Generation Income Properties News

Sobelman Starts New NNN Firm

GIP founder, David Sobelman, was interviewed by Business Observer, announcing the launch of his new triple-net-lease brokerage, 3 Properties.

Sobelman Starts New NNN Firm

Triple net lease specialist and Calkain Cos. co-founder David Sobelman has left the Herndon, Va.-based firm to start his own commercial real estate brokerage.

Like Calkain, the new Tampa-based 3 Properties is focusing on triple-net deals, in which tenants pay pre-arranged operating and other expenses such as taxes, insurance or utilities.

But Sobelman intends to revamp his brokerage business model for 3 Properties and charge clients less in transaction fees, by “drastically” eliminating overhead and expenses.

He adds that company agents will receive more in commissions than standard brokerages, and that many services will be outsourced to consultants and vendors.

“There’s more information out there about real estate than ever before, so there’s less need for traditional intermediaries,” says Sobelman.

“We plan to be the Uber of commercial real estate and triple-net lease brokerage, while everyone else will still be running a taxi company.”

Read the rest of the story on the Business Observer site.

GIPSobelman Starts New NNN Firm
read more

Triple Net Gain

David Sobelman was featured in the April 14th issue of Business Observer, discussing Generation Income Properties and upcoming milestones of the REIT.

Read the complete story on the Business Observer web site.

David Sobelman literally wrote the book on buying and selling triple net lease properties.

First published in 2010 — a time when such deals were largely unknown — “The Little Book of Triple Net Lease Investing” with business partner Jonathan Hipp is today in its second edition, and has sold more than 8,000 copies.

Now, after more than a decade at Tampa’s Calkain Cos. raising awareness and brokering such deals — in which expenses like utilities or taxes are “netted” out of gross rents and paid by tenants rather than landlords — he’s again venturing out.

Generation Income Properties, which Sobelman founded in September 2015 to target “NNN” opportunities, could begin trading publicly later this year, if it reaches certain U.S. Securities and Exchange Commission milestones.

In January, GIP attracted its 100th investor, an important SEC hurdle for REITs that is a precursor to any initial public offering. This summer, it expects to close on its first acquisition, a 7-Eleven store on the ground floor of a new residential building being constructed in Washington, D.C.

And during the third quarter, the company hopes to raise up to $20 million and begin trading on the Over The Counter exchange.

Continue reading…

GIPTriple Net Gain
read more

Debunking the Myth of Net Lease’s Simplicity

While many are drawn to the net lease industry due to the common belief of the sector’s simplicity, building a successful career in the space requires relationships and experience, and dealing with challenges along the way, advises Generation Income Properties Founder & CEO David Sobelman.

David Sobelman was invited to write the following article in the May 17th issue of Commercial Property Executive. 

I’m honored to currently serve and to have previously served as a mentor and sounding board to dozens of new people in the net lease industry. Those interested in the business or those just starting their net lease careers have run the age gamut; from undergraduate interns, new college graduates, change-of-career professionals to retirees that aren’t quite ready to completely leave the workforce. No the level of experience, before we speak to one another about the merits of a net lease property and establishing a career focused on the asset class, each one of them, without fail, has asked, “How do I get started?”

Laozi (Lao Tzu), the ancient Chinese philosopher, is famously quoted as saying, “The journey of a thousand miles begins with one step.” There is no better explanation to how one will begin their net lease career than to ensure one has a complete understanding that the path is filled with a tremendous amount of roadblocks and challenges.

Those not intimately involved in daily net lease transactions see the simplicity of the product type. They like that a net lease property is easy to explain, comes with minimal management and provides an income stream. But what they usually don’t understand are the inherit risks involved in developing, building, owning or brokering a single-tenant, net-lease investment. Developers are constantly balancing the timing of their projects and trying to forecast one to four years in the future when their property will be ready to bring to the market.

For example, I am part of a transaction that will be completed this summer in which the developer/seller signed the original lease in 2012, five years ago. It is just now fully stabilized and ready for a passive investor. Its safe to say that the market has drastically changed in that period of time, but the developer was willing to take the development risk by purchasing land, building a property and hiring endless contractors over those five years. Owners are always hoping their tenancy remains intact for the long term or, if there is an ultimate vacancy, that there is a clear, concise and expedient plan to “back-fill” that building with a new and better tenant—this is obviously easier said than done.

