You know recurring revenue. You've sold it, pitched it, and fought for it every quarter. But what if you could own it?
Triple Net Leases — known in the industry as NNN properties — are the commercial real estate equivalent of a contract that auto-renews, where the tenant handles the overhead and you collect the margin. No midnight maintenance calls. No chasing down repairs. Just predictable, long-term cash flow backed by national tenants with serious balance sheets.In this episode of The Capital Shift, NNN specialist Tom Rauen breaks down an asset class that most high earners have never considered — not because it's too complicated, but because nobody ever explained it in plain language. If you've been stacking W-2 income and wondering how to make it work harder without adding another job to your plate, this conversation is for you. In this episode:
What a Triple Net Lease actually is — in plain English
Why the tenant pays taxes, insurance, and maintenance (and why they're okay with that)
How to evaluate a deal like an investor, not a landlord
The tenant creditworthiness question that separates good deals from great ones
What high-income earners get wrong when they first enter this space
🔔 Subscribe and hit the bell — new episodes drop regularly on The Capital Shift.
Show Notes:
which is the overarching premise of the
capital shift program, Tom Rowan, which
is this notion of as you are more
successful over the course of your
career, you have more resources than you
may have had when you first started. And
so consequently as your resources grow
and improve your thinking has to change
from being a capital accumulator to
being a capital deployer. As you are
going through that metamorphosis, you
actually are going through a bit of an
identity change in the process. So hence
the name the capital shift program. So
welcome Tom. Happy to have you.
>> Yes, glad to be here. So you want to
tell all the stewards out there a little
bit about Tom and your background and
how we found ourselves on this happy
program today?
>> Yeah, for sure. So I found it 1800
t-shirts 20 years ago right out of
college. And so that's been my primary
job as a a small business owner, as an
entrepreneur, uh growing that business
now to 40 employees and you know pretty
pretty full staff. And during that
process, as we were continuing to build
the business, we were running into a lot
of problems entrepreneurs have is um we
were making great money, but the tax man
would come knocking out the door. So, I
knew, you know, a lot of very wealthy
people use real estate as a vehicle to
create passive income. And the other
part was like as a business owner,
entrepreneur, like I wasn't sure what
retirement looked like, whether that was
an age or money amount or something. And
I wanted to have that diversification on
hand to you know kind of have a back
stop I I guess you could say but then
also to you know be earning some passive
income um you know besides that and
building some wealth in the background.
So we started investing in commercial
real estate primarily triple net lease
focused and so that is big names uh so
our tenants are like Starbucks and
Arby's and Applebee's and national
franchises with 10 to 25 year leases and
the reason we focus on that asset class
is because as like a full-time business
owner you know no different than someone
else that has a full-time job um I
didn't have the time uh to dedicate to
dealing with tenants and toilets and all
this other stuff. And I'm not like a
handy dude. So, I can't I'm I can fix
maybe a few things, but I'm not really.
So, I didn't want to like be fixing
stuff and having to like, you know, deal
with like I don't even like to fix stuff
around our own house, let alone somebody
else messing it up, right? So that's how
we found this asset class and it's
absolutely phenomenal asset class
because I truly believe it's the only
passive asset class that's out there.
The rest of them are actually a lot more
work. Um this is the only true one that
you can set it and forget it and you
know there's there's not all these other
things going on. So that's that's why we
love this asset class. It worked out
really well because we could build our
lifestyle around it, whether that's with
work or with family or traveling and
everything else. And as we look towards
the future of, you know, retirement and
things like that, this asset class still
offers all that freedom and flexibility.
>> Well, and unlike some of the other
operators and the other classes that
we've interviewed as a part of the
program, there's weights and balances.
you know, we're we're teaching the that
are consuming this product how to learn
the four different sort of measures that
someone who's making a real estate
investment is generally seeking. And you
know, the fun part, Tom, like in many
ways, you just described most of the
people who are going to be watching the
program because they don't have time for
another job, just like you didn't have
time for another job. They're already
doing a lot of work for the thing that
makes them the significant amount of
money that their jobs afford them. And
the idea of taking on a complete other
set of tasks seems like the worst
possible idea in the world of everything
to most of these people because they're
putting their heart and souls into what
they're doing, you know, in solving
problems for their clients. So the idea
of then having to take on this added
responsibility is just like okay so
you've clearly most likely gotten these
people's attention around like yeah that
sounds exactly right. So break it down a
little bit more about why you believe it
is truly passive like and and when we
say triple net like there may be people
who doesn't even know what the heck
we're talking about right so let's
unpack it a bit for folks who maybe are
a little uninitiated.
