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Updated about 7 years ago on . Most recent reply
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Out of town NNN investing.
I invest in local NNN real estate. I'm considering investing in out-of-town NNN. Out-of-town NNN would help diversify my portfolio. Also, if I buy the out-of-town NNN at my common vacation spots, then I could deduct travel expenses.
How does one perform due-diligence on non-local NNN real estate?
I am ok with employing a commercial broker who knows the location, but how do I know that I can trust that broker?
Also, if I instead get a strip mall and need a property management team, how can I find a property management team that I can trust?
Thanks in advance!
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How does one get a good assessment of the location? Two buildings could have the same lease structure with the same tenant but have different value depending on the location. For example, a Burger King in the growing part of town is worth more than the Burger King in the crime-ridden part of town even if those two Burger Kings have identical lease structures.
As an out-of-town investor, it is difficult to assess the value of a location. I could rely on the local commercial broker's opinion, but that means that I have to trust someone that I don't really know.