create cash flow?

06:07 – How do commercial real estate investments and Triple Net (NNN) properties create recurring monthly income and hedge against inflation?

07:32 – Why are Net Lease investments one of the best real estate investments in the marketplace?

08:12 – What are the different types of net leases? 

11:32 – Why are Triple Net (NNN) leases and Single Tenant Net Leases (STNL) superior?

12:35 – What are the advantages of a Triple Net (NNN) lease?

13:28 – What are the benefits of the long term leases for net lease assets?

15:45 – What is a sale-lease agreement for net lease properties?

Key Points:

  1. Benefits of Triple Net (NNN) real estate and Single Tenant Net Lease (STNL) investments
  2. Net Lease investments create passive cash flow for real estate investors
  3. Net Lease investments have tangible and intrinsic value as a hard asset

For more information contact us here and mention Nothing But Net or simply NNN:

Episode 003: NNN003 – Nothing But Net – ACQUISITION CRITERIA

In this episode, Adam Carswell and Michael Flight explain what a Triple Net property is and the benefits of Net Lease Investments. Specifically, they share what acquisition criteria investors need for investing in Triple Net (NNN) lease properties and how to evaluate these investments with a solid syndication team. Michael and Adam also explain the importance of having industry knowledge, and more specifically target industry knowledge, when choosing net lease properties in the investor’s target geographic location. They wrap up this episode with Michael giving a real-world example of a company’s acquisition criteria, sharing Liberty Real Estate Fund’s process when choosing investments.

Timestamped Shownotes:

00:30 – What is Triple Net (NNN) Real Estate and  what are the benefits of Net Lease Investments?

02:32 – What is the acquisition criteria for Triple Net (NNN) properties?

03:46 – Why is acquisition criteria so important in selecting the Net Lease real estate?

04:40 – What is “shiny object syndrome” some investors fall prey to when evaluating NNN properties?

05:21 – How do you decide the investment size for Triple Net properties? 

07:02 – How does having industry knowledge help investors choose successful NNN properties?

13:12 – Why are investors attracted to businesses like Chick-fil-A?

14:39 – How do you evaluate the money and resources needed for Triple Net Lease investments?

16:52 – What are the benefits of Security Token Offerings (STOs) for net lease investments?

18:48 – How does credit factor into investing in Triple Net properties?

20:52 – What people do investors need for a real estate syndication?

26:06 – How do you choose a target market and target geography for net lease investments?

27:45 – How does target industry knowledge benefit investors’ net lease properties?

31:22 – Why are return rates important for evaluating properties with investors’ acquisition criteria?

33:15 – Michael shares an example of evaluating net lease properties with acquisition criteria, looking at Liberty Real Estate Fund’s process

36:58 – How can investors get involved with and learn more about net lease investments with Liberty Real Estate Fund?

Key Points:

  1. Benefits of Triple Net (NNN) real estate and Single Tenant Net Lease (STNL) investments
  2. How to Evaluate Acquisition Criteria of Triple Net (NNN) Properties
  3. Importance of Industry Knowledge for choosing successful NNN properties
  4. Net Lease investments generate wealth and passive income

For more information contact us here and mention Nothing But Net or simply NNN:

Episode 004: NNN004 – Nothing But Net – CREDIT RATINGS

In this episode, Adam Carswell and Michael Flight discuss credit ratings and what it means to be an investment-grade tenant. They share what a credit rating is and how to evaluate whether a tenant is a good fit for a net lease property (i.e. investment grade). Michael and Adam emphasize how Triple Net real estate is a better investment than bonds, as well. Michael also explains the importance of evaluating the government type, government temperament, and government regulations surrounding a Triple Net property for the acquisition criteria. They wrap up this episode with Michael explaining how the brand affects the success of a net lease tenant.

Timestamped Shownotes:

00:30 – What is Triple Net (NNN) Real Estate and  what are the benefits of Net Lease Investments?

03:09 – Why are ESG investments so popular for institutional investing at the moment?

03:30 – How can state, municipal, and national government impact an investor’s acquisition criteria?

