Commercial Real Estate (NNN leased proeprty) Investment advice? - national real estate investment club
Hello. I think to invest in commercial real estate is a strong national tenant NNN (7-11) let. That would be my first investment in commercial real estate and wanted to advise you.
1) The property is leased for 10 years, with 3 of 5 options to extend for ten years. Rentals climb to 10% every five years with the presence of more than 6.5%. Is this a fair price for a property NNN?
2) Search for my return, what to take, such as interest and closing costs. I assume a rate of 6.5% - Is it reasonable? I have excellent credit quality and I am willing to put down 20-25%.
3) What are the startup costs other than I can handle? I think that perhaps the legal fees for the review of the current rent and the cost of setting up a Corp or LLC. Am I overlooking something?
4) What are the costs to be incurred, you may permanently? I just think the fees of lawyers and accountants - am I missing something?
Should be 5) The pitfalls of the things you consider?
Thank you for your help.
Wednesday, January 20, 2010
National Real Estate Investment Club Commercial Real Estate (NNN Leased Proeprty) Investment Advice?
3 comments:
Maximum rate of 6.5% on NNN lease is not bad, especially because 95% of the owners responsibility for the control of your mailbox to the bank. I would further below, if possible, increase your CCR (cash on hand and back). Take a look at the papers the lawyer is a good idea, especially if he / she will not pay $ 800 for a little light reading on the couch in the office. Settings, LLC is a good idea to restrict only to their personal liability (which you do not want to be sued personally for someone to fall on the ice in the middle of the parking lot.
Look at the area of the city .... This shop is not good for customers or no possibility of damage to the building because of problems ?.... What about the traffic situation ... People can very easily into the store?. . Are you in a corner hard or soft ?......
Happy Investing
Be careful when you are investing in commercial properties/real estate....estate agents
Post a Comment