All Forum Posts by: Bo Wang

any general contractor recommendation for Indianapolis area? thanks

For purchasing the out of state property, is it normal to use the selling broker as my buying agent? Any drawback for doing this or it is better to use local broker for the purchase?

Also currently I only have LLC setup in my local state, for out of state property, can I first use my local LLC for submitting offer, if it is got accepted, then I immediately start setup new LLC in that state, then switch to the new one later? Can I switch this before the close, or I have to do this after the close? Thanks again.

Thanks @Winston Parks for the tips, that is very helpful.

@Joel Owens, thanks for detail analysis, I just saw your email and replied there, any further help will be really appreciate.

@Jon Holdman, thanks for pointing out bankruptcy risk, looks pick industry is even more important than the location. If the tenant directly got bought by another company (not go through bankruptcy),  I assume the new company will guarantee the original lease?  If the tenant fill bankruptcy (chapter 11 case?) but also got bought by a new company, what will be this case here? Does the original lease still guaranteed by the new owner? Thanks again.

 @Joel Owens, thanks for detail explanation. Yes, I do see cap rate change a lot for different area. In CA, could not find high cap rate, but I do see good cap rate for out of state opportunity. 

 @Ed LeGrand, currently I do only focus on the single tenant lease as well, but still evaluate which property type should I focus on, such as drug store, franchise store, restaurant, etc. Still a lot of to learn and long way to go before I pull the trigger. :)

I talked to several commercial loan lender/broker already, none of them mention that I will not qualify the corporate guaranteed NNN lease. They mainly care about how much down pay I can put down, and the credit score, etc. They give me a price range for me to consider for the property price range as well. I do mention that I am only interested in the big corporate guaranteed lease, they have no issue with that. Hope they are clear with my request, but I will be surprised if corporate guaranteed lease has such limitation for the investor. I still have a lot of to learn and thanks for your suggestion.

Thanks @Charlie MacPherson, @Ash Patel, @Eduardo Zepeda for all the suggestion, that does help a lot.

For maintenance, to make sure the tenant maintain the property properly, is that possible I have inspector inspect the property regularly (such as yearly), if there are deferred maintenance, can I request the tenant to fix it? Does this the normal case?

Also, I do see some NNN lease property vacant during the lease, if they are corporate guaranteed, the company will still continue pay the rent until lease end, but how to handle these vacant property during this period before the lease end? Does the landlord has the power to re-rent to other tenant?

Thanks again.

I am newbie to commercial real estate and study this recently. I plan to purchase out of state commercial property with NNN lease. Per my understanding, for NNN lease, it is leasee's responsibility to handle all maintenance cost and pay insurance and property tax. So from landlord point of view, I should be hassle free ideally and net rent should be my net income.

Anyone has out of state commercial property experience with NNN lease here? Is that easy to handle for the out of state investor who could not visit property easily?

Also since landlord has no maintenance responsibility for the property, do I still need management company to manage the property?

How can I guarantee the leasee will pay the property tax and buy the property insurance for the property? Will I get tax payment receipt and detail insurance policy copy which I can make sure they have the correct policy and enough coverage?

Thanks a lot for any suggestion and advise.