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Quality Real Estate

for Quality of Life

8494 South 700 East #200


Sandy, UT 84070
Office: 877-568-1031
www.DebtFreeProperties.com
At Rockwell Debt-Free Properties, our mission is to simplify and improve
the quality of our clients’ lives by providing fundamentally sound real
estate investments that preserve wealth and create reliable income.

We know that it’s becoming more and Our purpose is to provide you with a real estate
more difficult to find an investment that investment that meets three basic needs:
you can feel good about. 1 Your money is safe and secure,
So many Americans have lost so much as a 2 You can depend on the monthly cash flow
result of this struggling economy. If you are like your ownership provides,
most people you just want to put your money 3 You don’t have to deal with any of the
somewhere that it will be safe and where you headaches of being a landlord or the hassles
can get a good return on your investment. of day-to-day property management.
Unfortunately, that can be very hard to find.
In addition, the value of your real estate asset
Rockwell is here to help. Our approach to has the potential to grow and appreciate over
investing could be best described as a return to time. All of our properties meet a very rigid set
basics. Our formula is simple and it works, as of criteria to ensure that they accomplish those
evidenced by our flawless track record. three primary purposes:
1 Security
2 Reliable income
3 Passivity

Rockwell Property Characteristics:


1 Tenants-in-common (TIC)
ownership structure
2 New construction in great locations
3 Excellent corporate tenants
4 Long-term, triple-net (NNN),
corporate-guaranteed leases
5 Debt-Free
Tenants-in-Common (TIC) Ownership

The tenants-in-common structure


allows you to purchase an undivided,
fractional interest in a property. This
gives you access to a much higher
quality real estate investment than
you might have on your own.

For instance, with $200,000 you could buy 10%


of a $2,000,000 property. You would receive
a warranty deed, a title insurance policy and
enjoy all of the same benefits as if you owned
the entire property; you just own a slice of
the pie rather than the whole thing. You also
receive 10% of the income, appreciation and
tax shelters that the property provides. A
co-ownership in a Rockwell property can be
purchased for as little as $50,000.

10%
New construction in great locations

All Rockwell properties are brand new


commercial buildings with new leases
and construction warranties in place.

We perform extensive demographic research


and market analysis on each area where these
properties are located to make sure that the
business that is leasing the property is likely to
succeed in that location and that the real estate
has the potential to appreciate in value over
time. One of our principals also personally visits
each site to inspect the property and evaluate
the surrounding community.
Excellent corporate tenants

One of the most important aspects of


owning a Rockwell property is that we
only deal with very strong national or
international companies as tenants.

As such, we don’t work with any franchises or


small businesses. We conduct a thorough analysis
of each company’s business model, credit
worthiness, industry position, profitability and
staying power.

For instance, two companies that we love as


tenants are Fresenius Medical Care and Family
Dollar. Fresenius is a classical industry leader
as they are the world’s top provider of kidney
dialysis products and service. They operate over
2,500 dialysis clinics here in the U.S.A. They
have a wonderful business model as dialysis
is a vital, life sustaining service that is largely
unaffected by economic downturns. Family
Dollar is another example of a business that
does extremely well even in a down economy as
people tend to shop there even more regularly
during tough times. They are a very profitable,
well run company that operates over 6,500 retail
stores all over the country.
Long-term, Triple-net (NNN) Lease with Corporate Guarantee

The triple net-lease shifts the majority


of the property management duties and
expenses from the owners to the tenant.

The tenant is responsible for paying the


property taxes and insurance and doing most
of the maintenance and repairs of the building.
This creates a hassle-free, passive arrangement
for the owners. We also help the owners
contract with an independent, professional
manager to oversee the property and collect the
monthly lease payment from the tenant, which
is then distributed to the co-owners. Since
most of the responsibilities are the tenant’s,
the property management services are very
inexpensive; typically each co-owner only pays
about $25 per month.

With every Rockwell property, the lease is also


guaranteed by the corporate parent. This means
that the commitment to lease your property is
backed by the financial strength and resources
of the entire company, so even if a particular
location performs below expectations for a time,
you aren’t at risk of missing a monthly lease
payment. Another benefit is that all of the lease
commitments are long-term with incremental
increases in the lease rate over time. A typical
lease will have an initial period of ten to fifteen
years, with multiple renewal options that can
take it out many years beyond that. This affords
you tremendous peace of mind knowing that
you have a wonderful tenant who is committed
to leasing the property well into the future.
Debt-Free

While most TIC properties are offered


with financing already in place,
all Rockwell properties are offered
completely debt-free.

