Thursday, February 3, 2011

Invest in Commercial Real Estate For Retirement Income

Any Time Is the Right Time to Get Into Net Lease Market For Retirement Income

2008 marks the first year when 78 million baby-boomers born between 1946 to 1964 start retiring. This is the first time in the US history that there is so many people who will be eligible for American Association of Retired Persons membership. So how will this affect you when it’s your turn to retire? And what should you do now? Since it has never happened before, you don’t have the benefits of learning from history. Let’s look at the big picture from 30,000 feet:

Uncle Sam is currently about $ 1.30 for every dollar they collect taxes. Since March 2008, the U.S. national debt to over $ 9,380,000,000,000 dollars, or about $ 30,894 per head exploded. The borrowing rate also increased, as he 2380000000000 $ Dollar has more debts are less than 4 years and the budget deficit for 2008 may be expanded to more than $ 500B. The government Accountability Office (GAO) warned of this type of fiscal policy is simply unacceptable!

Many investors are looking for a safe place to put their money with the wild fluctuations in the financial market. Stable, predictable investment vehicles are increasingly hard to find, but smart investors do have choices. One of the better choices is to invest in single-tenant, net leased properties, which many investors also call a corporate bond combined with real estate investments that still make sense today. Here's what you need to know about single-tenant, net leased properties: What is a single-tenant, net lease investment? A single-tenant, net-leased investment is typically a freestanding office, retail, or industrial building that is leased and occupied by one user or one company. Typically the tenant has committed to a long-term lease - usually longer than 10 years, and as long as 25 years with increasing rent over the lease term. What is a net lease? There are different types of leases for commercial property in the U.S. The two most common leases are full-service leases and net leases. A full-service lease means that the tenant is paying one base amount to the landlord/owner to occupy the space and the owner pays all the expenses related to the building including insurance and property taxes. With a full-service lease, the landlord/owner also is responsible for all maintenance related to the building. For example, if a thunderstorm damages the roof, the landlord/owner must pay for the repairs. In comparison, a tenant with a net lease is responsible for paying rent plus some or all of the operating expenses of the building such as taxes, insurance premiums, repairs, and utilities. Depending on how the leases are structured, they can be net-net leases or triple-net-leases. Specifically, in the case of a triple net lease, also known as NNN leases, the tenant agrees to pay all of the building's operating expenses, real estate taxes and insurance.

Square Footage: 3,119
Property Type: Restaurant, Retail
Lease Term: 15 yrs
Lease Structure: NNN
NOI: $159,178
Contact Broker: Rick Fernandez
Regarding Property: Arbys - Wake Forest, NC

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