05:57 – Why is it essential to evaluate the government type, temperament, and regulations for a Triple Net property?

07:05 – What are the three most important factors in Single Tenant Net Lease (STNL) properties?

07:57 – How are Triple Net (NNN) property investments like bonds wrapped in real estate?

08:16 – How are credit ratings, like investment-grade, established for business tenants?

09:15 – What is a credit rating?

10:17 – How does a credit rating affect the price given to a net lease tenant? 

13:20 – What does an investment-grade rating indicate to investors and how can they recognize them?

16:50 – What is an example of a bad investment tenant in the current economy?

18:54 – What are some of the highest investment-grade tenants to invest in for Triple Net properties?

19:40 – Why is real estate a better investment investment than bonds?

22:39 – How do real estate investments combat inflation better than bonds?

24:01 – What is the difference in return ratings for real estate investments versus bonds and municipal bonds?

25:52 – How does the brand affect the success of a net lease tenant?

Key Points:

  1. Benefits of Investment-Grade credit rating for Single Tenant Net Lease (STNL) investment tenants
  2. How to Evaluate the Credit Ratings of Triple Net property tenants 
  3. Net Lease investments have tangible and intrinsic value as a hard asset
  4. Single Tenant Net Lease (STNL) investments like bonds wrapped in real estate

For more information contact us here and mention Nothing But Net or simply NNN:

Episode 005: NNN005 – Nothing But Net – OFFERING MEMORANDUM WALKTHROUGH

In this episode, Adam Carswell and Michael Flight work through a sample offering memorandum to show investors how to read and understand a potential acquisition from its given written information. (To follow along with Michael and Adam, watch the video HERE to see them actually going through the offering memorandum!) They discuss how investors must evaluate for growth rates, economic prospects, and especially the government structure after choosing a location(s) for net lease properties. Michael shares why and how to assess the location and trade area of prospective Triple Net properties through the Walgreens sample offering memorandum. Michael and Adam point out other important metrics to pay attention to and what they mean, including the price per square, building attributes, lease term, and more. They wrap up by giving investors some advice on what to do before signing a net lease property, especially why to physically visit a property location.

Follow along with Michael and Adam:

Timestamped Shownotes:

03:01 – What should investors evaluate potential net lease properties for after choosing a location?

05:50 – Why should you seek out multiple reputable real estate brokers before investing in Triple Net (NNN) properties?

06:26 – Why must investors evaluate offering memorandums after the acquisition criteria of net lease real estate?

07:20 – Co-hosts Adam Carswell of Liberty Real Estate Fund and Michael Flight, founding Partner and CEO of Liberty Real Estate Fund, introduce the case study of a real Walgreens offering memorandum they evaluated

07:38 – Why do tenants require investors to sign confidentiality agreements when closing a net lease deal?

09:15 – What are the first steps of evaluating an offering memorandum?

09:53 – What do investment highlights of an offering memorandum tell investors about the Triple Net property?

11:10 – Why and how should investors check the physical location of the NNN property?

14:33 – How does the trade area affect the business of a net lease property?

18:33 – What physical attributes of the building should investors look for in an offering memorandum, specifically with drugstores?

20:14 – Why does the price per square foot matter for a net lease property based on location?

21:38 – Why does the density of a population and competing store locations in the trade area affect business?

23:34 – How does the traffic flow affect the success of a net lease property location?

26:17 – What is a reciprocal ease agreement and how does it generate business for NNN tenants?

27:45 – What other aspects are important to note in an offering memorandum and look into? 

28:38 – What are the basic metrics to look for in this NNN Walgreens offering memorandum? 

30:30 – What does the lease term of a net lease property tell investors? 

31:08 – Why do real estate taxes matter to tenants and investors?

32:20 – Why do investors have to verify that a property is Triple Net in the offering memorandum?

33:15 – Why evaluate the time of construction of a net lease building?

33:52 – How do rent escalations add value to Triple Net real estate?

34:45 – Why should investors physically visit the property before buying?

