Typical Loan Terms for an NNN Retail Condo purchase

[Jason Leu]

I've been investing in residential properties for the last 10 years, but am just diving into commercial real estate now. To get my feet wet, I was looking at starting with a triple net retail condo.... most likely in the $1M - $1.5M range. However, I'm unfamiliar with the typical loan requirements for this asset class. I've heard anecdotally that downpayment ranges anywhere from 30-50% down (that's a big range), and I've also heard that there's sometimes of a minimum of $1M required on the loan size before banks will want to deal with you. However, there's surprisingly little information that's readily available online. Can someone experienced with NNN investing help me understand what those requirements typically look like?

Thanks!

[Scott E.]

You wont have a problem getting a loan on a NNN retail condo as long as the tenant, lease terms, and HOA are strong.

The down payment requirement is going to be largely correlated to the income. A $1M deal that generates $70k per year in NOI will require less money down than a $1M deal that generates $40k per year NOI.