Ep 134: Investing in a Triple Net Lease Property with Dwaine Clarke

How would you like to own a Taco Bell, 7-Eleven or Dollar General? We’re not talking about running a franchise or branch, but investing in single tenant net lease properties, otherwise known as a triple net lease. Dwaine Clarke focuses on triple net leases and has completed over $150M in transactions since 2012. He shares some of the differences in investing in triple net lease properties compared to multifamily, how to conduct market research, and how to evaluate credit risk for these retailers.   Partner: Download a Free Sample Apartment Deal Package     Key Insights Large companies often lease retail locations and cover all expenses and taxes Commercial leases are long term – 15-30 years with renewals built-in Downside: minimal upside and only one tenant Mitigate risks by selecting great locations with high traffic, strong jobs, and solid household income Places where e-commerce is less of a threat (hair salons, entertainment, etc.) Monitor retail settings – high traffic, highway visibility, population, and household income Lower return expectations with 4% - 6.75% cap rates Ideal for investors not interested in real estate or with a lower risk tolerance Corporate, Institutional, Franchise levels of commercial Corporate – privately-owned, but large firms; Institutional - publicly traded, large firms; Franchise – smaller, privately-owned S&P, BBB, Moody’s resources to check credit rating and credit profile When a tenant leaves, the new tenant is usually responsible for the build-out of the new space     Bull’s Eye Tips: How has a failure or apparent failure, set you up for later success? Started flipping houses and did not go well   Most Recommended Book: Winning Through Intimidation by Robert Ringer   Million Dollar Habits by Robert Ringer   Most Recommended Digital/Mobile Resource: Asana   Daily Habit Waking up between 4 - 4:15am   Wish I Knew Last Year Networking on a high level – traveling for event, podcasting   Real World Advice Be ready to adjust and subscribe to audio university   Advice to Ignore The negative people   Current Curiosity Learning more and being open – parenting and family relationships   Best Place to Grab a Bite Bar Taco & Flemings - West Hartford, CT   Resources: Free Copy of Real Estate Mailbox Money   Connect with Dwaine: Social Media: Dwaine Clarke   Website: BuyNNNProperties.com     Leave us a review and rating on Apple Podcasts or Spotify. Be sure to check out more info at TargetMarketInsights.com.