>> Yeah this this got me super excited when
you sent me this. So tax efficiency,
equity leverage, cash flow creation,
capital velocity.
>> Yes.
>> Now there's some other asset class where
you might get one or two of those,
>> right?
>> I'll tell you what, I don't know the
scoring system. Uh looks like a one,
two, or three.
>> Yeah,
>> we're scoring like fives on all those,
maybe even higher. Like off the charts.
Uh
>> all right. talk to the people like what
what what makes this so unique that the
scores would be so
>> here's here's the unique part and I
don't like I I kind of like to keep this
hush hush because um but I'm going to
let you guys in on a little secret. This
is truly the best asset class. And the
reason it's I call it a secret is
because most people don't realize you
can actually own these properties. You
will never see a for sale sign in front
of Starbucks or in front of McDonald's.
Right? you're driving down the street,
think of when you go to get coffee in
the morning or any of the hightra areas
in your city, you never see them for
sale. So, that's why they're actually
they're easy to get but hard to find
because people don't know some of the
inside tricks on getting these
offmarket. They're not listed with, you
know, traditional realtors and stuff
like that. And typically these are owned
by big private equity or big hedge funds
and stuff like that. But they're also
owned by investors just like you and me.
So what these properties look like when
I say passive and completely hands-off
triple net lease. So to simplify the
jargon and the the terms of a triple net
lease, it basically means the lease
terms are set up that the tenant pays
all the property taxes, all the
insurance, and all the maintenance. And
not only pays for them, they take care
of it. We don't even have keys to the
property. It's not even turnkey because
we don't have keys.
>> Right. Right.
>> They literally
the monthly rent. So we didn't get a
rent check. So, we're not depositing a
check either. It's AC directly into the
bank account. We pay our mortgage to the
bank and the rest is the cash flow that
we get to keep as passive income.
There's no other bills. There's no um
other like, oh, what about this? What if
we have to fix this? What do we have to
do this? That that's not a thing. It's
all structured in the lease that the
tenant covers all expenses. They take
care of it. They handle everything. And
there's not another asset class that can
do that um for you. And so it covers it
checks so many boxes. I'll just start
with tax efficiency standard.
>> Yeah. Like this is the best part. Like I
don't even need to interrupt you because
you know what levers it is that people
are interested in hearing about. So
>> we're pulling all the levers and we're
not just pulling the lever. When I say
like some of the other asset classes
might pull a lever or two, the powerful
thing here is when you can stack and
compound each of the lever on top of
each other because then it's just like
it's creating this flywheel effect. Um,
and that's when like you really just
start a lot. So to put this into
perspective again, I'm going to just say
this against all other asset classes
because it nothing even measures up. We
have 45 properties, 95 tenants because
some of them aren't single tenants, some
of them are strip centers as well. My
wife manages all these properties in
less than 10 hours a week. Now, this is
a $100 million portfolio. There is no
other place you can have a $100 million
portfolio with less than 10 hours a
week.
>> Correct.
>> And so, let's start off with tax
efficiency standpoint. So from tax
efficient standpoint um we can do a cost
aggregation and move up the
depreciation. What that means is instead
of on a commercial property you
typically write off the value of the
property over a 39-year period. With a
cost seg we're going in and saying okay
the parking lot is worth this. Um, and
we've got professionals that are doing
this. And on like a medical building,
they're going in saying, "Okay, we've
got additional infrastructure in here
of, you know, certain um electrical
specs. They've got coolers. They got So,
they're going in and kind of dissecting
every little part of the building and
say, well, instead of over 39 years, we
can bring this up to five years." And so
from a tax perspective, we're writing
off um a huge loss. Even though it's
cash flow positive, from an accounting
perspective, we're writing off a big
loss. Then there's two specific asset
types in the triple net lease space
where you can get 100% bonus
depreciation um basically of the
purchase price in year one. And that is
car washes and gas stations. So, if you
had a big exit of a business um where
you or you sold some shares or you know,
we see this a lot in the the tech world
where someone gets bought out or
whatever the case is and they've got a
big tech problem. So, let's just say
that number is they've got to write the
IRS a 2 million check.
