Triple-Net-Lease Financing

[Devon Marx]

Hello! 

I've been looking through varies types of real estate investments and came across commercial properties with triple-net leases for sale. I'm curious how funding works for these types of properties. I've been primarily looking at retail spaces that houses companies like Walgreens, CVS, etc.

Any input is great!

[Joel Owens]

In most cases you are putting 25% down.

Lenders want to see net worth close to the loan balance after down payment and 10% liquid.

For example a buyer purchases a 4 million pharmacy with a good amount of years left on the lease with 1 million down. Lender wants to see net worth close to 3 million and 300,000 of that liquid. It's not an absolute criteria.

Pharmacies CVS, Walgreens, Rite Aid go from generally 2 million to 20 million depending on location and length of term left on the lease.

Have to be working with loads of cash to play in this space as a buyer.