The client was a residential broker and investor of multifamily for over 40 years. He owned in a good location in North OC, and was happy with the cash flow especially with his really low property taxes.
He and his wife are both retired and wanted to enjoy cash flow for their retirement income, but were tired of dealing with apartments especially with California’s tenant-heavy laws. He had never invested in NNN’s before and was initially opposed to them due to the perceived risks of investing in retail.
We had multiple meetings where he asked us numerous questions about our process, about NNN investment strategies, and how to find a safe NNN.
We answered every question he had and showed him examples of NNN deals that we liked that would make him more money and make life way easier. He ended up buying a new construction burger restaurant that’s pretty well-known in Texas that had a drive thru, annual rent increases, corporate and personal guaranty on a 20-year lease.
The property is also located in an awesome location in the Norther Houston MSA with strong demographics. The best part is, we were able to coordinate the close of this upleg the day after his downleg closed so he had no disruption in rent collection.
Overall, he’s really pleased with the exchange as we were able to help him diversify his portfolio in a brand new property that makes him more money with no management headaches so he can enjoy retirement.