All Forum Posts by: Steve Sett

@Mel Park Really good points. I've had these same thoughts as well, so I'd be curious to see what some of the feedback is. I also would add, what is the resale of a NNN property mid way through a lease. In single family homes, the resale value doesn't have much to do with tenants. As a matter of fact, it's best to resell a single family vacant. My point being, all things constant, I usually see an appreciation of about 1-3% in addition to the loan being paid down creating equity. After about 5 years, I can bank on reselling the property for at least what I paid, if not more and take a profit. It seems that NNN properties get their valuations based on the tenant and the NOI. Let's say I were to secure a NNN with a high rated national brand and qualify for the 30 year amortization as mentioned by @Joel Owens. What is the value of the property 5 years later? Does the NNN property decrease in value or increase? 

@Joel Owens I like your detailed responses to many of the questions I've seen posted on the CRE forums. After reading several of the posts, it seems like commercial property (especially NNN) have pretty low rates of return when compared to how much money is needed to get involved. I just ran numbers with a lender on a NNN QSR property and the cash flow came out to ~4%. I know I'm not giving much detail on this particular example, but it seems like most of the numbers I run are low ROI. Is the real advantage to anyone owning NNN to get a relatively secure return on money whilst not having to deal with headaches of property ownership?

I'm also comparing all of my commercial investing research against my experience in single family rentals, flips, etc. My returns are much much higher and the barrier to entry is much lower. I also have not had (Knock on wood) too much time spent on managing the properties and keeping them rented to long term tenants. Curious to get your take on this and maybe have some further discussion about ways to make CRE generate more cash flow and after purchase appreciation.

Thank you!!

Forgive me if there is already a post about this kind of stuff. Please point me in the right direction if one does exist. I'm looking to connect with a commercial real estate loan officer to discuss the requirements/specifics of purchasing a commercial property. Both retail and residential. Thank you!

Hey @Paul Moore! Yes, I did get some solid "jumping off" points which I've been looking into. Admittedly, I have not completed my research with the leads they've provided. I'm in process at the moment and hope to have reviewed enough to be comfortable asking additional questions and getting a little more advanced with the topic. When I inquired about this I had literally ZERO experience on mobile homes/parks. I'm looking for something more passive then a single family and from what I've found, a land lease for an entire mobile park would likely be more in my line of interest. But it doesn't appear to be as simple as I thought. 

Thank you for the response! I was skeptical on whether someone would actually reply since I'm sure this is a heavily talked about topic. I'll start with the sources you mentioned and come back with any questions. I have tons but I'm sure the podcasts, books, etc will answer a lot of those. 

Hello All!

I wanted to inquire about Mobile Home Parks and the idea of owning/renting them. I've been looking for a different flavor of real estate to add to my portfolio and I've read/listened to a few people talk about their mobile home rentals and how they are happy with them. I think they have these on more of a land lease type deal from how I understood the discussion. Has anyone ever invested in this or currently own them and what can you tell me about the process of acquiring them, managing them, pros/cons, RoR or CAP on them, types of parks, etc. If there is a blog someplace that gives insight on these topics please list them and I'll take a look!

Thank you all for the assist!