NNN Lease Without Being Accredited?

[Blake Harris]

I am currently a student and will be commissioning into the Army next year. While my short-term goal is to start my real estate investing journey and portfolio by utilizing the benefits of the VA Loan, my longer-term goal is to get into the commercial niche of retail and industrial with NNN Leases. I understand that a lot of investors in the NNN Lease space have large amounts of liquid money assessible and are accredited investors. I have a creative strategy that I potentially plan to use down the road that will involve using the properties that I purchase with the VA Loan to free up around $500-600K in liquid money. My question is, since my W2 income will not be nearly enough, is there ANY possibility that a commercial NNN broker or bank would take a chance on an investor such as myself who has the liquid money available by is not an accredited investor? Would having a good pre-existing relationship with an unconventional bank (such as a portfolio lender) increase my chances? Or will being accredited and having liquid money give me the only possible opportunity? Thanks in advance, any response is valuable!

[Jacob Franz]

Hey Blake, banks should still be willing to work with you if the deal makes sense. In looking at a NNN lease property, banks are going to initially focus on the length of the lease term remaining, the credit of the tenant, the location of the property, and the rental rate as compared to the market. Your ability to provide a substantive personal guarantee is going to be something they are going to want to see as well, but they will likely still play ball as long as you can get a decent downpayment in place and the deal still makes sense. As Landon mentions, the other option is to partner with an individual with a strong balance sheet. In the end, if a bank likes the lease terms and credit, they will probably work with you as long as you can put down a decent chunk of change for the downpayment.

Let me know if you have any other questions or need help as you begin tracking down potential investments!