All Forum Posts by: Morris Pearson

I'm about to acquire my first commercial property and at the same time acquire a new commercial tenant. I'm structuring it as an Absolute NNN Lease where the tenant is responsible for repairs, insurance, and taxes for a significantly reduced rent. What do I have to give the tenant so that they can pay the insurance and taxes on time? Do they have to go through me where they reimburse me for payments? Or do they pay both directly?

I'm looking to purchase real estate so that I can build a parking lot on it. The cities I'm looking at include: Chicago, Boston, New York, San Francisco, Philadelphia, Los Angeles, and Dallas. (List of the highest parking rates across the US). I'm also looking into parking around airports, which I've got one response saying they don't have real estate for sale, but have private contractors take over closed shuttle locations or operations. I currently don't own any real estate but have $60,000 to put down, a credit score above 800, and $100k+ job. I think for financing for purchase and upgrades a commercial mortgage loan may be the best way to go. So far my search reveals that in major cities parking "lots" are near the million dollar range and parking "spots" run 30k to 100k. My thoughts are I may have to pick other cities that may have a lower parking rate, but more affordable real estate pricing. My search criteria include: 

-Only paid park options around it, or with limited to zero free parking options
-Located on or very close to a strip of shopping stores, bars, clubs, or restaurants
-Be located on a road with a high vehicle count per day
-Low crime neighborhood
-Doesn't have to be vacant land, but should be zoned appropriately for parking lot use

Currently I'm thinking my first step should be hooking up with local agents that can help me find leads in the cities I'm looking. I'm open to any additional advice, recommendation, and direction anybody has to offer. Thanks in advance!  

Thanks for the info, I will definitely read up on it!

I'm a long time Bigger Pockets ghoster and short term real estate action taker (about 3 months), but I've discovered a niche I want a pursue and am going all in for it. Recently I've been interested in finding suitable vacant land for ground lease NNN tenants. I'm well aware that ground leases are a less desirable option for tenants, as many would prefer build-to-suite, but it is a road I'm willing to take. Currently I'm adjusting our search criteria based off the feedback I'm getting from tenants like Mcdonalds, FIve Guys, Auto Zone, CVS, Sonic, Subway, ect...The first property we got under contract was directly on a highway with with a vehicle per day count (13,000), but had a 1 mile population density of under 1,000 making it too rural for many of the tenants we talked to. This weekend I'm modifying our criteria again, but currently have the problem of having too many properties under contract. We currently have 4 properties under contract and have a few more ready for me to sign, but I haven't found the ideal tenant yet or put together a profitable exit strategy. The properties we have aren't terrible as they all have 5 mile population densities of 50,000 to 110,000 and are on main roads with at least one having a vpd of 20,000. I know for the future the properties we acquire will need to have much better stats than this, but I have to assume there are some tenants out there that will find our properties desirable. This weekend I'm handing my lead generation team a list of self storage companies, Co-Working Companies, and Nursing Homes to contact as well as a list of vacant land buyers. I guess what I'm asking is are there any other more common niches that may look to sign a ground lease or purchase vacant land? I was thinking of office builders and physician groups, but putting together a list of contacts for them is becoming quite difficult. Any suggestion will be appreciated.

 Commercial Real Estate specifically ground leases.

I haven't done any wholesaling, but live in downtown Louisville and would love to network and help with anything you may need.  

 Thank you for your tremendous insight!

Thanks for the reply! I'm interested in commercial properties particularly NN or NNN ground leases. I know I could probably right off some expenses for NN if I was in charge of maintenance for example roof repair, but what about true NNN where I'm not in charge of anything?

Very Nice Job! Keep that train rolling! What I've heard is that after the first deal you get a second, than third. than fourth ect...ect.. It's like rolling a snowball down a hill and watching it grow from a distance. Having two properties to start out only makes that starting snowball bigger. Great Job and Good Luck! ...I've got to start making my own first snowball! Lol!

Are there any tax right offs for a ground lease?