Potential Pitfalls of NNN Properties and a Savvy Alternative
By: Chay Lapin, President of Kay Properties and Investments NNN properties seem like passive investments but actually require regular management. Overconcentration is a key risk when it comes to investing in NNN properties. DSTs (Delaware Statutory Trusts) provide an alternative way to invest in NNN properties. *Diversification* and true passivity are unique advantages of DST investments. Frequently investors are seeking out reduced management and or passive real estate investments. Real estate owners are simply tired … Read More
“THIS ISN’T WHAT I SIGNED UP FOR!” NNN Landlord’s Dilemma in COVID’s Uncharted Territory
By Betty Friant, CCIM – Senior Vice President, Kay Properties and Investments QUESTION: There are some really big companies announcing that they won’t pay rents. What is going on? Even some of the biggest companies in the United States are asking for or “requiring” rent reductions during the Covid 19 pandemic. Well known companies like Starbucks, The Gap, Cheesecake Factory, Chipotle, Shake Shack, and Ruth’s Chris Steakhouse are among the large tenants who are looking … Read More
Triple Net Properties and Delaware Statutory Trusts
The Great Recession probably resulted in a seismic shift in many real estate investor’s risk profiles. In 2007, the primary investment strategy was aimed at residential properties with large amounts of market speculation. These properties were largely financed with debt and when the market collapsed, well we all know the story. In 2019 we are experiencing a 1) very peaky market with 2) compressed cap rates on residential properties 3) throughout secondary markets that are … Read More
Is a 1031 Exchange Triple Net Lease the Way to Go for You?
By Chay Lapin – Senior Vice President Kay Properties and Investments Please find below a case study when considering purchasing NNN properties versus alternative options such as DSTs. Is a NNN Property the way to go for my 1031 exchange? Are you considering to purchase and manage a (NNN) Net Lease Property on your own? Important Questions to Ask 1. Are you prepared for the potential active management? NNN properties are only passive if everything … Read More
NNN 1031 Choice Implodes: DST Available for Identification in 1031 Exchange
Challenge: Clients of Kay Properties and Investments identified two whole properties and a number of DST (Delaware Statuary Trust) properties for their 1031 Tax Deferred Exchange using the 200% rule. The 200% rule allows an investor to identify up to 200% of the fair market value of the relinquished property instead of just choosing three properties. After the Identification Period expired, one of the whole properties the clients had under Letter of Intent was withdrawn … Read More
