As you approach retirement, several fears usually begin to pop-up in your mind.
1. What will I do when I retire?
2. What will my lifestyle be like?
3. Can I afford to retire?
If those questions are plaguing you as you get ready to retire, please know that you are not alone. I speak with individuals all of the time who are contemplating their retirement without knowing the answers to these questions.
As an investment advisor, I am often times able to help people formulate strategies to invest what they do have today, so they have a safe and secure tomorrow.
I specialize in a different type of asset. In fact, most people don’t really think of it as a retirement solution.
Let me give you an example. Let’s say that you had $500,000 in your IRA. Because it’s more than likely invested in the stock market, the IRA could be worth $500,000 today and worth $10,000 tomorrow. “Impossible”, you say.
Would You Put Your Retirement Money Into A Slot Machine?
I know of a gentleman who worked for acompany. He had invested his IRA in that same company. About five years ago his IRA was worth around $400,000. When he got ready to retire recently, that same IRA was now worth $12,000.
It’s a shame that it happened to that man, but, what about you and your retirement? Do you have your money tied up in assets that fluctuate and make you no better off than gambling at a casino?
My specialty is Real Estate, specifically commercial cash-flowing real estate. I know what you’re thinking, “Real estate is risky business.” It can be, but not always.
NNN Lease = Turnkey Investing
I want to introduce you to a simple solution called the triple net lease or the NNN lease. This type of real estate investment product has been around for years. They are commercial properties backed by corporate leases by companies such as Walgreens, CVS, and Burger King.
Here’s how they work: Let’s say that a national drugstore chain has built a building for one of its stores. Instead of keeping all of their cash in the building, they complete what’s called a “sale-lease back.” Essentially, they will sell the building to an investor and then “lease back” the property from the investor. The drugstore chain will then guarantee the lease, usually for twenty-five years.
What makes this lease even better is that the drugstore chain will pay the property taxes, insurance, and all maintenance on the property. So each month, all you get is a check in the mail to pay your debt service (unless you paid cash).
Imagine How Powerful This Strategy Could Be For Your Retirement.
Another great point about these types of investments is that you can usually get a non-recourse loan on the property. A non-recourse loan is backed by the credit of the tenant, not the investor. Therefore, title is held in an LLC that the investor owns, but does not personally guarantee.
Now, to make this investment even better, let’s say that you are planning to retire in about ten years. If you have a investment advisor who is able to negotiate the purchase price down, then you can get a loan that is paid off in ten years. Although your cash flow will be minimal for the next ten years, your loan will be paid in full.
You Own The Building Free and Clear!
Imagine waking up in ten years and you now own a $4 million dollar building free and clear. Of course, you now have cash flows of around $300,000 per year that you can live on or reinvest. In addition, you have $4 million in equity from the building that you could either sell or hold onto.
This strategy is just one of many that investors use to secure their future. It’s really not that complicated, but I would recommend that you hire a professional investment advisor who could help you with the acquisition and negotiation of the building, as well as the financing to obtain it.
Mark Santiago is an real estate investment portfolios for Doctors, Lawyers, Dentists, and other professionals who have accumulated wealth in their IRA or 401k, or other cash bearing accounts.with RE/MAX Suburban Atlanta. He specializes in providing turnkey
You can also read his blog at: http://AeonInvesting.wordpress.com Mr. Santiago can be reached at his office: