Some frequently asked questions about investing in TripleNetZeroDebt.com properties.

A Member (also referred to as an LLC Member) is an individual who has become an investor in one of our LLCs that has invested (in most cases) less than $100,000 in a single property. Once an accredited investor has invested in an undivided interest in one of our LLCs, they will be referred to as a Member or LLC Member. As a Member, you will have access to your own private dashboard, giving you 24/7 access to watch how your money is working for you.

A “Promote” is that portion of the transaction’s equity or cash flow (or both) that is assigned to the Sponsor as a type of compensation for his/her role in putting the transaction together and carrying out the business plan of the property. There are other forms of compensation paid or earned by a Sponsor that may also be called a “Promote.”

A Co-Owner is an accredited investor who has purchased an undivided interest in one of our properties with an invested amount of $100,000 or more. Once an undivided interest is purchased by the accredited investor, they will be referred to as Co-Owners. As a Co-Owner, you will have access to your own private dashboard, giving you 24/7 access to watch how your money is working for you.

An LLC has at least one Managing Member that handles the day to day operations of the LLC. In most cases, the principle of JDS Real Estate Inc., Jason Schwetz, will be the Managing Member of the LLC.

Existing cash-flowing, 100% leased, debt-free single-tenant real estate occupied by tenants like McDonalds, Dollar General, 7-11, Fresenius or DaVita Dialysis. These are examples of high-quality, low-risk (and often times Credit Rated) tenants that often occupy single-tenant properties.

Purchasing TripleNetZeroDebt.com real estate debt-free completely eliminates the risk of a lender foreclosure. This provides a high level of security (as well as a good night’s sleep) in the event of a vacancy. Additionally, purchasing debt-free avoids all the costs associated with financing, such as interest costs and points, which can significantly affect your rates of return.

A Reservation fee is an amount sent to TripleNetZeroDebt.com that is used to “hold” a portion of the investable amount needed aside for you until all of the money is needed to close. A minimum of $1,000 per $100,000 investment is the Reservation Fee with a minimum of a $1,000 Reservation fee. For example, if you are looking to invest $100,000 into a TripleNetZeroDebt.com property, you will send $1,000 to “hold” that portion of the investment aside for you. Approximately 15 days prior to the close you will need to send the balance (in this example $99,000) of your investment. If for any reason the property does not close, ALL of your money sent, either the Reservation Fee or the balance will be returned to you in full.

TripleNetZeroDebt.com LLC contracts with JDS Real Estate Inc. to manage the properties. The property manager ensures that the tenant complies with all the terms and conditions of the lease, coordinates communication, distributes the monthly lease payments to the Co-Owners and Members, prepares regular reports and distributes year-end financial information.

Nothing! You own the property, not TripleNetZeroDebt.com. TripleNetZeroDebt.com is only the site that showcases the properties. Although the principal of TripleNetZeroDebt.com will also be a Co-Owner with you, the status of the site will have no affect on your ownership.

Each Co-Owner receives an undivided fractional interest in the property. Therefore, each has the right to sell their portion at any time. The tenancy-in-common agreement (TIC) gives the other co-owners the first right to buy if one of the co-owners decides to sell. The resale of a TIC interest in a debt-free property is made easier because a new buyer does not have to qualify for an existing loan. All of the Co-Owners can also agree to sell the entire property whenever they choose. A TIC ownership can be listed with a real estate broker or sold by owner. Your undivided interest in a TripleNetZeroDebt.com property is not intended to be a liquid investment. A formal primary or secondary market for undivided interests in real property does not exist. Although there is no readily available primary or secondary market for undivided interests in real property, you can sell your Co-ownership share at anytime. Any price that is achievable is subject to many variables, including the basic metrics of supply and demand. TripleNetZeroDebt.com is intended to be a long-term, conservative, illiquid investment. TripleNetZeroDebt.com can also serve as a resource for a Co-Owner seeking to sell their fractional interest.

There are only two small ongoing costs a Co-Owner incurs. One is the property manager’s fee, which is typically only between $30 and $35 per month. The second is the online information storage fee. This is the cost necessary to maintain and store all of the Co-Owners information as it relates to their undivided interest in the properties on this site. This fee is only $5.00 per month.

The property manager sends a payment to each Co-Owner during the first week of each month (or quarterly) in the form of a mailed check or direct deposit into your bank account. The size of each payment determines if the payments are made monthly or quarterly. This determination is made prior to the close escrow.

The worst case scenario would be if the tenant vacated the property or went out of business. This would only cause an interruption in the cash flow. However, because there is no debt to service you would not be in danger of losing the property to a lender foreclosure. In this circumstance, the Co-Owners could elect to have the property manager find a buyer or a new tenant to lease the property. By design, TripleNetZeroDebt.com properties are smaller, well-located, freestanding buildings which are typically much easier to lease than a larger facility. It is important to point out that TripleNetZeroDebt.com only works with strong corporate tenants with excellent track records and proven business models and often credit rated.