>> Ouch.
>> Ouch. Well, so these properties were
putting uh let's say 20% down payment.
So, we could buy a gas station or car
wash for $2 million. Okay, that's
purchase price down payment $400,000.
Okay, so instead of $2 million check
going to the government, we've got
$400,000 check going to uh towards the
down payment of this property. The $2
million um because that's the cost of
property, we can write off that full
amount. So now the amount going to the
government is zero. only cost you
400,000 and you've got an income
producing asset that's going to
continually uh increase in value, pay
distribution and increase uh over time.
So like how does that sound instead of
writing a check to the IRS? Um why would
you want to do that? And for the
operators that have spoken to this
listener base and from the conversations
that many of our subscribers are already
having with us, everyone immediately
flocks to short-term rentals because
that's what everybody wants to hear
about, right? But when you start digging
into that asset class in comparison,
this is when we start saying like, okay,
didn't we just say you already have a
job? I swear we just said that you
worked you worked at a tech job that
requires a lot of your time and
attention and passion and so now you're
going to go manage a short-term rental.
>> You know, short-term rentals is real
estate. It's actually uh you're getting
in the hospitality business disguised as
a real estate investment. Um because
you've got to have the customer service,
everything else. So, the other part we
look at on this when we compare um the
triple net lease commercial real estate
to any other asset class is um some
people are really big into numbers,
right? So, we've got our spreadsheets
and we're doing this analysis and it's
all right, I'm getting an 8% return on
my invest and maybe a 10% cash on cash
return and all this these these other
numbers, right? And it's like what is
because ultimately it's like what is my
return on invest versus if I was just
going to put it in the stock market or
even a CD in the bank, right? Like what
how can we maximize this return? And we
of course look at that but there's
couple um things that most people don't
factor in and I it's ro and ro.
>> Okay.
>> Nobody knows what that means because I
think I made both of them up.
>> It's I've got one of them. It's return
on time.
>> Yeah,
>> that's RO. And then Ro is is two things.
Uh return on headaches and return on
hassle.
>> Okay. All right. Fair enough.
>> I want a 100% return on time, headaches,
and hassle. I don't want to deal with
any of that stuff. So, that's why I love
this asset class. Some guy talking to
he's like, "Oh, yeah. Last year we made
uh with our short-term rental, we made
$56,000." And and I was like, "Oh, that
that sounds decent." And I was like,
"How much time did that cost?" He goes,
"Uh, my wife, it's about 35 hours a
week."
>> Yeah.
>> I said, "So, you bought her a $50,000 a
year job,
>> right?"
>> Um, and so that's the big thing. The
other is as these properties because
they're so handsoff, you can start um
what I call stacking them. And after a
couple years, you're building up equity
because you're paying down the mortgage
to the bank. They're increasing value.
So now you've you've unlocked some
additional equity there and you can
refinance or take out a second note
against this property um to buy a second
property. Now you've got two working for
you and you can keep compounding and
snowballing that and that's how we've
been able to really grow our portfolio a
lot. Um and with that banks love these
types of properties. So right now, uh,
for a single family home or multif
family, banks are lending at between 7
8%. For these types of properties,
they're not just looking at your credit
score. They're looking at the credit
rating of the tenant. And Starbucks, you
know, they're they're a highly rated
tenant, publicly traded company. And so
we're able to get financing right now on
these properties for 5 12 or 6%. Um
they're love they also love you because
the nature it's a 10 to 25 year lease.
It's longterm. We're not worried about
this tenant turnover and it being vacant
for a couple months and all this other
stuff. It's like no, these guys are
here, you know, for the long haul. And
so I like that predictability as well.
So as much as we look at um the returns,
we also look at the stability and the
risk and I'm all about because we work
so hard for our money, right? I'm all
about risk protection and capital
preservation. It's one thing to make
money. It's another to protect it and
protect the downside risk. And so when
we're looking at these, we look at the
value of the property and I say, "Okay,
we're buying this for a million dollars.
