Dave Lucas: The Investor’s Guide to Triple Net Real Estate

Dave Lucas joins Bruce Bean for a practical guide to triple net real estate and 1031 exchange planning. In this episode, Dave explains what investors need to know before moving from a management-heavy property like apartments into a more passive triple net investment. He also shares the biggest mistakes buyers make when they wait too long, move too fast, or fail to review the lease carefully.

Bruce and Dave walk through the basics of triple net investing, including why these properties appeal to investors focused on capital preservation, cash flow, and simpler long-term ownership. Dave explains that while triple net properties can be a strong fit for later-stage investors and families planning for the next generation, not every deal is a good deal.

The conversation focuses heavily on 1031 exchanges and the pressure created by the 45-day identification period. Dave shares why investors should begin searching early, build their team in advance, and avoid treating the deadline like a window to find the perfect deal. Instead, he recommends defining risk tolerance early and targeting a solid market deal before time runs out.

Dave also breaks down his four-part quick test for reviewing triple net opportunities. He looks at whether the rent is replaceable, how the location performs at the unit level, the credit quality of the tenant, and the economic strength of the surrounding market. He explains why investors should never rely on the tenant name alone and why the lease is the main document that drives value.

 

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