Triple Net Medical Office Opportunity | Titan Impact Group

Okay, so welcome, everyone. This is Katherine Bell with Titan Impact Group. And I am really excited to share with you today about one of my favorite investment opportunities. And any of you who have listened to any of my videos or follow me or have had conversations or calls with me, you know, I love a couple of things. I love to be the bank and I love to rent dirt. And what's super exciting about triple net lease, commercial medical office space is that literally it gives us the opportunity to do both. And we're going to talk more about that. And so the other reason that I love this particular asset class is that when it comes to our economy and all the things that are happening politically and you know, all that, there's a huge amount of concern, of course, with the stock market and just all the things that are happening. So what I love about this is that it gives us the opportunity to invest in something that will always need, which is medical care and bringing it to more and more communities. So no matter what's happening, if the economy is going up or down or anything, it doesn't matter. Again, we're always going to need medical care, which again, for me as a mom, making sure that I have that stability and that predictability inside of my investment portfolio and for my investors is a crucial piece to why I particularly love this particular asset class and continue to invest in it over and over again with all of our investors. So with that, we're going to dive in so that you get an overall view of it. If this is something that you are interested in, make sure that you either email me or set up a call with me and let me know that you want to be on our VIP list because these do get over subscribed very quickly. And so we want to give you first opportunity to be able to participate in these as they come up as an investment opportunity. So with that, you know more about me and I would love to introduce you to my partner, Adam. Him and I have been working together and collaborating on different projects and business partners for well over a decade now. We've had quite the journey and he's been with us the whole way. So, Adam, I would love for you to share a bit about you and you know, our journey and then of course, this exciting investment opportunity that we have together.

Yeah, no, absolutely. Thank you, Katherine. And yeah, it's been. It's been a fun decade plus getting to work with Katherine and really getting to drill down to her passion of leaving every person, property and community better than she found it. And I, when she first told Me that I latched onto it because I am also very passionate about helping the average entrepreneur, and I saw a lot of overlap there. And so as we dive into this medical office, I'm excited to be able to share with you kind of what we're both passionate about, which is helping people. And for me, it really. It's empowering the average entrepreneur. Right? And so when I looked back, and I've been doing commercial real estate for close to 20 years now, I've learned a lot both from the developer front, from being a broker, developer, property owner, et cetera. And I learned that all of the big guys. And when I say big guys, think of your Starbucks and your Burger Kings and your McDonald's. You see them on every corner, and there's a part of me that would go, man, I understand how expensive construction is. I understand kind of how the game is played. How are these guys growing so fast? How are they opening so many locations? And if you really boil it down, boil it down, you see that it's the power of a commercial lease, right? The finance ability of that commercial lease is very, very, very powerful. So even though Starbucks and all these other companies have billions and billions of dollars, they aren't the ones footing the bill for that new location. They are leveraging the finance ability of that commercial lease to have somebody else go open up that location and using somebody else's money to go open up.

That new location and rent dirt.

