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Get Realy Real: Your 101 Guide to NNN Properties

What is a Triple-Net, or NNN, Property?

NNN

An NNN property is a parcel (building and/or land) of commercial real estate leased to a corporate tenant who is required to pay rent to the owner and pay all expenses associated with the property (such as utilities, maintenance and insurance) for the life of the lease. NNN lease agreements usually include regular rent increases over the term of the lease, ensuring a growing income stream for the property owner and helping to raise the value of the property.

Properties with these stable, long-term commitments to pay rent have been bought and sold in the marketplace for many years. They have provided a secure, stable source of income and asset appreciation to wealthy investors and their families for generations. Now with RealyInvest, even beginning investors can participate in NNN investing.

RealyInvest and NNNs

RealyInvest curates and selects NNN Assets to offer to our investors. We select the best name brands in America -- names you know and use everyday, like a Taco Bell restaurant or a Verizon phone store. These tenants are either investment grade, as ranked by Standard and Poor’s, Moody’s or Fitch, or are successful franchisees operating a hundred or more locations. If a targeted NNN Asset is not available at time of investment purchase, a similarly situated NNN Asset will be offered.

Part of the curating process is to try to select the best name brands in the best locations. Some NNN Assets will bring in a little better dividend payment and some will bring in a little less, but can make up the total return by virtue of having an excellent location.

RealyInvest plans to hold a property for up to the life of the initial lease and / or lease option period and sell the NNN Asset at a fortuitous time, usually when a new lease is signed-a period of about ten years or when the lease extension periods expire. Sale proceeds will then be distributed to all RealCoin holders in that property.

RealyInvest Introduces RealCoin: A real property based coin for a new generation of investors

Through our GetRealyReal program, beginning investors can invest in NNN assets by purchasing RealCoins. RealCoins are equity tokens representing partial ownership interests in a NNN Asset, such as a property leased to Starbucks, or a building and land leased to AT&T Wireless. Each RealCoin’s value is tied to the value of a particular NNN Asset.

The RealyInvest app will provide each investor with a dashboard that gives access to our permissioned network. The dashboard allows RealCoin investors to monitor their holdings and their share of asset related income. RealCoin will have functionality within the RealyInvest network, which RealyInvest plans to migrate towards the blockchain in connection with the sale of the RealCoins.

The sale of the RealCoins will be through a registered offering pursuant to Regulation A+ and upon qualification, the RealCoins will be unrestricted. We anticipate that upon launch of the network, RealCoin holders will be able to to transfer and trade their RealCoins within the network. We may also seek to list the tokens for trading on external exchanges in the future. However, there is no assurance that a secondary market will be developed or that RealCoins will be tradable on the network or otherwise. RealCoin is intended to be a long-term investment, and there may not be a secondary market for the sale or transfer of the Coins. An investment in RealCoins represents a long-term investment as part of a portfolio.

Let's look at an example

Still confused how NNN Assets work? Here's a typical example:

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RealyInvest offers the opportunity to buy RealCoins which represent an economic interest in a NNN property which is leased to a Verizon store under a 10 year lease which contemplates regular rent escalations and three 1=year extension options.  Verizon Corporation is rated BBB+ by Standard and Poor's,.

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RealyInvest investors buy RealCoins representing a preferred equity interest of ownership in a RealyInvest entity which owns the land and building for this lease. 

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Verizon Corporation pays rent to RealyInvest and RealyInvest distributes a portion of that rental income to RealCoin investors associated with that asset.

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Toward the end of the first 10-year lease, RealyInvest sells this NNN Asset based on its increased rent revenue, and distributes the proceeds to the related RealCoin holders.

Why Invest in NNN properties?

Steady income and long-term growth

NNN properties provide a long term, steady source of income with a much better yield than most other similarly conservative investments.

Rental Income

RealyInvest strives to achieve regular distributions of rental income for our investors. This rental income is usually substantially higher than interest paid by a bank or money market account.

Straightforward

NNN tenants are obligated to pay all expenses, as well as rent. Rent payments generally remain the same or rise as the lease matures, regardless of whether the stock market moves higher or lower. RealyInvest investors are not responsible or liable for any funds beyond their initial investment and monthly fees.

Transparency

There are no hidden fees or complex formulas. Rent is paid by tenants and the RealCoin holder’s allocated share of income  is posted weekly on the holder’s dashboard and paid out or re-invested quarterly. Sale proceeds are paid out to the RealCoin holders upon sale of the NNN Asset.

Performance

Historically, these types of investments have outperformed the stock market. While the S&P 500 stock index appreciated 55% since 2000, premier commercial real estate has appreciated 144% (Source: Yahoo Finance). Of course, past performance is no guarantee of future results.

Diversification

RealyInvest plans to offer our investors the chance to build a diverse portfolio of premier or investment-grade properties with leases to the well known American businesses.

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