Passive Income Unlocked: 359. Unlocking The Benefits Of Triple Net And Double Net Leases with Kenny Wolfe

359. Unlocking The Benefits Of Triple Net And Double Net Leases with Kenny Wolfe

Jan 16, 2023

Kenny Wolfe is an experienced multifamily syndicator, the founder, and CEO of Wolfe Investments, and the published author of “Investing in the Dream: How to Acquire Multifamily Real Estate and Attain Total Financial Freedom”. He invested in his first multifamily property in 2010 and instantly saw the potential for real estate to transform his life – giving him the opportunity to quit his day job and start a company. Kenny is passionate about helping others attain financial freedom through real estate investing. He believes in the power of passive income (making money while you sleep) and encourages others to think beyond traditional investments to grow their wealth. Kenny has grown Wolfe Investments to over $570 million AUM worth of commercial real estate transactions nationwide and is a principal in 6,500 units (8,500 units all-time). He holds a BBA from Baylor University and an MBA from the University of Texas at Arlington. Kenny currently resides in Plano, Texas with his wife, daughter, and son. When he’s not scouring the market for new deals, he enjoys discovering new vegan restaurants and rooting for the Broncos.

In this episode, Kenny shares his journey from doing a few deals to now having 17 people in his asset management company. He explains the difficulties involved in such projects and how he makes them work financially, taking into account the cost of HVAC systems and other amenities that may already be present in the building. He discusses different types of real estate investments and their pros and cons. To learn more about Kenny, listeners can visit his website at Wolfe Investments!

[00:01 - 01:29] Opening Segment

Kenny is introduced to the show!
He is the founder of Wolfe Investments

[01:30 - 17:39] Unlocking The Benefits Of Triple Net And Double Net Leases

The biggest hurdle in these conversions is plumbing and making the most of the floorplate
When buying properties, the discount depends on the asset
Triple net leases require talent to take care of 100% of operational expenses and property upkeep
Multi-family investments offer a balance of cash flow and appreciation
Development deals aim to double investment in two to three years
Tax ramifications should be taken into account when investing
He discusses the four main risks to development deals:
- Materials
- Labor
- Interest rate risk
- Lease up