Net Lease Case Study: Kevin OLeary’s O’Shares ETF versus Net Lease Strategy

7/14/2015

Exchange Traded Fund Definition

An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.

Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated once at the end of every day like a mutual fund does.

Read more: http://www.investopedia.com/terms/e/etf.asp

Kevin O'Leary' OShares

After she died I became the executor of her estate and for the first time saw the results of 50 years of investing in only dividend paying stocks. Her returns were stunning. She was not a financial advisor but she believed in the principle that you should get paid while you wait. To her a stock that did not pay a dividend was simply a speculation not an investment because you could only make money if the stock went up. Dividends assured her of income and she would only spend that.

Seeing the results of her philosophy changed my mind about investing forever. I did some research. Did you know that over the last 40 years over 70% of the markets return came from dividends, not capital appreciation? That settled it for me, today I never invest in stocks that don't pay dividends.

Full article at https://www.linkedin.com/pulse/my-love-dividend-paying-stocks-made-me-create-own-etf-kevin-o-leary

Our Net Lease Strategy has 4 similar characteristics and 4 distinct and unique advantages over dividend paying stocks

Our comments on 7/14/15 14:15 PST

Mr. O’Leary,

Thank you for sharing of your story regarding your mother’s investment philosophy.

Investor only requires to master few investment principles/strategies so that he can invest money on his own without a financial advisor. Of course, he needs to a) search and select right dividend paying stocks; 2) strategize for a long term objective is 40 to 50 years.

Similarity with your mother’s investment philosophy, our Net Lease Strategy has 4 similar characteristics and 4 distinct and unique advantages over dividend paying stocks.

Investor in Net Lease property (“Net Lease” or ”NNN”) also requires to master top six (6) net lease terms.
Investor also requires to research, analyze, due diligence and review his acquisition. Since lease agreement is guarantee by tenant, therefore, tenant’s net worth must be at $US 100+ million in last 12 months. For example, it describes in details in Case Study Family Dollar.
Investor in Net Lease also receives his monthly fixed income, called capitalization rate or short for CAP rate or just CAP. In fact, if net lease properties cannot pay CAP (positive cash flow at closing), it just a speculation.
Investor in Net Lease property understands and seeks for long term investment objective. It is a minimum of 5 years for Net Lease.
Investor’s monthly income is a passive income, which taxed at lower tax rate than the earn income.
Investor in NNN can leverage using mortgages or OPM if he wants to. This is a great option.
Investor in Net Lease can purchase insurance against his underlined net lease property. This is a requirement for protect his funds. In contrast, you cannot buy insurance against dividend paying stocks.
Investor in NNN has full control of his investment. He can re-fi with cash out, cross collateral, sell and lease back or SLB, sell with seller finance or wrap-mortgage.

Additional of net lease can be found at http://www.dajkgroup.com/net-lease-investment.html. It is including case studies and our monthly selections.

Your Shark Tank’s episodes are always enjoyable, entertaining and packed of valuable investment strategy and creative structured finance.

Thank you for your time, Kind regards

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