This creates tremendous security and stability


for the owners. A property that’s owned free and
clear is never at risk of being lost through default
and foreclosure. Because there is no debt to
service, all of the income the property generates
goes directly to the owners.

A debt-free property that has a corporate-


guaranteed lease with a strong, credit tenant is
among the safest and most reliable real estate
investments you can find. In many ways it’s
similar to owning a corporate bond; however you
also receive the added benefit of regular cash
flow and all of the other advantages of owning
real estate.
Synopsis

Who? So who is the ideal candidate


for a Rockwell debt-free Why? When all is said and done you
can sit back and enjoy the
property? The answer is simple; anyone reliable payment you receive the first week of
who wants a secure, reliable, cash-flowing each month, knowing that your investment is
investment. Many of our clients have sold secure and that you don’t have to worry about it.
another investment property and are involved We like to say that owning a debt-free Rockwell
in a 1031 tax-deferred exchange. Some invest TIC property is simple, steady and secure. Our
funds from their IRA or other retirement track record is literally perfect as not a single
accounts, while others simply invest cash as Rockwell client has ever missed a monthly lease
they can make a much more competitive return payment. Moreover, all of the companies that
than they can in CDs, money market accounts are the tenants in these properties are thriving
or other conservative vehicles. despite the down economy.

How? Because there is no financing


involved, purchasing a
If the property does not perform as
promised during your first six months of
Rockwell TIC property is extremely simple. You ownership, we will buy it back!
just select a property from our current offerings
and the dollar amount you want to purchase.

There are only three documents to sign,


1 a standard purchase contract,
2 a TIC agreement outlining the relationship
among the co-owners and how decisions
are made, and
3 a property management agreement.

Rockwell pays for all of your closing costs,


records a warranty deed to transfer ownership
to you and sends you a prorated rent check
based on the very day you sign. From that point
forward you simply receive a monthly payment
directly from the property manager in the form
of a mailed check or a direct deposit into your
bank account.
Synopsis

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MONEY MARKET STOCKS & BONDS


Benefits of owning a Rockwell property:

• Triple net (NNN) leases alleviate the headaches of


property management
• Tenants are financially strong, well established,
national companies
• Lease payments to co-owners are guaranteed by the
tenant corporation
A Rockwell property is • Rockwell Debt-Free Properties pays all closing costs
an excellent option and fees for our clients
• Low minimum investment amount ($50,000)
if you ... gives Rockwell clients access to much higher
quality properties

• Have no debt, • Properties are located in fundamentally sound


real estate markets
or want no debt
• Buildings are new construction with new
long-term leases
• Want a reliable source of
• Properties are offered completely DEBT-FREE
monthly income

• Prefer not to actively Benefits of owning a DEBT-FREE property:


manage property
• Security of investment — the property cannot be lost
through default and foreclosure
• Value an investment that • Simplicity of purchase — you do not have to qualify for
provides tremendous security or obtain a loan
and stability • No debt payments — lease income goes directly
to owners
• Greater liquidity or ability to resell — because there
is no debt, a new buyer does not have to qualify for
an existing loan
• Steadiness of cash flow — owners never have to
worry about volatile lending conditions or refinancing
loans as there is no debt to service

Our promise to our clients …


THE ROCKWELL GUARANTEE

If the property does not perform as promised during


your first six months of ownership, we will buy it back!
Call us today at: 801-568-1031
or toll free at: 1-877-568-1031
or email us at Info@debtfreeproperties.com
FAQ