Key Points:

  1. How to evaluate the Offering Memorandum of Triple Net property buildings 
  2. Importance of evaluating the Location of Triple Net (NNN) properties
  3. How population density and traffic patterns affect Net Lease properties’ success

For more information contact us here and mention Nothing But Net or simply NNN:

Episode 006: NNN006 – Nothing But Net NNN

FINANCIAL ANALYSIS OF OFFERING MEMORANDUM

Follow along with Michael, Adam and Jordan:

In this episode, Adam Carswell and Michael Flight talk with Jordan Steck, Liberty Real Estate Fund’s co-founder and Director of Eastern Acquisitions & Capital Markets, to work through the financial analysis of an offering memorandum — the same OM reviewed in episode NNN005. (To follow along with Michael, Adam and Jordan, watch the video HERE to see them actually going through the offering memorandum!)They discuss the key assumptions that are important when evaluating the economic feasibility of a real estate investment. Jordan also points out the annual cash flows and how to get to different levels of income as well as understanding what the different returns are of the Triple Net property and how to get to those returns. They wrap up this episode with an emphasis on the importance of evaluating the taxable income that Triple Net properties offer investors.

Timestamped Shownotes:

01:55 – Adam Carswell and Michael Flight, CEO and co-founder of Liberty Real Estate, introduce Jordan Steck, Liberty Real Estate Fund’s Director of Eastern Acquisitions & Capital Markets and co-founder

04:45 – When do investors conduct a financial analysis for a potential Triple Net (NNN) investment?

05:28 – Why do investors need to look at the financial model of a net lease property after its offering memorandum?

06:09 – What is the difference between an investor’s asking price and actual acquisition price?

06:40 – What other expenses and costs do investors incur when processing a net lease investment? 

07:39 – What is the all-in basis, or all-in purchase price?

07:50 – Why is the square footage of a Triple Net property a key factor in evaluation?

08:38 – How do construction costs and replacement costs affect the understanding of a property’s price per square foot?

09:46 – What is Gross Leasable Area (GLA)?

10:47 – Why should investors note the age of a Triple Net property as well as any renovations and the type of the lease term?

11:16 – What is the Capitalization Rate (cap rate) of a real estate property? 

12:08 – What factors change a cap rate?

13:25 – What are some examples of businesses that have higher cap rates versus lower cap rates?

14:32 – How does the creditworthiness of the tenant affect the cap rate of a net lease investment?

15:29 – Why does higher market performance affect cap rates?

16:29 – How can leveraging a property and acquiring debt actually benefit investors in the long run?

19:08 – Why does a lower interest rate benefit net lease property investments?

20:21 – Why must investors evaluate the annual rent of Single Tenant Net Lease properties?

20:52 – What is a vacancy factor and how do net lease properties maximize efficiency?

22:39 – What are the typical expenses of Triple Net investments for tenants versus investors?

25:15 – Why compare the purchase price of an NNN property with its property taxes?

28:29 – What are the benefits of real estate investments for tenants and beyond?

30:50 – How do investors calculate the annual cash flows and respective return metrics for Triple Net investments?

32:15 – What are debt services and how do investors interpret them for loan deals?

35:32 – What is levered cash flow?

36:31 – How do investors calculate a debt service coverage ratio?

38:25 – What is a debt yield? Debt per square foot?

40:00 – Why must investors apply a growth rate to the cap rate to determine the sales price, or reversion value, of a Triple Net property?

41:14 – What is the Internal Rate of Return (IRR) of a net lease investment?

42:55 – What is the cash-on-cash of an investment?

43:39 – What are the differences between the IRR and the cash-on-cash?

44:22 – How does the reversion value affect the IRR of a net lease property?

47:26 – What is the Equity Multiple and how does it show investors the optimal hold rate?

48:54 – Why should investors evaluate the taxable income of a Triple Net investment?

54:11 – How can investors contact Jordan, Michael and/or Adam?