Um, what would be the cost five years
from now or 10 years from now, if this
was a vacant piece of land and I had to
rebuild this building on a million-
dollar property that we're acquiring
today?" I look at that and say, "Okay,
well, if I was going to buy this piece
of land, then build a building and find
a tenant for it five or 10 years from
now. If that number is like two or three
million, then we're sitting in a pretty
good position."
>> Yeah, for sure. 100%. And, you know,
we're talking about leverage and we'll
just go back to short-term rentals for
just a moment only because there's been
so much activity and buzz around
short-term rentals when it comes to tax
efficiency. But when you think about the
equity side of things, there's a lot of
commonality. It's it's equity paid down.
It's there's notes on the property that
are being paid, but the the velocity of
appreciation in uh commercial properties
versus residential. You want to talk a
bit about like how those two do not tend
to track in the same Yeah, they're
completely different. Um you know, the
one thing with these commercial
properties, it's really based on
numbers. There's no emo, you can't have
emotion involved with it. when you start
getting emotionally involved, it sways
your decisions and things like that. And
with a short-term rental, especially if
it's in a really nice place, it's easy
to get emotionally tied into it,
especially if you're thinking, well, I'm
going to use this as a second vacation
home or something like that. Um, and
that's going to kind of change some of
your decision-m things. But with
commercial properties, uh, regardless of
kind of where the market is or even
interest rates for that matter, the
value holds strong because you've got
these big private equity companies,
hedge funds and stuff where they're just
paying all cash. So, they're not even
relying on bank financing. So, that
keeps the value of these constant and
stable. The other part is typically
these leases have 2% annual increases
already um baked into the lease for the
next 10 to 25 years. Hence we know every
year it's increasing in value by at
least 2%. Um the other little market
fluctuations may be the cap rate where
um it could compress a little bit and if
it you know it's a strong market you can
get you know extra value there. Um, and
so it ch it's it's a different um it's
just a different environment as far as
stability and market goes compared to a
single family home or short-term rental.
>> Yeah, for sure. I I'm as I'm I'm trying
to presuppose what a listener, a watcher
would be thinking in this moment, right?
And it's sort of like I haven't heard
anything that is the Achilles heel. Like
where's the Achilles heel, Tom? What
what is the thing? because you're going
to answer the questions around how
people get paid and when they get their
money back. You'll already answer those.
So, we know that there are answers as
you've said to each of the holes in the
compass. So, as you consider the other
two elements of this equation, you know,
where where would you also be saying,
okay, I'll I'll tell you the Achilles
heel, too.
>> Yeah, the Achilles heel. So, not all
properties are created equal. So, even
though it is very passive and there's,
you know, long-term security, everything
else, you still have to be smart about
it. You have to b go on real estate
fundamentals, you don't want to be
paying for a property that is the
tenants paying above market rent. Um, or
you're paying above replacement costs on
the cost per square foot. Uh, and then
hight traffic areas like we're not
buying, you know, we look at smaller
tertiary markets. I focus on Iowa
because a lot of people don't even know
where it's at on the map. So, we we
eliminated a lot of competition by by
focusing on Iowa. But in these smaller
tertiary markets, we look at the highest
traffic area in a city. So, we're not
going in, you know, to an area where
it's like it's in the middle of nowhere.
It's surrounded by the core dense
population of people in that town. It's
the I call it the corner of Maine and
Maine, like the most popular
intersection, right? something does, you
know, if a tenant doesn't, you know,
make it work, somebody else is going to
want that spot because it's such a prime
spot. So, we got to think about that.
Some things out of our control are, you
know, franchises that, you know, are
underperforming or franchises that just
don't keep up with the changes in
consumer buyer, you know, patterns and
stuff like that. An example is right now
Burger King and Hardies. I would not buy
a Burger King or a Hardies property
because I don't think as a company
they're keeping up with some of the
other Smashburgers and, you know, kind
of more innovative menu stuff and
marketing and things is some of the
other brands out there. Another one that
comes to mind is KFC and Popeye's. I
just don't think if if we're going to
call it the chicken wars versus
Chick-fil-A and then you've got raising
canes and now hot chicken is coming on
strong like who who's going to win that?
Um a typical KFC or Popeye's is doing
about 1.5 million in revenue a year.
Chick-fil-A store I think the average
store is doing 7.5 million and that's
that's six days a week.
>> Right. Right.
>> Right. So you als you have to understand
like okay is this you know do you
believe in that franchise um in what
they're doing for the next 5 10 20 years
is that something that's going to be
around um one of my favorites is Olive
Garden. I I don't think I've ever seen
an Olive Garden closed down. It might be
like an anomaly, right? And so I'm like
all rightve I've I've gone to the same
Olive Garden since I was in high school,
you know, for homecoming and the Olive
Garden still there. I want to buy the
algor because it's gonna be there for
the next 40 years.
>> Yeah.
>> You know, so you think of those type of
spaces and then that's how you reduce
the risk. So you just because some you
you can buy something it's like I don't
know if Hardies is or uh Burger King's
going to be there or KFC for sure unless
it's like man even if KFC moves out. I
know 100% somebody else is going to take
there's another person just waiting for
that spot.
>> Sure.
>> Yeah. Yeah. So there is, you know, there
is you you've got to be mindful. You
can't just, oh, it's triple net lease.
Everything's foolproof. Um, you want to
look at their so we look at their
revenue numbers and we make sure that
their revenue can support the rent that
they're paying and, you know, we so we
try to get financials and stuff like
that to just back up. That's part of the
due diligence. So there's a whole list
of due diligence stuff that we look at.
Um, as a small business owner, I look at
Google reviews. We go to the places. If
it's a restaurant, we eat there. We see
how their management is, how their
employees are, and you know, just get a
good feel for like what's the traffic
coming in out of this parking lot. And
so those are some things that like you
don't see on a spreadsheet, but we
understand as as a business owner and a
consumer like, okay, are these guys
doing all the business fundamentals
right to run a good business to be able
to pay for rent ultimately? Right.
>> For sure. For sure. Well, and you know,
this is another one of those where curb
appeal really does matter. So, if the
parking lot is a mess, you know, like
that's a consideration. If it looks like
there's been a lot of deferred
maintenance by the existing owners, I
mean, these are all just sort of the the
common sense parts of the equation that
go into this evaluation. But I think
what you're trying to impress upon folks
is it doesn't have to be a a hairy scary
gorilla that you can't learn how to be
uh efficient and effective in with a
little bit of effort and and uh
dedication, right?
>> Yeah, for sure.
>> So, talk to the people like usually how
do how do you get your money back? How
do you get your money out? Like I know
we talked about refinance. Is that
usually the long-term play is you're
just trying to build the equity so you
can go take what you've created and turn
it into something new, right?
>> Yeah. I mean, really, you want to have
the, you know, some sort of exit plan or
some sort of plan in place for each
property and that might be, you know,
for some of these because, you know, we
see these properties where um families
will hold them for generation among
generation. A lot of the properties
we've bought this we're the first time
it's ever been sold.
>> Wow.
>> Uh it's been in a family for 20, 30, 40
years in some cases and we've had the
opportunity to purchase these and I'm
thinking no one's going to see this
property get sold again because we're
going to hand it down to our kids or
grandkids someday type of thing. So, we
call these the legacy properties that,
you know, they're just um they're just
sitting there and once once you get them
rolling, I mean, there's no reason to
sell it because like, all right, if they
got a lease locked in for the next, you
know, 15 or 20 years, I mean, that's a
long my kids are seven and nine. Like, I
think I'm like, man, they're they might
be married by the time
>> for sure. So, yeah, they they are
typically just this long thing. Um, and
then there's some other strategies
where, you know, you could do it. you
could own one of these properties for
three or four or five years and sell it
and do a 1031 exchange into the next
property, which means you're rolling the
tap capital gain without having to pay
capital gains tax. You're basically
rolling that basis into the next
property. And so some people do that.
Um, but with that, you kind of you you
keep stepping up the value. So, you take
a a million-doll property, it goes up to
$ 1.5 million, you build up a bunch of
equity into it, and then you sell that,
and now you're buying a two or a $3
million property. So, you can keep
building up that way. There's also
options where you could build up a
portfolio of these properties and sell
the entire portfolio at once to, you
know, a big private equity company.
