Let's Look at an Example
Still confused about how NNN and NN Assets work with RealyInvest?
Here's a typical example:
RealyInvest identifies a property NN-leased to Starbucks Corporation for a 10-year initial lease including rent increases. Starbucks Corporation is rated BBB+, or investment grade, by Standard and Poor's. Starbucks is also considered an essential business during a pandemic.
RealyInvest purchases the property with our own funds, then issues shares that represent ownership in the building and land leased to Starbucks. RealyInvest members purchase shares through the RI app.
Starbucks Corporation pays rent to RealyInvest; RealyInvest distributes rental income to shareholders' bank accounts monthly as dividends. RealyInvest members track their income on the app.
RealyInvest members reinvest their rental income in new shares, or spend it as they wish. Shares may also be redeemed for their original purchase price. (See our Prospectus for details.)
Toward the end of the lease, RealyInvest seeks to extend the lease or re-lease to Starbucks or another tenant. (One nationally-traded REIT reports tenant renewal rates of 94.5% for similar properties.) This way RealyInvest maximizes the value of the property in order to sell it, distributing the final proceeds to shareholders.