Will you outlive your money?

What do you fear most? Death or outliving your money? As one of their daily snapshots this week, USA Today published the results of a survey by Allianz Life Insurance Co asking 44-75 year olds "What do you fear more?  Death or outliving my money?

And the results are in….

61% - Outliving my money

39% - Death

Death may be frightening, but to a majority of older Americans, the possibility of outliving their savings is even worse.

Maybe it's me, but that seems crazy:  Fear running out of money more than death? To believe that you need what you don’t have is a definition of insanity.

My grandpa used to always say "it's just money, you can always make more" ….but he developed pancreatic cancer as a result of stress from a large business transaction gone south. So, maybe the survey is right. But fear is subjective and we are all entitled to our opinions.

I would rather plan.  As the saying goes, if there is a monster chasing you in your dream, stop, turn around and ask it "what do you want?".  Facing fears is the best way to eliminate them. In this case retirement fears.

Fear of running out of money is #1 in Sydney Lagier's  Three Retirement Fears to Conquer.  Regular savings combined with investments into secure low risk investments will help conquer this fear and alleviate worry.  It is better to plan and prepare rather than regret and repair.

Objective Retirement Planning: use a retirement calculator.  The purpose of every retirement calculator is to tell you one or both of these two pieces of information:

1. how much you need to save (usually per month) to be able to retire or
2. how big of a nest egg you must have in order to retire

So.... How much income do you need in retirement? Try this retirement income calculator

Also, try these other retirement calculators which include calculators to figure out Retirement Income, Retirement Planning, Fixed Annuities, Immediate Annuities, Long-Term Care and Social Security Benefits.

Here are Four Steps to a Healthy and Prosperous Retirement

1. Develop sources of reliable, lifetime retirement income
2. Manage your living expenses
3. Protect against things going wrong
4. Plan for a good life.

At the end of the day, happiness is cheaper in retirement especially when you have planned and have passive income from various investments. The majority of retirees surveyed by Ameriprise Financial say that after a few years of retirement, money worries fade into the background as long as you have planned.

What is Triple Net NNN? Triple net lease definition

What is a Triple Net Lease? Here is a quick summary of the triple net lease definition: A lease in which the lessee (tenant) pays rent to the lessor (landlord), as well as all taxes,insurance, and maintenance expenses that arise from the use of the property. The base rent is "net" to the landlord and landlord does not pay any expenses for operation of the property.

What Does Triple Net Lease Mean? A lease agreement that designates the lessee (the tenant) as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased asset, net building insurance and net common area maintenance. The lessee has to pay the net amount of  three types of costs, which how this term got its name: net, net, net or NNN or Triple Net

Triple Net Lease is also be referred to as a "net-net-net lease" or a "hell or high water lease"

This is how Investopedia explains Triple Net Lease

For example, if a property owner leases out a building to a business using a triple net lease, the tenant will be responsible for paying the building's property taxes, building insurance and the cost of any maintenance or repairs the building may require during the term of the lease. Because the tenant is covering these costs (which would otherwise be the responsibility of the property owner), the rent charged in the triple net lease is generally lower than the rent charged in a standard lease agreement. This is also called the net rent or base rent.

Contact TMO to find out more about the benefits of Triple Net Leased Real Estate Investments. 1.866.539.1777

Typical net leased properties and net leased investments are leased to investment grade credit tenants such as:

• Walgreens
• Best Buy
• Home Depot
• Lowes
• Wal-Mart
• McDonalds
• Burger King
• Auto Zone
• Checker Auto
• Tractor Supply Company
• and many other triple net lease tenants

Let's Make a Deal! - Client looking to trade free and clear assets

Let's Make a Deal! Client looking to trade free and clear assets for income property anywhere in US

Client looking to make creative deal and juggle his portfolio.  He has the following assets and is willing to trade any or all of them for or as a downpayment into income property with a cap rate of 8% or better.  His firm has excellent credit and is willing to put new loans in place if required. Owner carry property is preferred or loan assumptions are OK. He will consider ALL states. He does not want to exceed 60% LTV, so his trade has to be close to 40% down payment.  He will go into apartments, rental houses, office buildings, strip centers, mobile home parks--no motels or restaurants.

