Triple Net Cheveron Station
Hi guys,
I wonder if you guys can give me some advice as to what I need to watch out for in a gas station NNN lease? Are there environment issues that I should take into consideration? It is a two year old station, looks like it is well kept? If the numbers make sense, whatelse should I do to protect myself?
Thanks,
Michael
Freeinglife,
I have tried to get your email, but I am not a paying subscriber on this website, I am just using it free so I am not able to see your email address. If you are a paying subscriber would you please email me it should be under my profile. I look forward to hearing from you.
Oops, I should have read forum rules. I actually am not a paid member. I know that EPA regulations can be costly to comply with. That you should check into. Also, I was wondering how you are verifying that the sales outside and inside are accurate. Also, you should be aware of how long the lease is with chevron and if it is with a jobber or not also if there is a rebate associated with gas sales. Thats just for starters. I hope that helps.
joy
I was looking at something similar. Is "Phase I" environmental report enough to make sure that everything is good environmental wise or one should do something else too.
Marlene,
The fear of having a gas station go bankrupt and close leaving me with the bill, has also worried me enough that I think I will stay away from gas stations until I learn more about absolute net properties.
Marlene, where have you picked up most of your studying and learning on NNN from? I have had the hardest time trying to find subjective information on triple nets. You can find it on the internet if you search for 1031 exchange this is usually associated with triple nets. But have you come across any books that talk specifically to this subject, or any great magazine articles that give a good NNN 101, or primer that I have been looking for.
I am asking because I have learned quite a bit the last month from trying to find articles on the subject, I just want to be able to educate myself furthur and wonder if you might know where to look
Thanks,
Michael
Hold on, here. Sonic Burger may indeed be a credit-worthy tenant - but Sonic Burger is not, in fact, your tenant. The franchisee is. And the franchisee will have much less powerful credit than the corporation.
Consequently, you deserve a much higher cap rate; at least 9% in my opinion.