Who manages the property? What are the costs of buying and owning
Rockwell helps the co-owners to get an a Rockwell property?
experienced, professional property manager Rockwell pays all of the closing costs so that you
into place. The property manager ensures that do not have to pay any fees to buy a property.
the tenant complies with the terms of the lease, The only ongoing cost the co-owners incur is the
coordinates communication, distributes the property manager’s fee, which is typically only
monthly lease payments to the co-owners and $25 per month. The tenant pays for the property
prepares regular reports and tax statements. taxes, insurance and the majority of the repairs
and maintenance.
How are decisions made?
Upon closing, a tenancy-in-common agreement When do I get paid?
is executed that outlines the relationship The property manager sends a payment to each
among the co-owners and how decisions are co-owner during the first week of each month in
to be made. In short, minor decisions are the form of a mailed check or direct deposit into
made by a majority vote while major decisions your bank account.
are made by a unanimous vote. For practical
purposes however, because the tenant and How many co-owners are there in an
lease are already established before the co- average property?
owners purchase an interest, there are very few Rockwell properties are designed to be smaller
decisions to be made. in scale than those offered by other TIC
sponsors. While many TIC properties have thirty
How do I get out? or more co-owners, most Rockwell properties
Each co-owner receives an undivided, fractional have fewer than ten.
interest in the property so each has the right
to sell his portion at any point in time. The
tenancy-in-common agreement gives the other
co-owners the first right to buy if one of the
co-owners decides to sell. The resale of a TIC
interest in a debt-free property is made easier
because a new buyer does not have to qualify for
an existing loan. All of the co-owners can also
agree to sell the entire property whenever they
choose. A TIC ownership can be listed with a
real estate broker or sold by owner. Rockwell can
also serve as a resource for a past client seeking
to sell his fractional interest.
What is the worst case scenario?
The worst case scenario would be if the
tenant went out of business and there were an
interruption in the lease payments. However,
because there is no debt to service you would
not be in danger of losing the property and
thereby your original investment. In this
circumstance the co-owners could elect to have
the property manager find a buyer or a new
tenant to lease the property. By design, Rockwell
properties are smaller, freestanding buildings
which are typically much easier to lease than
a larger facility. It is important to point out
that Rockwell only works with strong corporate
tenants with excellent track records and proven
business models. To date, no Rockwell property
owner has ever missed a monthly payment.

Can I buy a Rockwell property with


funds from my 1031 exchange?
Yes. Many of our clients sell other investment
properties and save tens or hundreds of
thousands of dollars in capital gains tax
payments by reinvesting the proceeds from their
sale in a Rockwell TIC property. These clients
are always thrilled to transition into a passive,
cash flowing investment. Rockwell properties
are specifically structured to qualify for 1031
exchange treatment. A copy of our legal opinion
relating to 1031 exchange matters is available
upon request.

Can I buy a Rockwell property with my


IRA or other retirement account?
Yes. Many Americans are taking a more active
role in their retirement planning. Self-directed
IRAs and other similar programs allow you to
decide where to invest your money. A Rockwell
property is a tremendous option for your
retirement account as it is designed to provide
security and a very predictable, reliable return
on your investment.
CUSTOMER NEEDS ANALYSIS

Our primary goal is to ensure the total satisfaction of all of our customers.
Rockwell Debt-Free Properties are structured to provide our clients with a very
specific set of benefits and, while it is an excellent option for most, it may not be
the right solution for everyone. Please consider the following questions to help
us understand your personal objectives. We are committed to helping find the
investment that is best for you. If a Rockwell Debt-Free Property is not the best
solution for your situation, we will gladly refer you to someone that may have an
option better suited to meet your individual needs.

1 How would you describe your  High


level of risk tolerance?
 Moderate
 Low

2 Is regular monthly cash flow  Yes


important to you?
 No

3 As an investment property owner  I would like to be actively


which of the following would involved in the management and
best describe your personal maintenance of my property.
preference?
 I would like to have very little
involvement in the management
and maintenance of my property.

4 Which of the following best  I am willing to assume greater


describes your investment risk in an attempt to make an
objectives? above average return.
 I prefer greater security in order
to protect my investment and
achieve a reliable return and
steady growth.

5 Have you been completely  Yes


satisfied with other investments
 No
you have had?
Why or why not?
Fresenius Medical Care
HOUS TON, TX

DESCRIPTION
Fresenius Medical Care is the world’s largest, integrated
DEBT-FREE
provider of products and services for individuals with
chronic kidney failure, a condition that affects about
1.5 million individuals worldwide. Through its network
of more than 2,500 dialysis clinics in North American,
Europe, Latin America and Asia-Pacific, Fresenius
Medical Care provides dialysis treatment to nearly
200,000 patients around the globe.

