Net Lease with Assumable Note

[Tiffany Gelzinis]

Hello BP! 

I am working with a new client that is interested in Net Lease opportunities that have assumable notes. I am (obviously) having a hard time finding these opportunities and I am also having a hard time determining why he would want to assume a note. I am new(er) to the commercial side of real estate. If you have any ideas or advice I would greatly appreciate it! 

Thanks in advance! 

Tiffany Gelzinis

[Jason Hirko]

@Tiffany Gelzinis You're right in what you're saying, except I don't think that is what your client is trying to do. I think it sounds like he is trying to take over someone's payments - effectively assuming the note without the lender's approval. In this case, the seller would still have his name on the note, but wouldn't have much to show for it. Getting a commercial loan on a net lease investment that covers the payments is hard enough, let alone trying to find one where you can assume the note. Before I'd waste any more time on him, I'd tell him you need to see proof of funds showing AT LEAST 20% of the price of the properties you're looking at. If he says 'but I want to assume a note' then you'll know he's not the real deal