The Triple Net Lease in Commercial Real Estate

The Triple Net Lease in Commercial Real EstateThe Triple Net Lease in Commercial Real EstateA triple net lease is a commercial leasein which the tenant is pretty much responsible for paying everything. They pay all or part of the taxes, insurance, and maintenance associated with the use of the property. These fees are paid in plus-rechnen to the tenants regular or base monthly rent. This type of arrangement is also known as a net-net-net or NNN lease. Why does the name represent? The tenant is typically responsible for paying the net amount of three major expenses in addition to their base rent insurance, taxes, and maintenance. But this isnt to say that additional rent is limited to these things. The tenant effectively assumes all financial responsibility for operating expenses, both those that stem from their business and those that maintain the building. Disadvantages of Triple Net Leases When you enter into a triple net lease, youre effectively paying the costs of owning a pr operty that you dont in fact own. Youll pay real estate taxes on someone elses real estate. Youll pay to insure their property against fire or other damage, and youll pay to keep it up to code and safe for you, your clients, and customers. Meanwhile, the owner is the only one who benefits from the buildings appreciation or increase in value. This can be an excellent situation for an investor who wants to buy commercial property and rent it out. Its largely hands-off ownership that could result in substantial passive growth if they hold onto it long enough. Advantages of Triple Net Leases Your base rent will fruchtwein likely be less than it would be if you entered into something other than a triple rent lease, but in the end, the bottom line might be pretty much the same. You might enter into another type of lease for a base rent of $4,000 a month. The management company or landlord may agree to drop that to $2,000 a month under the terms of a triple net lease, but if the three add-ons total roughly $2,000 a month, you havent really gained anything. The Bottom Line Triple net leases almost always favor the landlord, and you should carefully negotiate them to limit how much the landlord can increase NNN fees each year. Youll also want to make sure these fees and terms for an ?increase are clearly spelled out in your lease. If you make a mistake, you may be stuck with it for some considerable time, because triple net leases are typically for 10- to 15-year terms. Beware of terms like turnkey in lease negotiations. This often means that the lease is triple net. Have your attorney examine your lease, because the true identity of triple net leases are often disguised by crafty landlords with hidden language. When it comes to triple net leases, look before you leap. The financial consequences are too high.

Screening Candidates for Performance Saboteurs

sichtung Candidates for Performance Saboteursbegehung Candidates for Performance SaboteursScreening Candidates for Performance Saboteurs Chamine, author of Positive Intelligence (Greenleaf Book Group Press, 2012)You may have experienced it job candidates who are poised throughout the bewerbungsgesprch process, check out well on resume and references, who then dash your hopes shortly after theyre hired.One way to avoid this type of hiring mistakeis to screen for what I refer to as Positive Intelligence.Analyzing Positive IntelligencePositive Intelligence is a measure of ones degree of self-sabotage. In my lectures on Positive Intelligence at Stanford, I reveal 10 mental Saboteurs that undermine or derail us.These sneaky characters have names like Controller, Judge, Avoider, and Stickler. 95% of the executives in the Stanford program report that one or more of these Saboteurs cause significant harm to employee performance and their personal fulfillment.Every candidate you interview, an d for that matter everyone you know, is being undermined by some Saboteurs. The question is how strong they are.Since Saboteurs become more visible under stress, you might not easily see them in the controlled interview environment. They will show their true faces under the real stress of the real job.Saboteurs are the internal enemies. They are a set of automatic and habitual mind patterns, each with its own voice, beliefs, and assumptions that work against our best interest.To illustrate, when our mind tells us that we should prepare for tomorrows important meeting, it is acting as our friend, causing positive action.When it wakes us up at 300 a.m. anxious about the meeting and warning us for the hundredth time about the many consequences of failing, it is acting as our enemy it is simply exhausting our mental and physical resources without any redeeming value. No friend would do that.Saboteurs start off as our guardians to help us survive the real and imagined threats to our phys ical and emotional survival as children.For example, the Judge Saboteur represents a bias for noticing and exaggerating the negative. This bias is a critical evolutionary design for our ancestors to have survived the dangers of the jungle. When the tree leaves started shaking, the early human who assumed the worst and ran from an imagined tiger welches the one that survived and passed his genes.By the time we are adults, these Saboteurs are no longer needed, but they have become invisible inhabitants of our mind. They form the lens through which we see and react to the world, without knowing we are wearing any lens.Spotting Saboteurs in the Recruiting ProcessOf course most of your job candidates are unaware they actually have Saboteurs, so simply asking them about it would not be productive. There are a few ways for you to remedy that.You can have them take the online Saboteur assessment and discuss their results with you. Or they can take the PQ Score assessment.PQ stands for Posit ive Intelligence Quotient and shows the percentage of time someones mind is serving them as opposed to sabotaging them.Ideally you want a candidate who scores above 75, which is the tipping point PQ score for optimal performance. Both these assessments require honest responses to be accurate, but you can still detect a lot from the way candidates present and discuss their results (find both free assessments at PositiveIntelligence.com.Screening Candidates for SaboteursAnother way for you to screen would be to probe during the interview for specific Saboteurs that appear, likely based on someones strengths. Saboteurs often represent the dark side of what someone considers to be their strength.For example, someone priding themselves on attention to detail might suffer the Stickler Saboteur. Many leaders with a forceful and confident style suffer the Controller Saboteur. Someone who is good at relationship harmony might suffer the Pleaser or Avoider Saboteurs.The following table offers a summary.SaboteurNameSubvertedStrengthDescriptionLieJudgeDiscernment, responsibility and accountabilityFocus on negative in self, others, or circumstancesUnless I constantly point to whats wrong, nothing will improveControllerConfidence and initiativeNeed to always control and dominateControlling always ensures best outcomeSticklerDetail orientation and organizationNeed for order and perfection taken too farPerfectionism is always the preferred wayAvoiderAppreciation and positivityAvoid difficult or unpleasant tasks and conflicts. ProcrastinateI am just being positive. No good comes out of dealing with conflictRestlessFlexibility and risk toleranceConstant need for busyness.Rarely at peace with current activityThis is the way to accomplish and experience the mostPleaserCaring and compassionConstantly helping, pleasing, or rescuing others, hoping to be likedI do this to help and expect nothing in returnVictimEmotional self-awareness Continuous focus on painful and deflating emotion sThis is my best way to attract attention and affectionHyper-RationalObjectivity and logicOver-application of the rational function in dealing with peopleEmotions are useless distractions. Greatest leader strength is logicHyper-VigilantReliability and dependabilityContinuous intense anxiety about dangers and what could go wrongBest way to protect self and others is through hyper-vigilanceHyper-AchieverGoal and achievement orientationNarrow focus on achievement to the detriment of relationships, balance and perspectiveGreatest success comes from achievement-at-all-costResumes and employee references only point to potential. Screen candidates for Positive Intelligence if you want pepole who are likely to actually reach their true potential.And remember, strong Saboteurs dont have to be career derailers, so long as Positive Intelligence tools are used to conquer them.Author BioShirzad Chamine is author of the New York Times bestseller, Positive Intelligence Why Only 20% of Teams and In dividuals Achieve Their True Potential AND HOW YOU CAN ACHIEVE YOURS(Greenleaf Book Group Press, 2012). He is Chairman of CTI, the largest coach-training organization in the world. A preeminent C-suite advisor, Shirzad has coached hundreds of CEOs and their executive teams. His background includes PhD studies in neuroscience in addition to a BA in psychology, an MS in electrical engineering, and an MBA from Stanford, where he lectures. Find free assessments, tools, and blogs on PositiveIntelligence.com.