Lastly, brokers are always dealing with their commissioned-based positions, which means they don’t get paid until they actually perform their required duties. Starting as a broker may seem like a lower barrier-to-entry way to infiltrate the net lease industry, but early-in-their-career brokers should be ready to face some very lean years. Starting with the understanding that a new net lease broker doesn’t have any transactions to speak of, clients to fall back on, track record to tout, relationships in the industry or regular income, it should be clear that the simplicity of the business really isn’t that simple.

Net lease assets are true wealth builders, from both an ownership perspective and from the outlook of a net lease service provider. But there are dozens of people involved in the development, ownership and possible sale of any one net-lease investment, making transactions in the sector more complicated. Relationships must be built, experience must be garnered, failure must occur and risk must be taken.

The net lease industry is not simple, contrary to what most people believe when discussing the property type. With an estimated $2 trillion net lease market in the U.S., the industry should be complex, have risks and have failures. There is no secret on how to be productive within the net lease business. However, if you’re willing to take that first step, your journey will surely be interesting.

David Sobelman is the founder & CEO of Generation Income Properties (a public net lease REIT) 

GIPDebunking the Myth of Net Lease’s Simplicity
read more

REIT Growth in a Dividend-Driven Environment

While the net lease REIT industry has grown into an investment class of its own because of its stable, risk-adjusted returns, there is an important component missing from these REITs’ underwriting, argues Generation Income Properties Founder & CEO David Sobelman.

David Sobelman was invited to write the following article in the April 19th issue of Commercial Property Executive.

There are currently 15 net lease REITs that each have their own philosophy on what type of assets they acquire. Some invest solely in industrial assets, some retail assets, gas stations, or they may even be agnostic on property type but seek out non-credit tenancy. However, it wasn’t that long ago—less than 20 years—that most of these companies were either completely non-existent or few people in the investment community (money managers, broker dealers, average investors, wall street analysts, etc.) even knew what was entailed when discussing a triple-net leased property. The product type was essentially unknown, let alone the concept of a collection of properties to form an entire REIT comprised of just these assets.

Today, this $100 billion-plus enterprise value industry has morphed into an investment class of its own, entering into the forefront of stable-return investors’ minds, usually with great fanfare. I’ve had the privilege of working with thousands of people in my 15-year tenure within the net lease industry. The conversations I have with various practitioners that have been quietly entrenched in the net lease world for 20-plus years tell me that the infancy of structuring a single-tenant, net lease property began in the 1970s. Keep in mind that REITs were initially formed in 1960. The next 40-plus years have proven that net lease investments have matured to a point that some institutional investors are comfortable with investing billions of dollars of their capital in the form of stable, risk-adjusted returns that are unmatched in other aspects of real estate investment categories.

What I believe is missing from the underwriting of 14 of the 15 net lease REITs is the simple understanding that real estate matters. Of the $100 billion-plus dollars that are currently invested throughout the net lease REIT industry, there is only one REIT that emphasizes that the most value of any real estate investment, whether it’s purchased by a REIT or a family investing for future generations, is held within the real estate itself. Many of the net lease REITs are left balancing their business models between providing a market dividend for their shareholders, making sure the debt for their portfolios matches expiring lease terms, and raising money from investors for future acquisitions. But rarely is the fundamental—and simplest—form of real estate investment taken into account when determining future and growing values: the real estate itself. In essence, has history proven that a property in the middle of Washington D.C. or New York City increases in value at a higher and faster rate than a property in the middle of Iowa?

A REIT has the pressure to pay out a minimum of 90 percent of its after-expenses revenue to its shareholders, in the form of dividends, in order to maintain its REIT status. However, when a company is not allowed to reinvest the majority of its profits back into the company, there is a constant feeling that new capital has to be raised and a constant question of, “What is more important: a dividend or stock growth?” Berkshire Hathaway, one of the most respected companies on the planet, doesn’t pay a dividend. Every dollar the company generates is poured back into operations and future acquisitions. Other high-functioning companies may pay a dividend, albeit small, in comparison to its revenues and profitability: Costco is a good example, paying about 1.00 percent.

