Commercial Real Estate Investments
How much money do I need to invest?
Great question to which there is no correct answer. The answer lies in your risk tolerance and the amount of cash you are wanting to invest. As a general rule of thumb you will need at minimum $100,000 of liquidity to even begin considering getting into a commercial property; even at that you will need partners or considerable leverage (debt) .
​
When do I need to have the money ready for investment?
Your money needs to be liquid and ready to wire 1 day prior to expiration of the due diligence period.
NNN Investment Common Questions
What is my involvement with the investment?
Your involvement can be as much or as little as you like. Most of our clients have no time to manage their investment; they simply want to be kept informed of major issues and receive their monthly income distribution on a timely basis. However; if you want to have 100% control and management of your investment that is also an option. If you choose the latter we can help guide you on the necessary steps.
What happens when the NNN lease expires?
When your lease expires so does the income! Not only does the income stop but your financial liability to cover all the expense of the empty building starts. Think of it as a double whammy that you want to avoid at all costs. It is VERY important that you have an good understanding of the potential carrying costs of a dark building (property taxes, insurance and maintenance costs just to name a few).
​
Property Tax Map Good vs. Bad
When can I get my money out of the investment?
That all depends on what the ownership structure of the investment is.
If you are the sole owner then you have 100% control of when you decide to sell your property.
If your investment is within a LLC (Limited Liability Company) then it your ability to sell the property is controlled by the operating agreement of the LLC. There is no standard operating agreement; it is up to the member of the LLC to determine when and who decides to sell the asset.
​
If your ownership is within at TIC (Tenants In Common) then you have 100% control of when you decide to sell your portion of the asset. Understand that selling a partial ownership of a property can be less marketable than sole ownership.
​
Can I use my 1031 Exchange funds?
This is a question that you will need to ask your personal accountant or a 1031 Exchange attorney. We have an existing relationship with a 1031 Exchange law firm here in Colorado Springs that would be happy to assist you or point you in the right direction. Click on this link to be directed to theIRS web site discussing 1031 Exchanges. https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031
​
What do you charge for asset and or LLC management?
That depends on what services we are providing but you can estimate 4.5% of annual NOI (Net operating income).
Are we locked into using Counter Balance, LLC for certain period of time for asset or LLC management?
Nope. You can terminate our relationship at any time; no questions asked. Simply drop us an email stating that you will no longer need our services. This guarantee does not pertain to value add projects; just NNN asset and LLC management.