Assets to Trade:

1. free and clear Clovis,NM leased building (listed at $250,000)
2. 7  free and clear improved lots in Lake Whitney Tx (listed at current value of $95,000)
3. Two luxury home lots in Riverview Estates, Spokane,WA:  free and clear $150,000 each($300,000 total)
4. Tenant in common Interest in 400 plus unit apartment building in Houston,TX  Value $410,0000  (in good standing and performing)
5. Tenant in Common Interest in High quality office building Minneapolis,MN Value: $335,000 (in good standing/performing)
6. Luxury Home Cave Creek,. AZ- Price lowered to $1,375,000 free and clear  (will consider trading up  or down on this asset)

Let's Make a Deal!  Contact TMO via email or at 1.866.539.1777

The Triple Net Lease Alternative

People today wish to find other alternatives to invest in. One of the primary main reasons why companies elect to invest in many different areas is to diversify their portfolio. Working with a diversified portfolio can offer several advantages for folks and their finances. The most important thing about working with a diversified portfolio is that it reduces the risks for investors. Since their finances are spread in different areas, covering plenty of ground can make certain losses won't be as devastating compared to putting all of your eggs in one basket. Creating a diversified portfolio also opens up more chances to make money, as returns come in from many different investments. Triple net lease investments are just a number of the investment alternatives that many individuals are seriously considering today. With an NNN lease or a leaseback property investment, people have the option to invest in areas with quick and favorable returns on investment.

A triple net lease is a viable option for most investors who are thinking of extending the scope of their portfolio. An NNN lease is a kind of lease arrangement in which the tenant, also called the lessee, becomes accountable for the expenses that are pertinent to the asset that is being leased along with the agreed upon amount for the lease's rent. Because of the setup, the rent offered for the lease is typically lower than what one would expect from the particular property. Among the responsibilities that the lessee has to accept are the building insurance, common maintenance and area upkeep, and the real estate taxes on the leased assets. All the payments required are paid in net. There are many opportunities which can be beneficial in such situations, and investors should definitely explore such alternatives.

One additional alternative for most investors is the leaseback. A leaseback is a term in real estate related to a structure in which a property owner sells their own property while still staying and leasing it from the new owner. The United States is slowly coming into such alternatives today, which began as a popular thing among Europeans for some time now. Having a leaseback option, many people consider it to be better than getting a credit line that will require monthly payments. This procedure can be extremely rewarding for both the seller and the investor. However, the arrangement gives a lot of the risk on the entities buying the leaseback property. This makes it important to have a great deal of research accomplished prior to sealing the deal. There may be issues where the original leaseback property owner is coping with a lot of financial problems. There may also be instances where taxes and the IRS are involved. Investing in properties with such issues attached is undoubtedly a bad idea. Make sure that the property is well-kept and is properly managed financially first before purchasing anything.

Triple net lease and leaseback choices can certainly help people with developing a better investment portfolio. Checking out these options can definitely provide more returns while reducing investment risks at the same time.

DevinAdams is a property investor who knows how you can earn from triple net investments. You can find plenty of excellent investment opportunities that Cincinnati real estate investors can help you with.

What is Triple Net NNN? Here is triple net lease definition

Triple Net Properties News

This weeks top Triple Net Properties News: Broadstone REIT Acquires Three Additional Net-Leased Properties PR Newswire ... that Broadstone Net Lease, Inc. (BNL) recently completed the acquisition of three triple net-leased properties for a combined purchase price of $36.1MM. ...