>> Yeah. Well, and if we're really playing
Monopoly and we have our board out right
now and we're staring at it, what we'd
say is if you suddenly have three or
four or five or 10 institutional
investors really like to buy portfolios
of stable long-term highprofile tenants
that uh they have the same affinity for
that Tom and his group have developed
for all the same reasons. Yeah. This
means that once you as the buyer of said
product establish a track record of
performance, it makes it very easy for
you to develop a relationship with
institutional buyers to the point where
it's not constant cold calling on your
part in order to be able to figure out
what your exit strategy may be. There's
uh willing and able partners who would
love to take that phone call from anyone
who has built that kind of portfolio.
So, it's one of the like when you talk
about this asset class and you talk
about like endgame, this one's super
strong because the real money is waiting
for anyone who's successful in building
in this class. So, good on you for
giving it a go, buddy.
>> Yeah. So, you know, with that said, I
don't know if another asset class uh is
like this, but we we have buyers on a
weekly basis either calling or sending
us letters or emails saying, "Hey, I'm
interested in buying this property, XYZ
property, is it for sale?" Or a broker
calling and saying, "Hey, listen. I've
got a couple buyers. They like buying
Dollar Generals or they like buying
Biolife Medical or they like buying
Starbucks. Um, I see that you own this
one here and this one here. Is this for
sale or would you like us to put
together an offer? And so we're
entertaining offers all the time and
it's like, man, it's kind of fun to to
not even have to openly market it or
say, you know, like uh we were not
planning on selling this, but for the
right offer, we will happily sell it,
you know, right now. And so it's it's
such a big advantage of and that's how
you know you've got a great asset when
people are actively looking to buy it.
>> Oh my god. Well, and not even that, talk
about having a really good finger on the
pulse of what the going rate in the
market is when you're constantly getting
the opportunity to make to have offers
be made to you. Like you it even helps
you understand if you're going to go
make a purchase. Yeah,
>> wait for things is so nothing like being
in the mix and and that's valuable no
matter what asset class you're
participating in. But you know this one
for many of the people who might be like
wow that would be really interesting. I
mean, the way to get started is just go
start walking your neighborhoods, right?
Like,
>> yeah, for sure. Like, you know, I I say
the here's a way to get started because
people the first question is, well, how
do I find these property? Right. Um or
someone will usually come up to me and
say, you know what, there's this vacant
lot down here in the corner. How do I
find Starbucks or at or McDonald's or
someone to build on this lot? I'm like,
no, no, no, no. We're not building.
We're not That's risk. That's
speculation and that's a lot of work. um
because that's developing is saying,
okay, think of a place in your town that
is on one of the busiest streets,
someone that's been there for a while,
so they've got a nice track record.
They've had been there for at least five
or 10 years, maybe even longer. I think
about, like I said, the Olive Garden
where, you know, we went to we went to
dinner at for high school homecoming and
prime and I'm like, it's still there,
right? And so I'm like, this Olive
Garden is always going to be there. And
so you think about those like in this
pri so it's the prime intersections
hight traffic areas and the places that
the parking lot is always full
drive-thru lanes full the parking lot
whatever the case is. And so those you
know those are the triedand-rue places
that are already established. They've
got good management. They've got good
employees. They've got a dialedin
customer base that is used to going
there out of habit. And and so then once
you once you have that identified, what
I say is, "All right, now we create our
top 10 or top 20 list." Like what are
these top 10 or top 20 dream properties
in your town? Then you can do a look up
on there's a couple different websites.
So typically local assessors website you
can look up and find the property owner
information. Um a lot of times these are
owned in an LLC. So now we've got to get
into uh what I call like private
investigation mode. How do we figure out
who owns ABC LLC? Right? And so, every
state's a little different. Most states
you can type it in. Now, with AI, I'll
tell you what, it's you can basically
type it into Google and figure out who
owns it. So, we've got some
sophisticated software that helps with
this. Um, where we can gather their
address, their name, their cell phone
numbers, email addresses, everything
basically. Um, but it's as simple as
putting it into Google, figuring out,
okay, Joe Smith owns this. Then you then
you type in Joe Smith in the city, and
you figure out, all right, who's Joe? Is
he a local doctor? Is he know local
business owner? Um, what does he do, and
does he have other properties, or is
this his only one? And then the step
after that is once you understand like
who the owner is and maybe you get a
phone number or an email address. That's
where we when we Google it, we figure
out like, all right, Joe's a local
dentist or he's a local doctor or maybe
a real estate investor or something
else. They might they probably have like
a business website and then naturally we
can uncover a phone number to get a
hold. We can call up the business say,
"Hey, is Joe there Joe? I see you own
the Starbucks down the street. Um, I'm
interested in acquiring that property."
