Looking to buy NNN investment property

[Vijay Sid]

I am looking to retire early and interested in purchasing a fixed income commercial property. I have been reading about NNN investment properties which will have potential to generate monthly income with limited or no landlord responsibilities. I have been researching around the web to find out about NNN leases and listening to prod casts as well.

However I am requesting help to find a good real estate broker who can help me to navigate through the process of buying NNN investment properties, help me with proper duedeligence process, understand the risk mitigation techniques if NNN goes dark, come up with a plan and exit strategy. Most of them require purchasing a million dollar or more NNN property, my budget is around 500K and will be taking a mortgage . I have called some of them and they require a minimum of 1 million investment, is it very hard to find a brokers who can help me with this kind of purchases.

Has anyone gone thorough the NNN process with lower investment amounts like 500K or less and had good results, what kind of pros and cons I may run into purchasing NNN properties. Is it hard or easy to get financing , if so how much down payment is required , do we have 15 or 30 years mortgages on the market. Does interest rates or higher when compared with traditional home market. Can you please share your experiences or provide guidance

I have been researching properties and finding out that most of the properties on sale has less than 5 years and then the options to renew? Is that a good investment to get in to, what sort of duedelegence is required. I heard terms like corporate guarantee, good credit rating, location etc. 

How hard is it to get a new lease in case tenant goes dark. The properties I was looking at are big national restaurant chains . What are the risk mitigation strategies.

Any help or advise is really appreciated.

Regards,

Vijay

[Joel Owens]

Vijay try to find a GRUNT on a commercial real estate team that is a junior agent. That's about the only shot.

500k NNN is like 20k house. Nothing worth anything out there much in that range...almost impossible. My minimums are about 2 million because I review 1,000 a week nationally for clients and I know what is out there in what ranges.

Are you an accredited investor? You might do better to go into a syndicate NNN deal with a bigger and better property than you might could afford on your own.

Even if you get a junior agent they are on splits with a team. So if 3 people on team and commission is 15,000 on 500k sales typically HALF goes to brokerage. That leaves 7,500 between 3 people to split. Senior broker might get 3,500, middle agent 2,500, junior agent 1,500. They will typically have junior agent do all the work because other brokers are working on bigger deals.

Even me as a principal where I would keep it all the amount of work you are asking for in a 500k transaction is a ton to make only 15k. Commercial brokers like larger deals where they make 80k,100k commission at a time.

You could use a commercial attorney that is experienced in retail but costs could be 10,000 to 20,000 on a small deal like that if attorney is doing everything versus a broker helping out.