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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001362310-08-004739.txt : 20080818
<SEC-HEADER>0001362310-08-004739.hdr.sgml : 20080818
<ACCEPTANCE-DATETIME>20080818134206
ACCESSION NUMBER:		0001362310-08-004739
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080812
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080818
DATE AS OF CHANGE:		20080818

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NETREIT
		CENTRAL INDEX KEY:			0001080657
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34049
		FILM NUMBER:		081024605

	BUSINESS ADDRESS:	
		STREET 1:		365 SOUTH RANCHO SANTA RD
		STREET 2:		SUITE 300
		CITY:			SAN MARCO
		STATE:			CA
		ZIP:			92078
		BUSINESS PHONE:		760-471-8536
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c74793e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">
<DIV style="font-size: 10pt">
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style="font-size: 1pt; width: 100%; border-bottom: black 2pt solid">&nbsp;</DIV>
<DIV
style="font-size: 1pt; width: 100%; border-bottom: black 1pt solid">&nbsp;</DIV>

<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 OR 15(d) of The Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): August 12, 2008</B>

<P style="font-size: 24pt" align="center"><B>NetREIT<BR>
</B><FONT
style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>CALIFORNIA</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>001-34049</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>33-0841255</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>365 South Rancho Santa Fe
Road, Suite 300<BR>
San Marcos, California <BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>92078</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(760) 471-8537</B>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="30%" border="0">

 <TR>
  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>&nbsp;</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


<DIV
style="margin-top: 10pt; font-size: 1pt; width: 100%; border-bottom: black 1pt solid">&nbsp;</DIV>
<DIV
style="font-size: 1pt; width: 100%; border-bottom: black 2pt solid">&nbsp;</DIV>
</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
</DIV>

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<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="left"><B>Item&nbsp;2.01 Completion of
Acquisition or Disposition of Assets.</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">On August&nbsp;12,
2008, Registrant completed the acquisition of the Waterman Plaza property
(&#8220;Waterman Plaza&#8221;) located at 444-464 S. Waterman Avenue, San
Bernardino, California 92408. Waterman Plaza is a newly constructed
retail/office building of approximately 21,200 rentable square feet and
approvals to construct an additional 2,300 square foot building. The property
consists of a total of 2.7 acres. On the date acquired, 83.6% of the property
was under lease. The seller guaranteed base rent on the vacant space for a
period of twelve months up to an aggregate maximum of $233,200.

<P style="font-size: 10pt; text-indent: 4%" align="left">Registrant&#8217;s
purchase price for the property was $7,350,000, of which $3,850,000 was paid
with the proceeds from a secured loan from MTL Insurance Company (the
&#8220;MTL Loan&#8221;).

<P style="font-size: 10pt" align="left"><B>Item&nbsp;2.03 Creation of a Direct
Financial Obligation.</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">On August&nbsp;12,
2008, the Company Funded the MTL Loan comprised of a fixed rate Promissory Note
in the amount of $3,850,000 from MTL Insurance Company, Oak Brook, Illinois
60523. The Promissory Note bears a fixed interest rate of 6.5% per annum and is
due on September&nbsp;1, 2015. The MTL loan is secured by first deeds of trust
on Registrant&#8217;s Waterman Plaza property. The Registrant paid a total of
$38,500 in prepaid finance charges in connection with the MTL loan.

<P style="font-size: 10pt; text-indent: 4%" align="left">The loan requires
regular monthly payments of principal and interest commencing on
September&nbsp;1, 2008. The total of unpaid accrued interest and principal is
due and payable on September&nbsp;1, 2015. The Company used $3,850,000 proceeds
from the loan to acquire the Waterman property, as described in Item&nbsp;2.01
above.

<P style="font-size: 10pt" align="left"><B>Item&nbsp;9.01 Financial Statements
and Exhibits.</B>

<P style="font-size: 10pt" align="left"><B>(a)&nbsp;Financial Statements of
Real Estate Acquired.</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">Not applicable.

<P style="font-size: 10pt" align="left"><B>(b)&nbsp;Pro Forma Financial
Information.</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">Not applicable.

<P style="font-size: 10pt" align="left"><B>(c)&nbsp;Company Shell
Transactions.</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">Not applicable.

<P style="font-size: 10pt" align="left"><B>(d)&nbsp;Exhibits.</B>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="8%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="87%">&nbsp;</TD>
 </TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


 <TR valign="bottom">
  <TD valign="top" align="left" style="border-bottom: 1px solid #000000">Exhibit&nbsp;No.</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

 <TR valign="bottom">
  <TD valign="top"><DIV style="margin-left: 0px; text-indent: 0px">4.7</DIV></TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Promissory Note in favor of MTL Insurance Company dated August&nbsp;5, 2008 to be filed by amendment </TD>
 </TR>

<TR><TD>&nbsp;</TD></TR>

 <TR valign="bottom">
  <TD valign="top"><DIV style="margin-left: 0px; text-indent: 0px">4.8</DIV></TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Deed of Trust secured by Waterman Plaza in
favor of MTL Insurance Company dated August&nbsp;12, 2008 to be filed by
amendment</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">2
</DIV>

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<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="center"><B>SIGNATURES</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">Pursuant to the
requirements of the Securities and Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.






<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">

<!-- Begin Table Head -->
 <TR valign="bottom">
  <TD width="40%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="50%">&nbsp;</TD>
 </TR>
<!-- End Table Head -->

<!-- Begin Table Body -->


 <TR valign="bottom">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2" valign="top" align="left">NetREIT<BR>&nbsp;<BR>&nbsp;</TD>

 </TR>

 <TR valign="bottom">
  <TD valign="top" align="left">Date: August 18, 2008</TD>
  <TD>&nbsp;</TD>
  <TD>By:</TD>
  <TD valign="top" align="left" style="border-bottom: 1px solid #000000"><I>/s/ Kenneth Elsberry</I></TD>
</TR>

 <TR valign="bottom">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Name: Kenneth Elsberry<BR>
Title: Chief Financial Officer</TD>
 </TR>

</TABLE>
</div>


<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">3
</DIV>




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<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="center"><B>EXHIBIT INDEX</B>




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="8%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="87%">&nbsp;</TD>
 </TR>
<!-- End Table Head -->

<!-- Begin Table Body -->
 <TR valign="bottom">
  <TD valign="bottom" align="left" style="border-bottom: 1px solid #000000"><B>Exhibit<BR>
Number</B></TD>
  <TD>&nbsp;</TD>
  <TD valign="bottom" align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

 <TR valign="bottom">
  <TD valign="top"><DIV style="margin-left: 0px; text-indent: 0px">4.7</DIV></TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Promissory Note in favor of MTL Insurance Company dated August&nbsp;5, 2008 to be filed by amendment </TD>
 </TR>

<TR><TD>&nbsp;</TD></TR>

 <TR valign="bottom">
  <TD valign="top"><DIV style="margin-left: 0px; text-indent: 0px">4.8</DIV></TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Deed of Trust secured by Waterman Plaza in
favor of MTL Insurance Company dated August&nbsp;12, 2008 to be filed by
amendment</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</div>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">4
</DIV>
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