Yep, yep. Just like Kathryn preaches. So we take those same principles, those same tools, if you will, and we give them to the average entrepreneur. Right. Specifically in the medical space, so they can grow just as fast and they can be empowered, just like the big guys. A Starbucks or a McDonald's or whatever. So jumping in here. So, yeah, I'm very, very passionate about empowering the medical entrepreneur. I have family members that are doctors and, you know, seeing what they go through day in and day out, and their heart really is wanting to help those in need. And so I feel very passionate that my talent is not in the medical, you know, being a doctor, but it's in real estate. And so I want to take my talents and abilities to help them grow. And so what we offered is access to our expertise. We help them grow by leveraging the power of a commercial lease. And really what it comes down to is we're able to tailor the solutions to them to help them grow where it makes sense for them and how it makes sense for them. So to really understand this, you have to understand and appreciate the power of A commercial lease and specifically what's called a triple net lease. Right. That's the terminology. And I'm going to give this in the context of your traditional property owner. Right? So let's say you own a home or you own an apartment complex and you're going to rent it out. Right. And let's say that you're going to rent out each unit for $1,000 a month. Right? You're going to collect that rent. Well, from that thousand dollars, you as the property owner, you have to pay the property taxes, the property insurance. If the toilet goes out, you got to replace that. The AC goes down. You've got to fix that. We're very sensitive to AC. It's 100 who knows what hot right now in Phoenix. But the power of a triple net lease is you transition all of those financial obligations from the landlord's responsibility to, to the tenant's responsibility. And so it's very, very impactful and powerful from a landlord perspective because now all of a sudden your income is much more predictable. You could understand, like, okay, if in five years, if the AC goes out, I don't really have to budget for that. The tenant does. Right. And again, tenants eagerly sign up for these type of leases because of the free rent and because of the construction budget that we're able to give them that they're willing to, they're willing to sign up for that and to take on some of those financial obligations. So again, as you know, as any good real estate investor knows, it always comes down to mitigating risk. Right. And so again, the power of our program with the triple net leases and what we do is we do everything we can to mitigate those risk, and we do it by having that triple net lease executed with the medical tenant prior to us even buying the real estate. Right. And again, I can't stress how important that is because now all of a sudden you took kind of all of the unpredictability and all of the risk out of the equation. Right. Again, if you're. I know Kathryn's been involved in several kind of fix and flips with either homes or apartments. So think of that model. Okay, I'm going to go buy this old apartment complex. I'm going to dig into the construction process and fix it up, and then I'm going to be able to hope to rent it. Well, anybody who's done serious investing, they know a couple of things. One, they know the construction never goes like it says it does. Right, Catherine? It's always more expensive and it always takes Way longer. And then also, it never rents as quickly as what you think it will. Right. You're always having to give up some concession, free rent this, free rent that, or, you know, some other concession. And so it just takes your overall investment and your return and it downgrades it. And so what we do to help make our investments much more predictable is we ensure that our leases are executed before we ever purchase the property. And in our leases, we state we're going to give you a certain tenant improvement allowance and we're going to give you a certain amount of time for construction. So ultimately, if the construction costs go over or if the construction timelines take longer, those are the risks that are borne by the tenant, not by us as the investors or by the landlords. So what it does is it shifts the financial risk considerably from the investor or landlord and it makes our transactions much more predictable and much easier to forecast and see what it is we're going to be able to do. So why invest in medical office space? So Kathryn touched on this a little bit. Part of it is just if you look at our economy, it has been driven by the baby boomers for the last 10, 15, 20 years, and it looks like it's going to be continued to be driven by that for the next 20 or so years. And so we invest very heavily in the medical space, one, because we believe in it. And two, it's very, very resilient to any other economic factors. Right. And the tenants that we partner with us, that they see us as a true partner, they're able to grow faster and open more locations because we provide the tenant improvement dollars and because we're willing to buy buildings for them. So they look at us as a strategic partner and we look at them as also a strategic partner. That is where their business is very, very resilient to any other economic factors. And so because of that, it creates a great symbiotic relationship where we help them grow. And we know we've got a great solid tenant that that's going to be in business irregardless, kind of what the future brings. So I think it's a great relationship. A couple of case studies. So these are just a couple of a snapshot. Part of what we do as well is we get very long term leases in place. Typically, you know, 10 years is about the shortest we go, but typically we'll get a 15 year lease. And, and again, the power of that is now your deal is very, very predictable. We have predictable increases in the rent every year. They're Triple net leases. So the tenant takes on the responsibility for the management of that asset. And now we have great investments, long term investments that are very, very predictable. This one in Florence we did a couple of years ago. We bought an old Circle K that was all boarded up in Florence, Arizona. We turned it into a beautiful physical therapy location that was rented by one of our national partners. We got a 12 year lease with them and we were able to return a 22.13% return on investment to our investors. This one in Ohio is one that we purchased last year. We still own it, but we received an offer. I don't think we're going to take it because it's a little bit under what we wanted to get for it. But if we accepted that offer, that would be the projected return for our investors.

What type of medical practice is that one in Ohio?

So the one in Ohio, Yeah, it's interesting. It's actually a national veterinary group.

Yeah.

So one of our, one of our partners is a national veterinary group. And so it's kind of cool that we're able to provide kind of that medical care to animals as well.

And for those who don't know the animal, like pets, that is a multi, multi billion dollar industry.

Yeah.

Oh, you can go do some research on that. Which again, which is why we lean into that as well.

Yeah. And in some ways it's more predictable and easier than the traditional medical because you don't have all the insurances, the complexity and that's really getting into the weeds. But some of these medical tenants, you know, it depends on what insurances they run and whatnot. It depends on their viability. The vet space is a little bit different because it's all for the most part cash pay. So it's a little bit easier to predict their businesses. And then this last location here in Virginia beach, we got a 15 year lease on that and we've got a projected return of 27.65% for our investors. So again, from my perspective, like, those are great numbers, but at the same time, I like the predictability. I could tell you if you asked me, hey, Adam, in year five of Virginia beach, what's our income going to be? I could tell you down to the penny what our rent is going to be and what our NOI is going to be in year five or 10 or 11 or whatever it is just because of the power of that triple net lease.

So what I love about what Adam just shared is that again, as a mom needing that consistent, predictable, you know, income and revenue And ROI for my investments. Again, that's why I love this. There's nothing sexy about this. There's nothing exciting about this. There's no like crazy amazing, you know, HGTV shows we can do on this. However, the adding commas to the bank account and bringing that peace of mind and that certainty, that is a really important piece into why I like this particular asset class. So, so the next steps are for you to join our VIP list. And so how do you do that? You, you know, you either email me and let me know or you can set up a call and we can have a conversation. And then if that's something that you want, you know, we add you to the VIP list. And what that does is any new opportunities that we have that Adam brings to the table, that when we have those, then we, you're the first to learn about them. They usually over subscribe very, very quickly. And so we want to sure that you put you to the front of the list so that you can learn about them. We have, we hold webinars and calls so that you can learn about the asset, that particular asset, that medical group, all of that. We give you all the details and then if it's something that you're interested in, then you go ahead and you make sure that your legal team, your accounting team, all of them review it, you sign the documents and then of course wire the money and we start adding commas to your bank account. It really is a simple, simple process. So that is your call to action is to schedule a call or email me so that you can get on the VIP list and then we just start investing and you know, when Adam brings these deals to the table. So with that I thank you for your time. I hope that this was helpful and you understanding at a 50,000 foot view. And we will be bringing more of these online. Adams in the middle of having conversations with multiple very large medical groups who are very excited about him doing this for them. And I'm excited about having everybody come on board to be able to make an impact. You know, you get to make a difference while your, you know, your dollars are going out there working harder for you than you work for them. So we love this part of impact investing. So I look forward to hearing from you and I hope that you all have an extraordinary day. Bye for now.

Thank.