Ryer Investments Isaac Gutman discusses seeking investment opportunities and risks of buying triple net lease investments

New York City

People familiar with the real estate market in the greater New York City area, including Brooklyn and the Bronx, are equally familiar with the name Isaac Gutman.

An influential, engaged member of the real estate community with more than a decade of experience in the New York real estate market, Gutman has worked hard to establish his place and build his personal investment portfolio. His personal investments include a wide range of properties, including residential, commercial, and industrial properties—but his efforts don’t stop there.

Influenced by famous names like Stanley Chera and Ted Lerner, Isaac Gutman got started in the real estate market by partnering with trusted members of the industry. As his experience grew, however, he decided to launch Ryer Real Estate Investment GRP, a Bronx-based firm that allows others to take advantage of Gutman’s extensive experience in the real estate market. Ryer Investments, which he also founded and launched, helps support others as they manage their investment portfolios. Gutman borrows from his extensive experience in real estate investing to aid clients as they move forward with their investment choices, including pursuing real estate investments throughout the greater New York area.

In more than a decade of experience, Isaac Gutman has worked in nearly every area of real estate investing, and he has the skills to go along with it. Over the course of his career, he has not only handled contract negotiations, acquisitions, and development, he’s worked to help maintain investment value and understand the considerable ups and downs of the market. Gutman weathered the real estate recession of 2008, and he brings the knowledge and skills acquired during that time to his investments and his clients today.

Gutman not only believes in hard work and dedication, he’s highly dedicated to giving back to the community. He has multiple charity involvements and commitments, starting with his service as a board member of the Alliance for a Better New York City Foundation and his creation of the Bronx Rising Star Foundation, both of which help support members of the New York Community.

Gutman is also active in his support of the Mount Sinai Medical Fund of New York, St. Bronx Food Pantries, and the Symmetry Econ Alliance. In addition to his wider community involvement, he supports the NYC Endowment of the Arts. In short, he believes strongly in benefitting the community as a whole and takes the steps necessary to achieve those goals in both his personal and professional lives.

Thanks to his commitment and dedication, Isaac Gutman has been able to establish himself as one of the most influential members of the New York real estate community. He continues to display the hard work and social excellence that initially brought him to that position, and seeks to uplift other members of the community, as well.

Isaac Gutman talks NNN investment properties and why investors taking a hands-off approach are the biggest beneficiary’s of triple net investment opportunities.

Investors are looking into more and more NNN lease properties. NNN properties are typically a set it and forget it investment: they’re hands-off and easy for investors to manage, since they don’t require a great deal of time and energy investment on the part of the investor.

In an NNN lease arrangement, the investor purchases a property, then leases it to a company, ideally a large company with an investment-quality rating. These companies will lease the property from the investor for a long period of time: a standard NNN lease can last for 25 years, in some conditions. Often, NNN businesses are recognizable names: companies and franchises that are likely to move into an area and stick for the long-term.

The company leasing the property is then responsible for all expenses associated with operation, while the investor can simply reap the benefits of a check coming in every month. Since the company is responsible for paying all operating expenses and taking care of any modifications or repairs to the property, the investor doesn’t have to worry about setting aside additional funds for maintenance; instead, the company gets to use the property as it sees fit, and the investor reaps the benefits.

Many investors tend to believe that there is little to no risk associated with NNN investments. While this idea makes sense at first glance, no one can tell where interest rates will grow and change in the next few years. Before investing in a Triple Net Lease Investment Property, investors should clearly understand the potential hazards associated with that investment, including asking the right question to determine whether this is an effective solution for their needs. One solution?

Choosing a mortgage length that is the same as the lease with an existing business. By using the same length in both lease and mortgage, the investor can ensure that the mortgage will be paid each month, substantially decreasing overall risk.

Next, investors should consider where they want to invest. Traditional real estate investors, who may plan to manage those investment properties themselves, may need to be close to the properties in order to take care of maintenance requests, problems with the property, and even showing the property to tenants. NNN investors, on the other hand, can invest wherever they like. They should do careful research into the options offered in other states as well as their own, which can expand their reach and allow them a better platform for investment.

Finding the right NNN property may not be as simple as entering the right terms into a search engine and hoping for the best. An effective NNN investor has a strong understanding of what makes a good property, including a property that is in excellent condition—preferably according to the terms needed by the renter—and that will attract quality, long-term renters who will take good care of the property and remain there for as long as possible.

In order to do this effectively, the investor needs to have a wide network of contacts available: the right relators, contractors, and even other investors who will let them know about available properties that fit their needs and help them purchase those properties. Without that extensive network of contacts, NNN investors may struggle to find the ideal properties for their needs—or, in some cases, end up with a property that poses a higher risk than originally anticipated.

Finally, the investor must factor in any costs associated with the property that aren’t covered by the tenant. While the terms of a tenant’s lease require them to take care of anything that has to do with the property directly, the company will not pay, for example, the investor’s legal fees or accounting costs.

While these costs usually remain low in comparison to the cost of the investment property, you should consider them carefully when factoring in the cost of your investment and its ultimate impact on your finances. You may want to include those terms as part of the “rent” for the building or decide how you want to handle paying your attorney, accountant, or financial advisor for any services related to the property.

No matter what type of investment you choose, it’s important that you feel comfortable with the investment you’re pursuing. You don’t want to rush into an investment, especially when it comes to a property investment, which can prove more difficult than anticipated to offload if you decide that the risk is unacceptable or that the investment isn’t working for you.

Once you, as an investor, have done your due diligence, you can decide on your comfort level and risk factors. If you decide that NNN investing is right for you, you can then move forward with your investment.