Investing in NNN bank property

[Jimmy H.]

Have read a little bit about this in other threads. I know (from being in banking) that the FDIC and other egulatory entities are making it quite hard on the banks. IMO the government caused many of our problems and is using the bank's as scapegoats to shield the blame. They are putting regulatory procedures on banks, not policies anymore, they want to control every minute detail of bank operations - and IMO want to control the banking system as a quasi gov't agency itself (as if it isn't already).

I have heard from many that the FDIC and other regulators have the intentions of shrinking the total number of banks nearly in half. I Think we have somehwere around 11,000 or 12,000 such institutions and they would like that number to be closer to the 7,000 range.

Even if this is not true, it is a fact that banks are closing left and right, almost daily.

I am interested in a bank property in my area that is on a fresh 10 year lease to Integra bank. I'm not familiar with this bank, they are regional bank with 75 locations throughout IN and KY (maybe OH). I want to know how to do my research and due diligence on this firm. The FDIC will let you know on their website they day after they closed a bank down, but I want to know how this bank is fairing before that happens. How do you do appropriate due diligence on banks? If Integra did go under, once the FDIC forces an acquisition of Integra by another bank, do they have to honor my lease?

This particular branch is in a growing peripheral town about 30 minutes outsid emy hometown. It is on a growing side of town and is relatively new construction. It is a fresh 10 year lease, listing price of about $1.9 mill and a CAP of about 11%. After 5 years the CAP will increase to 13.2%. the bank is newer contruction, not an old dinky building, 3 drive-thru lanes and a nice lobby.

If the bank stays afloat it seems like a pretty good deal.

I am curious if anyone has experiences with a recommendations about such an investment.