And so that gets you first in order. The
key here is you want to start building a
relationship with the current landlord,
right? So once you build that
relationship, he might say, you know
what, I have no intention of selling.
And a lot of people don't at the moment.
However, we build the relationship once
we reach out and we continue to reach
out and build this relationship with
that landlord because we know inevitably
over time something's going to happen.
There's going to be a pain point.
There's going to be a life event that
happens. So, someone's going to get
divorced. There's going to be a business
partner breakup. Someone's going to get
a life illness. Um, someone could pass
away and it could, you know, go into an
estate or get passed down to their kids.
Um, or just some other financial thing
may happen where it's like, you know
what, we've got to sell this property or
we're looking to sell it. And so, you're
just waiting for that time. you can't
predict or you don't know when it's
happening. But keep it in constant
contact and building that relationship.
You want your name at the top of the
stack and the number one person they're
ready to call when something does
happen. It helps them avoid paying for a
broker fee. Um it gives them an easy
exit because they already know, like I
said earlier, people are are always
calling me up and it it keeps me
intrigued and keeps me thinking, okay,
we got people on the list. I'm certain
of potential buyers for these
properties. And so you want to be the
top of the list on the the top
properties in your city that you're
looking at. And some might happen sooner
than others. Uh some might take, you
know, a month, some might take three
years. Uh, but if it truly is the top 10
or top 20 properties in your area, it's
worth the wait because these could be
legacy properties that are creating that
passive income and wealth for your
family for the next 10, 20, 30, 40 years
in multiple generations.
>> It's like finding your life partner.
>> Yes. No doubt.
>> Like, oh my god, I think I finally got
it. Here it is.
>> Yeah. So, when when we first started
doing this and and we brought investors
on and and I've been teaching this to
others on on how to do this specifically
with this asset class. The thing a lot
of people just don't know. And the thing
is like we all went to we all went to
school and went to college and we were
taught how to trade our time for money
and how to work for our money. And one
of the investors said, "You know what?
I've gone my whole life." And it wasn't
until after talking with you about this
asset class that I learned on how to
make how to have our money work for us
and the money make more money and not me
have to work for it all the time. And
that's the that's the key here to unlock
is how to get our money to make that
money and not be trading our time for
the money.
>> Yeah. All right. So, you won't know
this, but one of the threads that we
teach in Real Wise is the idea that
capital has temperament, right? So, some
of your money is patient and some of
your money is not. And your impatient
money should not be hanging out in these
asset classes, right? This should be
your patient money because in much the
same way as what you're saying, once
your patient money is in the places it's
doing its job, the only thing you can do
to mess it up is mess with it. Leave it
alone. Let it do its thing. Because what
that money is doing is it's creating the
money to do all of the other stuff.
That's the amplification fund that will
allow you the chance to go uh I don't
know maybe get one of these 20 buildings
that you've been working on for five
years and you've given yourself ample
runway and money to be able to do it
because you knew that this wasn't going
to be a decision that was going to just
going to happen tomorrow. Oh, I love
that, Tom. That's that's I knew you'd
nail it. I knew you would. But um we're
doing this thing. So, one, I'm going to
give you a chance to tell everybody how
they can find you. But beyond that, uh,
for the paid members of the Real Wise
Collective, we save an extra question
for them, which is the one that you saw
at the bottom of the list, which was if
somebody suddenly woke up with a half
mill and it's three years later and they
don't want to be regretful, what would
be your advice? How how can the people
find you? Yeah, find me at
fastfoodlandlordfoodlandlord.com
or follow me on Instagram at
fastfoodlandlord.
>> All right, I'm jazzed up. I gotta go.
That's it. That's all. That's
everything. I got to go call somebody. I
got to go do something now. I'm all
fired up. So, thanks, man. I appreciate
it. It was great. It was cool. Always
good, dude. Always freaking good.
Episode 4