NNN - Trying To Get First Deal.
I am interested in investing in NNN properties. I have been looking at it for a while and following the new properties coming to the market. I have not made any deal yet but I am ready now. I have the following concerns.
1. When I call the broker listing the property. They are not very co-operative may be they have lot of demands or they think I am not serious. So what is the right way to go about doing it. Are there any companies which specializes in NNN properties and help buyer find the properties for their criteria. If there are such companies I would like to work through them.
2. What kind of loan you can get for this type of properties. Are loan usually tied to the 10-year treasury or prime. What should I expect to get now. I am willing to put up-to 25% down. I am trying to get the property around 1 Million.
3. How do I make sure that property is priced right. I can look at the cap-rate but may be company is paying more rent to get the better price for their lease buy-back. May be the company I referred in 1 could help or I should rely on appraisal and if it comes close to price then just take it.
4. What kind of due diligence needs to be done. Review lease, insurance etc or I should also look at the revenue generated, profit etc for the business. Do I really need to look at the profit etc if it is a big National tenant.
5. What type of property would you guys recommend of the newbie. I found few gas station deals. Should I do it if the survey and environment report is good.
7. Can anybody recommend the site or book to read in order to get more information about NNN investing.
rajwani
1. I think there is quite a demand for NNN properties and particularly the ones with national standings. So the agent prefers to deal with established corporations or LLCs. Probably they feel the companies would make quick decisions as comapred to individuals.
2. Various loans are available some with short terms
3. One should ask the broker for comps
4. Personaly I like to do all the due diligence. We have example of what happened to Caldor and KMart properties.
5. Depends on individual
6. I do not know of any website dedicated to NNN properties. This site does have discussion on such issues.
[ Edited by amerinda on Date 09/17/2005 ]
To : Moderator
Sorry that the comments got posted twice and I am not sure how to delete one. Please disregard the duplication.
Thanx
Amerinda[ Edited by amerinda on Date 09/17/2005 ]
We just acquired a large portfolio of NNN properties, if your interested email me.
The 5.9% to 7.2% sounds about right for a full doc loan on a 1-2m property. some of the best loan rates i am seeing are on the 10 yr fixed 30 yr amort.
with 20% down you should be able to get a good rate
Mark
Most of the properties I am looking at on various website like CBRE, NNN propeties really does not make you any positive cash flow. May be a 5% return on the downpayment you have made.
This is an old thread..., but it does apply to my situation now and I would like to ask for some help.
I am in the process of acquiring a NNN property in Cleburne, TX for $830k; it is a KFC. I plan to put 30% down. Does anyone have any lender that can be recommmended?
thanks
phuong
GET THE LEASE. Yu can get excellent financing if the cap rate is decent and you have a credit grade tenant but you have to get the lease.
lassitermarketing- what would you say excellent financing would be on this type of deal assuming it is a 15-20 yr lease?