NNN Fee Simple acquisition ?

[Dan Krause]

How does the process work for a buyer/borrower acquiring a Fee Simple retail property that is advertised for sale via Fee Simple? I know that fee simple is the same as deeding a property to a family heir but this is not the case when the fee simple property is advertised for sale to the public is it? How does acquiring a NNN or ground lease fee simple differ from a "Motivated Seller" or "Seller Financed" retail property? What is the exact buying procedure? Thank you, Dan

[Joel Owens]

Dan terms are critical in the lease.

75 year lease - great.No increases,cancel at anytime,etc. - not so great.

You have to look at the building and land it sits on.What if this tenant vacates??

What rent are you getting now and what rent would you get from a second or third generational tenant??

If you are fixing to buy a NNN and it is coming up for renewal option soon after buying it go ahead and negotiate and make them commit early to renewing as a condition of purchasing.

This way the landlord can't dump a property say at 15 sq ft knowing the existing tenant is leaving or playing hard ball when the option comes up and then you re-lease it at 12 sq ft and overpay.