How to Make NNN Lease Investments with Drew Wahlgren of Mag Capital Partners

 

How to Make NNN Lease Investments with Drew Wahlgren of Mag Capital Partners

 

Guest: Drew Wahlgren began his career as a risk analyst at Liberty Mutual Insurance.  He then leveraged that experience into his current role as Director of Capital Markets with MAG Capital Partners, a commercial real estate firm with a focus on the sale/leaseback strategy of NNN lease investments.    

 

Big Idea: NNN Lease Investments made through sale/leaseback agreements with owners who occupy commercial real estate can be the lowest risk real estate investments available in the market.  On this episode, Drew and I discuss the relative safety of NNN Lease Investments, the latent risks in multi-tenant industrial deals, and MAG Capital’s recent direction of simply buying operating businesses.

 

 

    

 

Dan Breslin: Welcome to the REI Diamond show. I’m your host, Dan Breslin. And this is Episode 203 on How To Make Triple Net NNN Lease Investments with Drew Wahlgren of MAG Capital Partners. If you’re in Building Wealth through real estate investing, you are in the right place. My goal is to identify High Caliber Real Estate Investors, and other industry service providers, invite them on the show, and then draw out the Jewels of Wisdom. Those tactics mindsets and methods are used to create millions of dollars and more in the business of real estate.

Drew Wahlgren began his career as a Risk Analyst at Liberty Mutual Insurance. He then leverages that experience into his current role as director of capital markets with MAG Capital Partners. A commercial real estate firm with a focus on the sale-leaseback strategy of “Net Net Net Lease Investments”, “NNN Lease Investments”, “Triple Net Lease Investments” made through sale-leaseback agreements with owners who occupy the commercial real estate can be the lowest risk real estate investments available in the market.

In this episode, Drew and I discussed the relative safety of “Triple Net Lease Investments”, the latent risks in multi-tenant industrial deals, and MAG Capital’s recent direction of simply buying entire operating businesses. Please enjoy this conversation with Drew Wahlgren.

 

Episode Sponsored by the Deal Machine:

Driving for Dollars Software to Build a Team of Drivers, Manage Routes, & Even Automate Marketing.  Free Access at  http://REIDealMachine.com/

 

Resources mentioned in this episode:

www.MAGcp.com

 

Drew & I Discuss NNN Lease Investments

  • Why NNN Lease Investments Offer Predictable Returns

  • How to Underwrite Risk of NNN Lease Investment Deals

  • Benefit of Buying with Tenant in Place

  • Shift to Private Equity & Investing in Operating Businesses


    

Relevant Episodes: (There are 203 Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Passive Real Estate Investing in Real Estate Development-with Mike Brown

Passive Investing in Real Estate Development & How to Build Retirement Income-Podcast Episode Highlights

Red Fox Capital& Red Fox Real Estate Co-Founder and real estate developer, Mike Brown joins us on this episode where we discuss passive real estate investing, real estate development, & building retirement income. As a real estate pro with a CCIM designation, Mike surprisingly excludes multi family residential real estate deals from his target, and instead focuses on commercial properties.  Mike just released his book on investing:  The REAL Perspective: Secret Investments Your Financial Advisor Won’t Tell You About.   Here are a few highlights from the show:

Target Real Estate Markets

Red Fox Capital focuses on buying investment property for the long term, and prefers secondary & tertiary markets over primary markets. His reason is lack of deal flow at reasonable prices-as the primary market attracts institutional real estate investors with low cost of capital willing to buy, or even develop assets at significant premium to market. The ideal markets should be located in areas of the country where population is migrating.

Target Real Estate Investments

As mentioned, Red Fox targets commercial properties over residential properties. Mike has found the market to have less competition and I’m inclined to agree. I personally invest exclusively in residential real estate-mostly single family or 1-4 unit properties, and I’ve found plenty of competition therein.

The residential real estate asset class attracts the largest portion of the real estate investor marketplace because it’s familiar. Think about it: people buy houses to live, then buy houses and collect rent from people living there. Everyone does lives somewhere and has either paid rent or owned their house during their life, so it’s not a stretch to invest in real estate in this familiar fashion.

On the contrary, in the commercial real estate market, owners are leasing business space to very unique businesses. There are many barriers to entry in the commercial real estate market including lease up time & financing challenges. Some properties remain vacant for a year or more in commercial while residential real estate is usually leased in a month or two. Banks realize this longer timeline is a risk to many investors, and for that reason, commercial real estate investment financing is difficult to obtain. These circumstances create the perfect environment to thrive in Mike’s opinion.

