Hard Money Lender Needs Due Diligence Help for Commercial Note

[Kris Fox]

I have a borrower who wants to make me an equity partner on a commercial deal he's looking at. There's a 6000 sqft building that currently has a tenant. Borrower has been around a long time and has a tenant ready to sign a new lease at $6/sqft NNN. I'm waiting to hear back when the current tenant's lease ends.

Purchase price on the property is $100k.
Conservative cap rate in my area is 10%. Obviously if these numbers are accurate this will be a heck of a deal. Get performance up for a couple of years and have a property that cash flows $33-$35k per year. Does NNN truly get me $36k/year? And then 10 cap will get me to a value of $360k.

The property requires about $15-$20k of exterior repair that the tenant is willing to do.

This seems like one of those too good to be true deals.

How do I protect myself here? Can I get any assurances?