Triple Net Zero Debt:
Review and Ranking
Challenged (1 out of 10 stars)
What is Triple Net Zero Debt?
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Triple Net Zero Debt, specializes in commercial properties that are leased by a tenant, and the landlord has no maintenace responsibilites. Also, none of the investments hold any debt, which makes them less risky (but also lower returning).
Unfortunately, last year they were already on probation as they had gone down from the minimum of 3 open investments in 2015 to 0 in 2016. they were given a year to bring it back up. When we sampled it this year, they only had one open investment, and it was the same 30 days later when we resampled. So unfortunately the rating has been removed. Hopefully this changes in the future so they can be re-ranked.
Also, they also have one of the highest fee structures in the industry. Per a site representative, the fees are: "10% of distributions up to the investor’s initial capital contribution, and then 35% for everything above that. (In addition, a 1.75% acquisition fee and the 4.75% disposition fee). 2% cost of funds ("pay for the actual cost to raise the money. Cost of the inhouse investor relations person.") + varied costs that are listed on each investment. ("Cost of Property + Legal/Accounting (if any) + Escrow/Title/ALTA/Soils costs (in some cases he Seller pays these costs)." There can be a property management fee (2% on the Regis investment). If TIC, then there is no fee for the tax return and running of the LLC". The representative claims that general and administrative costs (G&A) such as office rent, bookkeeping, advertising, utilities, staff are kept low. For example, the site owns the executive suite the business is located in.
Disadvantages: Fees are very high (as detailed above), $10,000 to $50,000 minimum is high (versus $10,000 average), and currently 1 open investments.
Where can I discuss other Triple Net Zero Debt deals?
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About Ian Ippolito
Ian Ippolito is an investor and serial entrepreneur. He has been interviewed by the Wall Street Journal, Business Week, Forbes, TIME, Fast Company, TechCrunch, CBS News, FOX News, USA Today, Bloomberg News, Realtor.com, CoStar News, Curbed and more.
Ian was impressed by the potential of real estate crowdfunding, but frustrated by the lack of quality site reviews and investment analysis. He created The Real Estate Crowdfunding Review to fill that gap.
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This site has been ranked and reviewed as part of our in-depth, 100+ site industry review. All data is believed to be correct, but may have mistakes. Please contact us if you notice one. All non-data (including rankings, investor comment summaries, etc.) are my opinion only. I'm just an investor and not an attorney, accountant, or certified financial advisor. To maintain neutrality: I do not own a portion of any of the companies reviewed.