HOUSTON, TX
The city of Houston is the fourth largest city in the
United States, with over two million residents. The P R O P E RT Y I N F O R M AT I O N
10-county MSA has a population exceeding 5.2 million,
ranking seventh nationally. Of the 10 most populous T E NA NT Fresenius Medical Care
metro areas in the U.S., Houston ranks second in LO C AT I O N 5435 Aldine Road
employment growth rate and fourth in nominal
Houston, TX 77039
employment growth. In 2006, Forbes magazine ranked
Houston No. 1 in Texas and No. 3 nationally within the P R O P E RT Y T YP E Single-tenant, stand alone, medical
Category of “Best Places for Business and Careers.”
D AT E B U I LT 2009

TOTA L S Q U A R E F E E T 9,682 sq. ft.

P U R C H A SE P R I C E $3,041,450

L E A S E I N F O R M AT I O N
L E A SE GU A R A NTO R Fresenius Medical Care

L E A SE T YP E NNN-lease

LE A SE TERM 12 year initial term


• 12% increase in year seven
• (3) Five-year renewal options
ABOUT TENANTS-IN-COMMON
10% increase w/each option
Tenants-in-Common or TIC ownership allows multiple AV E R AGE RE T U RN First 12 years: 7.00%
buyers to purchase an undivided percentage of a single
piece of property. Each buyer receives his own deed to TOTA L A NNU A L R E NT C AP R ATE
the property and benefits from all of the income, tax YE A R S 1 - 6 $200,736 6.60%
shelters and appreciation it provides. All Debt-Free YE A R S 7 - 1 2 $224,824 7.40%
investment properties have the following characteristics:
OPTION 1 $247,306 8.13%
• $50,000 minimum purchase amount
OPTION 2 $272,037 8.94%
• Property is offered debt-free
OPTION 3 $299,240 9.84%
• Strong national companies as tenants
• Long-term, corporate-guaranteed lease
• No closing costs
• Satisfies IRS requirements for 1031 exchanges Toll Free: 1-877-568-1031 | Phone 801-568-1031
Info@DebtFreeProperties.com | www.DebtFreeProperties.com
Family Dollar
S AN ANTONIO, TX

DESCRIPTION
Family Dollar is one of the fastest growing discount
store chains in the United States. Currently, the
company operates over 6,600 stores in 44 states. In
DEBT-FREE
2009, Family Dollar surpassed their 2008 annual
revenue of $6.9 Billion with annual revenue of $7.4
Billion and reported net income of $291 million.

SAN ANTONIO, TX
San Antonio is the second-largest city in the state of Texas
and the seventh-largest city in the United States with a
population of 1.3 million. It was the fourth-fastest
growing large city in the nation from 2000 to 2006 and P R O P E RT Y I N F O R M AT I O N
the fifth-fastest-growing from 2007 to 2008.
T E NA NT Family Dollar
San Antonio is home to five Fortune 500 companies. The
LO C AT I O N 10817 Marbach Road
city is also home to one of the largest military
San Antonio, TX 78245
concentrations in the United States. The defense industry
in San Antonio employs over 89,000 and provides a P R O P E RT Y T YP E Single-tenant, stand alone, retail
$5.25 billion impact to the city's economy.
D AT E B U I LT November 2009

TOTA L S Q U A R E F E E T 9,180 sq. ft.

P U R C H A SE P R I C E $1,400,000

L E A S E I N F O R M AT I O N
L E A SE GU A R A NTO R Family Dollar

L E A SE T YP E NNN-lease

LE A SE TERM Ten-year base term


• 5% increase in year six
• (5) Five-year renewal options
ABOUT TENANTS-IN-COMMON 10% increase w/each option
Tenants-in-Common or TIC ownership allows multiple
buyers to purchase an undivided percentage of a single TOTA L A NNU A L R E NT C AP R ATE
piece of property. Each buyer receives his own deed to YE A R S 1 – 5 $ 98,000 7.00%
the property and benefits from all of the income, tax
YE A R S 6 – 1 0 $102,900 7.35%
shelters and appreciation it provides. All Rockwell
OPTION 1 $113,190 8.08%
Debt-Free properties have the following characteristics:
• $50,000 minimum purchase amount OPTION 2 $124,509 8.89%
• Property is offered debt-free OPTION 3 $136,959 9.78%
• Strong national companies as tenants OPTION 4 $150,654 10.76%
• Long-term, corporate-guaranteed lease OPTION 5 $165,719 11.83%
• No closing costs
• Satisfies IRS requirements for 1031 exchanges Toll Free: 1-877-568-1031 | Phone 801-568-1031
Info@DebtFreeProperties.com | www.DebtFreeProperties.com