How to Start a Riding Stable

How to Start a Riding StableHow to Start a Riding StableWith over 9 million horses being used in the U.S. for sport or recreation each year, there is strong demand for training facilities where riders can receive proper instruction and board their horses. A riding stable business can be a fairly profitable venture if it is properly planned and managed. Hire Experienced Staff Individuals starting a riding stable should either have extensive experience training horses and riders themselves or hire riding instructors with this experience. Even if the facility owner does not have experience in all aspects of forming a riding stable, it is important that they find and hire appropriate personnel to assist with the venture (including an experienced barn manager and support staff). Obtain Facility Equipment The easiest way to start up a riding stable is to purchase or lease an existing facility, but some individuals choose to purchase a tract of land and build to suit. A riding stab le must provide its clients with arenas where they can practice. The best (and most costly) arenas are the covered indoor sort, with lighting that allows riders to train at all hours. A more common and affordable option is the outdoor arena, which is not covered. A key element of either type of arena is that they use a safe, consistent footing that it routinely dragged to ensure it is kept level. Footings may range from sand or dirt based options to the most expensive synthetic creations. Additional features such as jump courses, round pens, and trails are often added. The facility must also have a barn with stalls, a feed room, a tack room, an office, fenced paddocks and fields, water troughs, proper storage areas for hay and bedding, and a full array of maintenance equipment. If the stable will provide horses for use in lessons, a reliable group of horses must be acquired, along with necessary equipment such as brushes, blankets, and riding tack. It can be a significant expense. Riding stables must comply with all local laws, including zoning regulations and business licensing requirements. They should also secure insurance and post the voreingestellt limitation of liability notices around the premises. Define Lesson Boarding Options Riding stables may offer lessons using facility owned horses or those owned by clients. Both group and private lessons are usually offered, in either hourly or half-hourly formats. The facility may also offer transportation for the horses to shows and other competitive events. Boarding options for client horses are usually also offered. Connect With Service Providers Every riding stable needs access to quality farrier services and veterinary care, so it is important to secure these relationships immediately. Suppliers of bedding, hay, and feed must also be identified. Ensure Competitive Pricing It is important, especially at the outset of your venture, that services are priced competitively for your area. It will g ive new clients a financial motivation to try your services. Research your competition by calling around to other facilities or visiting their websites to learn what they charge for similar options. It might also be a good idea to offer incentives to get the business up and running, such as new client discounts or referral credits. Well known, established riding instructors will be able to command higher prices for lessons and clinics. They may also bring clients from their previous facility to yours, which is an added bonus. Advertise Be sure to advertise your riding stable at local equine facilities like feed stores, tack shops, and showgrounds. Local newspapers and equine magazines may also be good ways to reach your target audience. Advertising in horse show programs or publications from other major equine events can also be an excellent business decision. If your facilitys riders perform well in competitions, this might draw additional clients who are interested in trying y our trainers methods to achieve similar success. Many riding stables create a website with photos, pricing options, and full details on their training program and competitive successes. The more information that can be placed online, the better. Over time, the best advertising will come by way of referrals from satisfied clients. One well-connected customer can provide many referrals to their friends and fellow riders. It is the kind of advertising that money cant buy.