Yes. Many Americans are taking a more active role in their retirement planning. Self-directed IRAs and other similar programs allow you to decide where to invest your money. A TripleNetZeroDebt.com property is a tremendous option for your retirement account as it is designed to provide security and a very predictable, reliable return on your investment.

TripleNetZeroDebt.com researches hundreds of potential properties prior to selecting properties for this site. The TripleNetZeroDebt.com team reviews due diligence materials and determines whether the property is a good fit for our Co-Owners. We anticipate that less than 1% of properties researched will be showcased as a result of this vetting process.

All potential properties are reviewed in-house. We go to great lengths to fully understand the variables of each property, the market statistics, the quality, track record and reputation of the tenant occupying the property. While TripleNetZeroDebt.com cannot provide an assurance to its Co-Owners or Members that the investment objectives of any given property will be reached, only a small percentage (we estimate less than 1%) of properties we review will be included in the TripleNetZeroDebt.com marketplace.

Yes. We go to great lengths to ensure the security of all of our members and Co-Owners and our data and use SSL. SSL (Secure Sockets Layer) is the standard security technology for establishing an encrypted link between a web server and a browser. This link ensures that all data passed between the web server and browsers remain private and integral. SSL is an industry standard and is used by millions of websites in the protection of their online transactions with their customers.

When you invest (purchase) in a TripleNetZeroDebt.com property, you are purchasing an undivided interest in real property. Your name will appear on title (Deed) and you will receive a copy of the title (Deed).

All investments carry some level of risk. Similar to investing in the stock market, there is no guarantee when you are investing in real estate. The real estate market has economic cycles and it is difficult to know how and when the economy will change. TripleNetZeroDebt.com has structured each property to reduce risk as much as possible. There is NO risk of a lender foreclosure since there is no debt. This means that even if the tenant of the property stops paying rent or vacates, you will not lose your property due to a lender foreclosure.

Your Co-Ownership or LLC Member status is not final until the property escrow closes, all of your legal documents are signed and funding has been contributed. When you make your investment, the money is held securely at a U.S. Bank or Escrow Company. Once the required equity target is met, the money is transferred for the sole purpose of the property you are becoming a Co-Owner or LLC Member in. If the minimum needed to close the property is not met, 100% of your monies are returned directly to you.

Yes. Either $50,000 or $100,000. The minimum investment is $100,000 for those who wish to earn the higher rate of return. Investments of less than $100,000 (however, no less than $50,000) will earn a slightly lower rate of return.

TripleNetZeroDebt.com properties typically do not have capital calls. A capital call is where the investor is required to commit more money to the property, beyond the initial investment. This is unlikely since the properties are purchased debt-free and are 100% occupied by strong tenants.

TripleNetZeroDebt.com was created to give smaller investors the ability to make direct real estate investing simple and affordable. Other “real estate Crowdfunding” sites are “platforms,” meaning that the site is only acting as a “host” for any sponsor who wishes to post their transaction on the site. TripleNetZeroDebt.com is neither a platform nor a host site. We are real estate professionals with 30 years of experience in commercial retail real estate acquisitions, investing, leasing, management and development. We find and vet all of our own properties before putting them on our site and making them available to our potential Co-Owners. You will be a Co-Owner or LLC Member along with the principal of TripleNetZeroDebt.com. Our “skin” is in it, right along with yours.

TripleNetZeroDebt.com is laser focused on high-quality low-risk commercial real estate where being part of the property ownership is available to the individual smaller real estate investor. Our goal is to attract qualified, potential Co-Owners and LLC members to www.TripleNetZeroDebt.com.com utilizing on-line and traditional means of advertising to include newspaper, magazine articles, blogs, and search engine optimization. TripleNetZeroDebt.com believes that with the ease of access to the internet and the transparency of the internet, TripleNetZeroDebt.com can deliver high-quality low-risk real estate to the conservative real estate investor. These are the primary ways that we are unique and different.

Yes. Distributions are scheduled on a monthly or quarterly basis depending on the property and the size of your distribution. The amount of each distribution is determined by the amount of rent the tenant pays per month. You will know what your distribution will be prior to the close of escrow. The amount of your distribution will remain the same until there is a change (if any) in the rent being paid by the tenant.

Generally, distributions that you receive will be taxed as ordinary income. We expect that some portion of your distributions may not be subject to tax in the year received due to the fact that depreciation expenses reduce taxable income. This defers a portion of your tax until the property is sold or liquidated, at which time under current tax laws you will be taxed at capital gains rates. Consult your tax professional for more details.

This is a common question asked, or at least it’s on the minds of investors and buyers. The answer to this question is simply, it does not matter. What does matter is that a sufficient amount of due diligence has been done on the property. If sufficient due diligence has been done on the property and the financial benefits are acceptable to the buyer/investor, then “why the seller is selling” (absent any fraud) should not matter to the buyer/investor.

Owners of properties sell for any number of reasons. Why a Seller is selling is not the question, the question should be “Why is the buyer buying?” If you are satisfied with the due diligence and the financial benefits are acceptable, then the buyer should buy and the investor should invest.