Realty411 Magazine Featuring OCG Properties - Part Two | Page 9

Invest Without Drama
Do you have reservations about becoming a landlord?
Triple Net Houses created a program to help investors profit
from rental properties without ever having to deal with tenants!
I
by Carla Fischer
n 1903 The Wright
Brothers made history
in Dayton, Ohio, with
their first power airplane
flight.
One hundred four
years later, Peter Julian, CEO of
Triple Net Houses, reflects on
their short three-year revolution-
ary history that began in 2007 as
a premiere provider of real estate manage-
ment. “We’ve reinvented the way people
invest in residential rental real estate,” Ju-
lian says proudly. He then adds: “It’s kinda
(www.triplenethouses.
com) takes all the un-
knowns off the table.
By purchasing a Triple
Net rental, investors will
know exactly what their
cash flow is going to be
for the next ten years.
Julian explains: “When
Peter Julian we lease the house it’s a
triple net lease, which means we pay taxes,
insurance and maintenance. Basically we
pay all the operating expenses, so there’s
nothing our clients have to pay. We man-
there. When we rehab a property we pretty
much do everything so we know it’s going
to be a maintenance-free property. When
we finish, it’s almost like a new house.”
The company’s record is impressive. “In
the year 2009, we collected 97.4 percent of
our scheduled rent,” Julian proudly states.
“It even amazes me!”
In Dayton, market rents range from $595
to $950. The company rents with a one
year lease agreement. A typical scenario
If an investor buys a Triple Net House, they know exactly what their
cash flow is going to be for the next 10 years. They never have to deal
with tenants and never have to deal with or pay for maintenance.
overcast. We’re going to get some rain later
on, which doesn’t mean a thing for our in-
vestors who are from all over the country.
The weather rarely has anything to do with
our business, unlike the Wright Brothers.”
Julian shifts to business quickly explain-
ing how he created a NNN (triple net) in-
vesting model, which is traditionally only
found in commercial real estate transac-
tions.
“I’ve been a real estate broker for a little
over 30 years. I’ve worked with investors
my entire career. When I talk to them, most
like all the good things about real estate,
like the cash flow, the tax write-offs, build-
ing-up equity, and potential appreciation.
But when potential investors get to talking
about managing, they’ve all heard the hor-
ror stories about tenants, maintenance and
all those kinds of things.”
So Julian and his team came up with
a unique solution. It’s basic and simple,
even though it tackles a complicated con-
cept. The Triple Net Houses program
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age the property so there’s no management.
Investors will never have to deal with a ten-
ant and never have to deal with or pay for
maintenance,” Julian explains.
The company offers a 10-year NNN
(triple net) lease. If investors want to ter-
minate early, all they have to do is provide
a 60-day written notice. There is no penalty
and the investor still owns the property.
“It’s a turn-key investment. It pays a
high yield and we’re able to buy houses at
low cost and rehab them economically. We
then pass that deal on to an investor, as a
totally turn-key investment. Their total in-
volvement after the investment is to collect
a payment from us each month, which is
electronically deposited into their checking
account. It’s a perfect storm.”
When asked how Triple Net Houses can
provide guaranteed returns for investors,
regardless of what is going on with their
property, Julian replies: “We’re very care-
ful in selecting properties in neighborhoods
where we know the rents are going to be
PAGE 9 • 2010

is this: A tenant occupies a three bedroom,
one bath home, 1,100 square feet, with a
one car garage, for $700 a month. Many
homes are brick with full basements, some
are ranch houses built in the late ’50s.
Dayton is home to the largest single
site employer in the state of Ohio: Wright
Patterson Air Force Base with 26,000 em-
ployees. The city also has two universities:
Wright State University with an enroll-
ment of about 18,000, including a medical
school. Next is the University of Dayton,
which enrolls over 10,000 students and
also offers a law school program.
As far as the financials, a Triple Net in-
vestor can realize up to 17% return on each
house.
“If the investor pays cash then they
will receive 9.1%.” Julian explains fur-
ther: “For example, if they have a $60,000
house the investor will be receiving $5,460
a year, which is 9.1% of the purchase price.
Continued on pg. 47

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