What Multi-family brokers won’t tell you?

Multi-family brokers position multi-family properties as the perfect, passive investment. That, as you will read below, is far from the truth.

1. An owner of multi-family brokers property never has to take legal action against a tenant!

Despite stringent tenant verification through credit and background checks, most multi-family tenants (across wide salary ranges and social status) do not pay rent consistently. At the extreme, a small but pesky proportion of tenants are just not trustworthy and skip before leases run out or steal fixtures from the property, causing a lot of stress, bad debt, losses and legal actions on your part. Yes, 20% of tenants will give multi-family investors 80% of massive legal headaches.

2. Owning a multi-family property is easy and that you get rent money from tenants like clockwork for doing little!

The fact is: being a multi-family landlord is actually tedious and hands-on and requires being able to thoroughly understand legal and financial parameters. The control (and thus risks taken and returns earned) that you exert over your multi-family real estate commitment is directly related to the time and energy expended in managing the business of multi-family ownership.

3. You do not have to treat your multi-family rental portfolio like a business.

This means that you must either hire a property management company and pay up to 10% of annual rents, or personally attend to the nitty gritty, such as tenant calls at all odd hours, painting, cleaning, repairing, maintaining systems, negotiating rents and showing property. Asset abuse is rife and any mis-estimate of remodel costs or rents of a property can cause a highly diminished rate of return.

In complete contrast, the essential benefit of NNN investing over multi-family is that triple net investing is stress-free. Investors are not hands-on, so investors do not need to get involved in day-to-day tenant issues. All an investor need do is use the help of a well-reputed NNN advisor, identify the right property, select the right investment-grade tenant and structure the deal correctly. From there on, the maximum effort you make is to read the email notification that your monthly rent check came in!

With owning a NNN property, risk as a passive investor is minimal, and returns are stable for long terms with balloon appreciation. Wealth is thus generated, increased and using 1031 exchanges and trust mechanisms, NNN properties grow inter-generational wealth. Thus, NNN property investing is a niched investment system for those that know. However, consider buying a NNN investment property only with the advice of a highly knowledgeable, skilled and experienced broker who has demonstrated the ability to arrange profitable net lease deals, repeatedly, over decades.

Call Robert Gamzeh and his associates at the Triple Net Investment Group for the best NNN investing advice, bar none. 202-361-3050.

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