Broadstone REIT Deploys $36.1M on Triple Play Citybizlist Real Estate ROCHESTER, NY - Taking three deeds for $36.1 million, Broadstone Real Estate LLC has picked up three triple net-leased properties in New York, Colorado and....

Nationwide Health Properties Inc. (NYSE: NHP) Upgraded by JMP By ABMN Staff The Company's operations are organized into two segments: triple-net leases and multi-tenant leases. In the triple-net leases segment, it invests in healthcare related properties and lease the facilities to unaffiliated tenants under.....

Inland Buys GA, AL Dollar General Portfolio Citybizlist Real Estate Each property is 100% occupied by Dollar General Corporation ("Dollar General"), pursuant to a fifteen year, triple-net lease expiring in 2025.....

I hope the above mention information proves useful to you.

As you know, TMO offers clients a full range of passive real estate investments and Triple Net Properties.  These real estate investments provide passive hassle free cashflows, reduce or defer tax liabilities, and provide peace of mind.

NNN Properties For Sale

What is Triple Net NNN? Here is triple net lease definition

Guest Blogger: 5 Things to Keep in Mind When Purchasing and Financing Your Single-Tenant NNN Property

Guest Post written by Colin L. Paterson, Commercial Mortgage Banker, BMC Capital, LP 5 Things to Keep in Mind When Purchasing and Financing Your Single-Tenant NNN Property:

Single-Tenant NNN Properties can be a great investment for investors seeking minimum management and optimum cash flow of their investment real estate. However, it is important that investors understand their risk when buying and financing a NNN property. While their are many variables to consider, there are 5 things that are of utmost importance to consider before purchasing and financing a Single-Tenant NNN Property:

1) Know your tenant and understand their financials. Since your property's value is directly related to the lease income, it is paramount that the tenant paying the lease income is financially viable. An investor should conduct a thorough analysis of the last two years and YTD balance sheet and P&L statements to make sure that the tenant has enough cash flow to cover it's fixed charges (rent and interest payments), and is not overburdened with debt.

2) Make sure the rent/sf is in line with market rents. Just b/c a NNN property has a high cap rate, does not necessarily mean it's a good deal, if the tenant is paying a much higher rent/sf than the market. Consider what another tenant would pay to lease the subject property if the existing tenant were to leave. Your real estate broker should be able to give you market rent comps.

3) "Location, location, location". This famous maxim holds true whether you're buying a single family house or commercial real estate. Thus, it is vital you understand the location, demographics, traffic counts, traffic generators, and what will drive supply and demand in the future. Note: a general rule of thumb for most lenders financing NNN properties is that they require the 5 mile population to be 50,000 or greater.

4) Length of the lease term: It is important to understand the lease term length and what your outstanding loan balance will be at the end the lease term. Most lenders who lend on NNN properties, require at least 15 years remaining on the lease in order give a 25 year amortization, if the LTV is 50% or greater.

5) Keep a reserve account. This is line with another famous maxim in real estate investing: "Prepare for the worst, hope for the best". Yes, even though you're buying a NNN property, it is essential that you are financially prepared if the tenant were to leave. The reserve account should be kept for 1) replacement reserves, in the event you as the landlord are required to make a capital improvements; 2)Tenant Improvements and Leasing Commissions (TILC), in the event the tenant were to leave and you have to find another tenant to move in. Yes, even though you're buying a NNN property, it is essential that you are financially prepared if the tenant were to leave and stop paying rent. Note: a general rule of thumb most lenders require is for the borrower to have a least 6 months of mortgage payments available in liquid assets to be used if the tenant were to leave.

While there are other variables to consider, keeping the above 5 things in mind before purchasing and financing your NNN property, will greatly increase your likelihood of investment success. Happy investing!

Guest Posted by Colin L. Paterson Commercial Mortgage Banker BMC Capital, LP Colin can be reached at 916-646-6334 or : cpaterson(atsign)bmccapital.com or  www.bmccapital.com