Passive Real Estate Investing to Build Retirement Income

Mike prides himself on offering “Secret Investments Your Financial Advisor Won’t Tell You About”, also the Tagline of his recent book, The Real Perspective. Those secret investments are often passive real estate investments in either long term holds, such as a portfolio of Dollar General stores Mike is currently amassing or 5-10 year real estate developments allowing investors to participate in upside normally reserved only for real estate developers.

While recent crowdsource platforms such as FundRise & CrowdStreet offer investors participation in commercial real estate projects, they are also fraught with issues such as investments failing to close due to lack of full funding, among other issues.  Like many things in business, knowing the RIGHT person can make a big difference.  In Mike’s case, knowing the commercial real estate world and being the developer offer significant advantages.

When I asked Mike to build the ideal retirement plan, he did deflect a bit, with a standard, but truthful, “it depends on the situation.” However, Mike added that often asset allocation might include index funds, mutual funds, other rental properties, in addition to some of his own passive real estate investment deals. I respected Mike’s answer for the simple fact that many real estate operators present their deal as a one-stop plan for retirement building, instead of a small piece of a multi asset class approach to supplement any social security benefits a retiree may be entitled. Enjoy!

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine.  This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals.  For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

Mike & I Discuss:

  • Passive Real Estate Investing
  • How to Invest $100K in Real Estate
  • How to Build Retirement Income

Relevant Episodes: (There are 175 Content Packed Interviews in Total)

Resources Mentioned in this Episode:

www.RedFoxCapital.co

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

How to Avoid Capital Gains Tax Using a Deferred Sales Trust or Like Kind Exchange with Carl Worden

 

Carl Worden is the founder of DeferTax.com.  Carl & I discuss how to avoid capital gains tax using a deferred sales trust on this real estate investment podcast.  There are several other ways of deferring capital gains tax including the 1031 exchange.  Real estate investors maximize their long term gains by using IRS Tax Code strategies to keep their entire seed capital growing.  This is true even when assets are sold.

 

Big Idea: Avoid Capital Gains by:
1031 or Like Kind Exchange:

  • Defer Tax on the Entire Gain
  • Real Estate Investor Tax Strategy
  • Short Deadline on Reinvesting Proceeds
  • Like Kind-Limits Asset Types

Deferred Sales Trust:

  • Avoid Capital Gains on Sale Proceeds
  • Real Estate Investor Tax Strategy
  • No Deadline on Reinvesting Proceeds
  • Works with ANY Appreciated Asset

 

Listen Now:

   stitcher

 

Carl & I Discuss How to Avoid Capital Gains Tax:

  • Legal Structure of the Deferred Sales Trust

  • Conservation Easement: How Donald Trump Avoids Tax

  • Sell any Highly Appreciated Asset and Defer Tax

 

Relevant Episodes: (172 Content Packed Interviews in Total)

 

Resources Mentioned in this Episode:

Interested in Becoming a Tax Deferral Consultant?
Avoid Capital Gains Using Deferred Sales Trust & 1031 Exchange

Go to: https://taxdeferralstrategies.com/contact-tax-deferral-strategies/

Schedule a Tax Deferral Consult: https://calendly.com/chris-defertax/tax-deferral-consultant-introduction-phone

www.DeferTax.com

www.CarlWorden.com

 

The transcript of this episode can be found here.

Transcripts of all episodes can be found here.

Investing in Your LIFE, Not Just Your Portfolio with David Blain

David & I Discuss:

  • Classes/Category of Passive Investor

  • Real Estate as a BUSINESS

  • Allocation to Real Estate as Asset Class

  • When to Seek Financial Advice


Listen Now:

Relevant Episodes: (There are 162 Content Packed Interviews in Total)

 

Resources Mentioned in this Episode:

www.BlueSkyWa.com/realestate

www.DavidBlain.com

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

Ashley Micciche on Creating Your Business Continuity Plan Long Before it’s Necessary

Ashley & I Discuss:

  • Dan Breslin’s (Me) Business Continuity Plan

  • Horror Story of NOT Planning for Estate Transfer

  • 3 Keys for Business Owners to Plan for an Exit


Listen Now:

Google Play

stitcher

Relevant Episodes: (There are 134 Content Packed Interviews in Total)

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.