Key Points:

  1. How to Evaluate the Financial Model of Triple Net properties 
  2. Net Lease investments generate wealth and passive income  
  3. Net Lease investments have tangible and intrinsic value as a hard asset
  4. Importance of the Capitalization Rate of Triple Net properties

For more information contact us here and mention Nothing But Net or simply NNN:

Episode 007: NNN007 – Nothing But Net – LETTER OF INTENT

In this episode, co-hosts Adam Carswell and Michael Flight explain the process of making an offer on a Triple Net (NNN) property with what is called the Letter of Intent, or Purchase Offer. They discuss the key information to include in an LOI to make sure the investor and property owner are clear on the stipulations of the offer. Michael and Adam also point out and define terms, such Purchase Sale Agreement, Single Asset Entity, Estoppel Certificate and many more, educating listeners through a step-by-step breakdown of an LOI. They wrap up this episode with an emphasis on why they aim to prepare investors for these Triple Net investment deals with a clear letter of intent.

Timestamped Shownotes:

01:48 – Adam Carswell and Michael Flight, CEO and co-founder of Liberty Real Estate, introduce the show’s topic of making an offer with a Letter of Intent 

02:23 – What is a Letter of Intent (LOI), or Purchase Offer? 

03:18 – What is a Purchase Sale Agreement?

03:44 – Why is it important for the LOI to specify the terms agreed to between the tenant and the investor? 

05:02 – Why do investors need to check if state and local laws specify that LOIs are binding or non-binding contracts?

06:19 – Why should investors not undervalue, or “lowball,” their Triple Net (NNN) investment offers to tenants?

08:10 – What are some factors to consider when forming a strategic LOI on a net lease property?

09:24 – How do Professional LOIs appeal to sellers and what do they specify?

10:08 – Why is it important to have a relationship with the selling broker of a Triple Net investment?

11:25 – When should investors visit the NNN property before purchasing it?

13:23 – How are net lease properties similar to bonds wrapped in real estate? 

14:17 – How can investors learn about Triple Net real estate beyond this podcast?

15:21 – What basic information should be included in the LOI?

15:57 – Why should LOIs have an expiration date?

16:42 – What contact information should be included in an LOI?

17:29 – What is a Single Asset Entity (SAE), or Single Purpose Entity (SPE)? 

18:09 – What is included in the subject line of the LOI? 

19:42 – What is the Assessor Parcel Number (APN)?

20:04 – What information should be included in the majority of the LOI specific for the offer?

21:54 – Why should investors ask for a Phase 1 Environmental Inspection?

23:05 – Why do investors have to look over all leases and accompanying documents?

23:32 – What is an Estoppel Certificate and why are they so important? 

24:42 – What financial information should investors ask for in LOIs from property owners?

25:12 – What is a Reciprocal Ease Agreement?

25:46 – Why should investors ask if the tenant has any future plans for the Triple Net property?

26:27 – Why do investors need to check for proper zoning of NNN properties?

27:34 – Why specify the waiver time on an LOI?

28:20 – Why include the closing cost for the net lease property?

28:30 – What is proration and why do some regions prorate properties differently?

29:15 – Why specify the involvement of real estate brokers in the LOI?

30:01 – Why do investors want the right to sign a purchase agreement to another entity?

30:18 – Why do tenants need to know whether investors are involved in a 1031 Exchange for a net lease investment?

Key Points:

  1. Factors of a Letter of Intent (LOI) 
  2. Net Lease investments have tangible and intrinsic value as a hard asset
  3. Importance of Knowing State and Local Property Laws of Triple Net Location 

For more information contact us here and mention Nothing But Net or simply NNN:

Episode 008: NNN008 – Nothing But Net – PURCHASE AND SALE AGREEMENT

In this episode, co-hosts Adam Carswell and Michael Flight delve into what a Purchase and Sale Agreement (PSA) is from the business person’s standpoint. They discuss the important factors that PSAs for Triple Net (NNN) properties should have in writing, including a detailed property description, what is specifically being sold, the lease type, the purchase price, the due diligence period, and much more. Michael and Adam also explain what kind of mindset buyers should have when negotiating the PSA with sellers. They wrap up this episode with Michael sharing some key tips in evaluating the PSA, emphasizing the importance of checking that everything buyers want is specially written in the PSA and  always paying close attention to time limits and dates listed to ensure a smooth close of the NNN deal.

