NNN Industrial How to make money

[Ronald Rohde]

Wanted to share a recent deal that we have under contract to buy. This is for me personally, not as a lawyer. We own industrial in an area of Ft. Worth, nice little bedroom pocket city. A listed property popped up 4.5 acres, for $2.5 m, tenants are rolling next 1-2 years, but the flyer was listed as $4,500, $7,000, and $6,000. 

That's it. Most people would assume gross leases and pass. There's a lot of pain getting existing tenants to switch to NNN, but I digress. We love the area, yard storage, paved etc. Get a copy of the leases and realize they are NNN (but with a base year). Tenants are reimbursing for a lot of expenses, not gross at all.

We are under contract for $2.4m, have 2 tenants signed for $246,000 NOI NNN. Debt at 8%, true ten cap with no management.