Therefore, the REIT investor is left with the question: “Can you have both a growth company and a solid dividend payer?” If the company’s assets increase in value from the time they are purchased, then the answer is a resounding “yes.” The probability of the value increasing comes from assets that are typically purchased in geographies that allow for appreciation in a shorter period of time than in secondary and tertiary market, (i.e., New York versus Iowa.)

REITs that take advantage of their appreciating assets could be a growth stock, while also providing a dividend in line with its peer group in their respective asset classes.

David Sobelman is the founder & CEO of Generation Income Properties (a public net lease REIT)

 

GIPREIT Growth in a Dividend-Driven Environment
read more

Tampa broker is big on real estate investment trusts, including his new one

David Sobelman was featured in this Tampa Bay Times story about Generation Income Properties and his vision for its future.

Read the complete story on the Tampa Bay Times web site.

Want to invest in real estate?

The hard way is finding and buying the properties yourself, maintaining them, paying the taxes and insurance, then hoping you can make at least a few bucks from renting or selling them.

Then there are real estate investment trusts, or REITs. Put simply, you invest your money with a company that finds the properties and pays you dividends from the rents it collects.

Generation Income Properties of Tampa is a new REIT. It also was the first REIT in the nation to file with the Securities and Exchange Commission to take advantage of Regulation A+, a 2015 SEC regulation that enables small companies to raise up to $50 million from the public.

So far, Generation Income has raised about $3 million from more than 100 investors and is under contract to buy its first property, a building near the White House in Washington D.C. whose sole tenant is a 7-Eleven.

By year’s end, the trust hopes to have several more rent-producing properties in some of the nation’s largest cities, including Tampa, and start trading shares publicly.

Generation Income is the brainchild of David Sobelman, a veteran commercial broker in Tampa who has managed and overseen more than 1,000 net lease transactions worth over $10 billion. (A net lease is one in which the tenant is responsible for taxes, insurance and maintenance).

Sobelman, 45, recently talked with the Tampa Bay Times about his REIT, his investors, and his forecast.

Continue reading

GIPTampa broker is big on real estate investment trusts, including his new one
read more

Net Lease REIT Under Contract with Prime Washington, DC Asset

Generation Income Properties, Inc., a Tampa, FL based real estate investment trust (“REIT”,) recently executed its first contract to purchase a property, occupied by a company owned 7-Eleven store (S&P: AA-), located in the middle of Washington, DC, just north of The White House. The new construction residential condominium building was completed in 2016 and the ground floor unit was developed to be occupied by a credit-worthy commercial tenant to support the high population density area surrounding the building.

David Sobelman, CEO, commented, “I am ecstatic that we are under contract with a property that perfectly matches the REIT’s investment criteria. Acquiring properties with the highest probability of appreciation during the REIT’s ownership, as well as having credit-worthy, long term real estate assets with prime real estate is our primary strategy. I’m thrilled to have found this street level retail asset in the heart of one of our target cities – Washington, DC.”

Closing on the asset is intended for the summer of 2017; subject to the parties’ due diligence and compliance.

About Generation Income Properties
Generation Income Properties, Inc. (“GIP”), a real estate investment trust (“REIT”), was founded by David Sobelman, a veteran net lease investment real estate broker. Mr. Sobelman is also the cofounder of Calkain Companies, one of the nations’ few real estate brokerage firms focused exclusively on triple net lease properties. Calkain has been involved with more than $10 billion in net lease transactions. GIP purchases assets with future generations in mind. GIP’s strategy is to acquire assets with credit-worthy, long term tenants solely in the top 20 highest density cities in the United States. The company intends to provide long-term stable yields to its investors, with a focus on future real estate values where the REIT has the best chances of appreciation through the value of the assets and/or rent growth. The single-tenant, net-leased investments that GIP identifies for acquisition are typically singletenant office, retail, or industrial buildings with existing leases of 10 to 25 years.

GIPNet Lease REIT Under Contract with Prime Washington, DC Asset
read more

Net Lease REIT Expands Investor Interest in Generational Assets

Generation Income Properties (“GIP”) recently reached its 100 investor milestone with investments from individuals, family offices and investment funds. The Tampa, Florida based real estate investment trust (“REIT”) focusing on triple net lease property intends to begin purchasing real estate assets for its portfolio of properties in the first quarter of 2017.