Timestamped Shownotes:

02:07 – Adam Carswell and Michael Flight, CEO and co-founder of Liberty Real Estate, introduce the show’s topic of making a Purchase and Sale Agreement

04:32 – Why do sellers use a data room or competitive bidding process after reviewing the Letter of Intent (LOI), or Purchase Offer, with buyers? 

05:33 – What mindset should buyers have when negotiating a Purchase and Sale Agreement (PSA)?

09:07 – What entities and contact information should be listed on the PSA? 

10:55 – What information about the net lease property should be included in the PSA?

12:46 – Why should investors/buyers be as specific as possible in the description of the Triple Net (NNN) property?

13:12 – Why does the PSA have to specify what is being sold for Single Tenant Net Lease  and NNN properties?

13:57 – Why should buyers specify that they are buying the actual lease of a Triple Net property in the description of what is being sold?

14:35 – Why is it important to review the terms and Purchase Price next in the PSA?

14:55 – Why would buyers sometimes put a smaller Earnest Money Deposit along with the total Purchase Price during the due diligence period?

16:54 – What is the Due Diligence Period, or feasibility period, for net lease investors and what actions should be taken during it? 

17:47 – What are some examples of why it is important to ask for environmental studies before purchasing NNN properties?

19:50 – What are the main differences between buying Triple Net properties versus other asset classes?

21:11 – Why should buyers make sure that tenants do not have a Right of Cancellation in the PSA?

22:38 – What is an ALTA Survey and why are they essential like boundary surveys? 

23:07 – Why should an investor conduct Title Searches on a net lease property? 

25:04 – Why are Reciprocal Ease Agreements important to buying shopping centers?

26:49 – Why should buyers ask for indemnification in a PSA along with the sellers?

28:22 – Why should investors stipulate that they want a Right to Cancel in the PSA?

30:03 – Why should buyers specify a time limit for the due diligence period in the PSA?

30:30 – What should investors make sure they have included and reviewed in the PSA before buying a Triple Net property? 

31:58 – What is a Financing Contingency?

32:48 – What does the Closing of the deal specify in the PSA?

33:18 – What are some legal issues to be aware of and have contingencies for in the PSA?

35:10 – How long does an average Triple Net investment deal take to close?

36:52 – Why should buyers note in the PSA if they have a 1031 Exchange and/or any brokers?

37:31 – Why are dates very important to note for the buyer in a PSA?

38:08 – What important tips does co-host Michael Flight, CEO of Liberty Real Estate Fund, have for net lease buyers?

41:35 – What is the Closing in the process of a Net Lease deal?

Key Points:

  1. Factors of a Purchase and Sale Agreement (PSA) 
  2. Buyers need to specify everything they want for their Net Lease investments in writing 
  3. Importance of the Due Diligence Period in a Net Lease property deal 
  4. Always check the legality of every document for the sale of a Triple Net (NNN) property

For more information contact us here and mention Nothing But Net or simply NNN:

DISCLOSURES, LEGAL AND TAX COUNSEL: Concordia Realty Corporation is a licensed Illinois Real Estate Broker – License #478.006849. Concordia Realty Corporation, Concordia Equity Partners LLC, Concordia Realty Management,Inc. (collectively “Concordia Realty”) and their affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction or undertaking. Concordia Realty and Concordia Equity Partners LLC highly encourage individuals and investors to seek the counsel of a qualified attorney as well as seek the counsel of a tax professional or Certified Public Accountant (CPA) to determine if there are any potential tax liabilities or consequences as a result of anything contained herein. NO GUARANTEE: All users of this website should understand there are NO GUARANTEES of any success, outcome or profitability of any transaction or undertaking, expressed or implied by Concordia Realty, Concordia Equity Partners LLC or any of its members, shareholders, officers or affiliates and will NOT be liable for any financial or other losses or damages incurred as a result of any undertaking. Go HERE to view complete DISCLOSURES.