David Sobelman, CEO, commented, “I am absolutely honored that the early investors believe in the growth strategy of the REIT as well as my abilities to follow through on the scalable investment philosophy. Our industry, to many, is still believed to be in its early stages considering that the current $100 billion triple net lease real estate REIT market is forecasted by some to be a $2 trillion industry.”

Interested investors are still able to participate in this offering prior to the company being listed on the OTC Markets exchange.

About Generation Income Properties
Generation Income Properties (“GIP”), a real estate investment trust, was founded by David Sobelman, a veteran net lease investment real estate broker. Mr. Sobelman is also the co-founder of Calkain Companies, one of the nation’s leading triple net lease investment brokerage firms. Calkain has been involved with more than $10 billion in net lease transactions. GIP purchases assets with future generations in mind. GIP’s strategy is to acquire assets with credit-worthy, long term tenants with great underlying real estate. The company intends to provide long-term stable yields to its investors, with a focus on real estate that has the best chances of future appreciation either through the value of the assets or growth through lease expirations. The single-tenant, net-leased investments that the company identifies are typically freestanding office, retail, or industrial buildings with existing leases of 10 to 25 years in the 20 most densely populated cities in the United States.

GIPNet Lease REIT Expands Investor Interest in Generational Assets
read more

Generations Income Property Competes for SBRE Shark Bowl

Five Small Balance Real Estate (SBRE) Entrepreneurs will compete for a chance for a $100,000 investment at SBREfunds.com’s live Shark Bowl contest

SBRE industry founder Fairway America today selected five SBRE entrepreneurs to present to a panel of seasoned real estate “sharks” and have an opportunity to receive a commitment from one of Fairway’s proprietary funds for a $100,000 investment. The winner will be required to complete a due diligence process in order to receive the investment.

“We wanted to provide new and emerging SBRE fund managers and entrepreneurs an opportunity to develop a presentation, get up on stage, and hone their pitch,” said Fairway’s CEO Matthew Burk. “Not only will it be great fun, having a legitimate opportunity to receive an investment on the line makes it much more interesting and real. We have some very deserving presenters lined up and I can’t wait to see them pitch.”

The presenters who will be competing at the SBRE Shark Bowl are Brian Lynott from Dweller, Randy King at The Legacy Group, Michael Zajas of Brydant Inc., Aaron Gillingham with Aries Capital Northwest, and David Sobelman from Generation Income Properties.

“This group of presenters represents a great cross-section of the SBRE industry and is an excellent example of the amazing diversity of strategies being executed in the space,” said Burk.

The CapitalFlow Conference will be held annually in Fairway’s home town of Portland OR and is expected to attract leading SBRE entrepreneurs and fund managers from around the United States. The main theme for these entrepreneurs is to enhance their capacity to successfully raise capital for their SBRE deal strategy, which the Shark Bowl is expected to help promote. Burk says that Fairway has borrowed bits and pieces of different formats and structures he seen over the years and amalgamated them into a unique construct.

“The CapitalFlow Conference format has been designed by SBRE fund managers for SBRE fund managers (and syndicators) to meet the core challenges and needs of this underserved group,” said Burk.

In order to continue to help facilitate the growing SBRE community of entrepreneurs and investors, Fairway has created a unique and powerful formula that is unavailable anywhere else. In addition to the Shark Bowl, a mini-version of Fairway’s highly sought-after SBRE Investment Summit, the conference also features deep-dive content on fund management issues, capital raising strategies and tactics, and peer-to-peer experience share.

“We work with SBRE fund managers, syndicators and high net worth investors all over the country,” said Burk, a longtime fund manager and investor who will be one of the panelists of Sharks. “Because we have such a deep understanding of the practical challenges we all face, we’ve engineered the CapitalFlow Conference to provide unequaled take home value to the SBRE entrepreneur.”

Fairway will also be announcing the winner of the 1st Annual SBRE Awards in 5 categories as follows: Fund Manager of the Year, Emerging Fund Manager of the Year, SBRE Entrepreneur of the Year, Syndicator of the Year and the first ever inductees into the SBRE Hall of Fame. Finalists have been named in all categories and most or all of them will be on hand for the awards ceremony.

The event will be held at the Portland Hilton Hotel and Towers in downtown Portland Oregon. Winners of the SBRE Awards will be announced during a lunch ceremony on Friday July 29th and will be immediately followed by the SBRE Shark Bowl. The event will conclude at the Willamette Riverfront Park for the 25th Annual Oregon Brewfest, the oldest and largest gathering of microbreweries in the United States. Registration for the event is still open to SBRE entrepreneurs, fund managers, private lenders, and real estate syndicators, as well as high net worth investors who are interested in learning more about the growing SBRE alternative investment space.

“What really makes it all so powerful are the reasons why we come together in the first place – to engage each other on the challenges, strategies, and opportunities of running an SBRE business,” said Burk. “We share ideas, best practices, successes and failures, what works and what doesn’t without fear of judgment or reprisal from other managers – just mutual trust and respect for what we all have to go through to run a successful SBRE enterprise and create value for investors.”

About Fairway America
Fairway America, LLC is a longtime real estate asset based fund manager and real estate finance advisory firm providing strategic business planning services nationwide to SBRE entrepreneurs around the structure, architecture, and administration of proprietary 506 Regulation D pooled investment funds. Fairway’s related entities manage two proprietary funds, Fairway America Fund VI, LLC, and Fairway America Fund VII LP, each focused on the SBRE space with different asset allocations and investment features. Both funds consider investments nationwide.

About SBREfunds.com
SBREfunds.com is an online education, information and match-making site that exclusively lists small balance real estate investment opportunities. Created by Fairway America, SBREfunds.com provides entrepreneurs and investors with education and connectivity to better capitalize and grow an SBRE enterprise. From connection with investors to strategic capital raising plans to live events, SBREfunds.com is the definitive resource for SBRE entrepreneurs and accredited investors to understand how to successfully work with one another for mutual benefit and growth.

Neither Fairway America nor SBREfunds.com is a registered broker-dealer or investment advisor. None of the Fairway companies perform any activities of a broker or investment adviser, including but not limited to, soliciting investors, providing investment advice, negotiating securities transactions or the terms, conditions or provisions of any offering, or recommending the purchase of securities. This press release does not constitute an offer or solicitation to sell securities in any of the companies mentioned, any funds presenting at SBRE Summit events, or any related or associated companies. Investors must not rely on information provided in this press release for investment decisions.

GIPGenerations Income Property Competes for SBRE Shark Bowl
read more

Inside the First REIT to Go Public Under Regulation A+

David Sobelman, CEO and Founder of Generation Income Properties talked with Commercial Property Executive about the REIT’s unique fundraising strategy and what sets it apart from others in the net lease space.

“In today’s competitive net lease environment, companies in the space need to find ways to set themselves apart. David Sobelman is doing just that with his REIT, Generation Income Properties (GIP), which this year became the first REIT to go public under the SEC’s Regulation A+. A net lease veteran, Sobelman co-founded Calkain Cos. in 2005 before founding GIP, which started out as a private fund. But when he went back to investors asking about starting another fund or becoming a publicly traded REIT, they were interested in the latter.”

You can read the complete article on Commercial Property Executive and see the interview in the video below:

GIPInside the First REIT to Go Public Under Regulation A+
read more

Huffington Post Highlights First 16 Reg A+ Companies

The Huffington Post highlights the first 16 companies approved under SEC Regulation A+, including Generation Income Properties.

“Ever since President Obama signed the JOBS Act in 2012, the market for equity crowdfunding has grown steadily. Now, in 2016, funding raised through crowdfunding is expected to pass that from venture capital.

At the center of this revolution in business financing are the Securities and Exchange Commission’s recently enacted rules known as Regulation A+, a provision of the JOBS Act that allows companies to generally solicit and raise money from non-accredited investors. Historically, many investment opportunities have only been open to the wealthiest 3% of Americans known as accredited investors. However, the new rules permit nearly anyone to invest in companies spanning a wide range of fields, from real estate to aviation and even medical marijuana.”

You can read the complete article at the Huffington Post.

GIPHuffington Post Highlights First 16 Reg A+ Companies
read more