Triple Net Lease Downpayment Amount - How Much to Expect
I’m going through a liquidity event with a business that I own and am preparing for some RE investing. 

My wife is currently a small RE investor and classified as a real estate professional so even though I’m not, I get the benefits of her tax status when we file jointly. The deductions that I can take from my RE can be applied to any form of my income and will help lower my tax burden on the proceeds from selling my business. 

In short, my game plan is to put as little money down as possible on properties that I believe in, do cost segregation analysis, take my Y1 bonus depreciation, and apply that depreciation to my liquidity event proceeds.

I’m looking into triple net or absolute net leases to help me accomplish this. Also, I’m open to zero cash flow if it helps me reduce my down payment and maximize my loan amount. 

If I use a DSCR loan, what do you think is the minimum downpayment I need to make here?

I’m finding different information online - ranging from 10% to 40%. 

Remember, my primary goal is to take out the maximum loan with the least operational risk that I can, so I can  maximize my Y1 bonus depreciation and apply it against my liquidity event proceeds. 

Thanks in advance for any thoughts.
[{"id": "hecgee5", "text": "That\u2019s a great strategy. I do a lot of volume on the triple net side. Right now you should expect to put at least 35% down. Pre-pandemic it was 30%, but now most banks have required 35%. If it\u2019s a shorter term lease or more risk they may require more down or more in reserves, but assuming a base of 35% should be a realistic assumption in Today\u2019s market.", "replies": [{"id": "hef0gwn", "text": "Totally agree! But would like to point out there is vastly increased competition, I see a lot of deals with financing losing to all cash. I'd say depending on how bad you want that property or how competitive it is, be prepared to choke up to 50%.", "replies": [{"id": "hnjs1og", "text": "Agreed. The market has picked up significantly over the past several months and the amount of capital trying to place in these kinds of vehicles far outweighs the supply currently on the market. You need a good deal team and network of deal sourcing to secure deals in today\u2019s market. If you can take down all cash refi after you can maintain a competitive edge. Or finance outside of the contract but that creates a bit more risk.", "replies": [], "depth": 3}], "depth": 2}, {"id": "hg99611", "text": "Does this also apply to AAA investment grade tenants? They are outliers but I think an Amazon warehouse or fulfillment center as a tenant may be able to achieve a significantly higher LTV on a long-term lease.", "replies": [{"id": "hnjsbdy", "text": "Yes it can vary both on quality of asset and also on strength of the sponsor. These are just general benchmarks we\u2019ve seen stick lately, but definitely can get more attractive for specific deals or borrowers", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hecj7qj", "text": "Zero cash flow would be your best bet if you can find one that fits. Typically, lenders are more concerned with DSCR than anything. NNN properties are typically lower cap rates so to hit the appropriate DSCR. This is likely why you're getting different quotes on equity since it would depend on what the person you're asking expects regarding the terms and rate on the loan and return on the property. I'm seeing 1.25-1.3x DSCR.", "replies": [{"id": "hed3d8f", "text": "I would second this as well. A lot of times I see a bare minimum of 1.2x DSCR but should plan for 1.25-1.3 to be safe", "replies": [], "depth": 2}], "depth": 1}, {"id": "hee7fk7", "text": "Wow, 10% sounds almost like an SBA 594 loan but that wouldn't be applicable in this case. I'm seeing traditional banks and credit unions looking for around 25% skin in the game for average income producing properties. If the asset is brand new or nicely polished and it has the full use for life left they may go to 20%. I saw lenders being more selective with their lending during covid (business as usual now), but I didn't see anybody jacking up their equity requirements. Not sure where the other poster might be seeing 35% or even 30%, but I'm working all over the country and only see those requirements on struggling assets or deals with some sort of hair. If you're being quoted 10% for the sort of asset you've you've mentioned I'd love to know what sort of lender is offering that? Best of luck!", "replies": [], "depth": 1}, {"id": "heghbke", "text": "It's hard to answer this as a blanket statement, because loan term, rate, and leverage will be determined by:\n - the creditworthiness of the tenant\n - the remaining years left on the lease\n - the location of the asset\n\nIf you have a strong credit tenant and a long-term lease, you can get to 70-75% LTV, which would be 25-30% equity plus closing costs.\n\nA couple of 70-75% LTV loans we've arranged recently:\nhttps://www.stacksource.com/financings/net-lease-keller-williams-office\nhttps://www.stacksource.com/financings/ca-national-guard-headquarters", "replies": [], "depth": 1}, {"id": "hejk5i4", "text": "I'm looked into this and I would get professional tax advice first.\n\nI'm a physician and was hoping that a collection of STNL NNN depreciation harvested by my wife would offset my income.\n\nMy accountant said \"wrong\".  He claims that these investments by definition are so 'hands off' that they wouldn't survive an audit by the IRS as \"active management\" for a real estate professional.  \n\nI'm very happy to be told I'm wrong, and if someone in this sub has _successfully_ used STNL NNN loses to offset other income, please chime in.", "replies": [], "depth": 1}, {"id": "hfyebuf", "text": "Just picked up a NNN in Florida with a National tenant with a corp guarantee. 75% ltv. \n\nNote that I have a good relationship with my lender with a long track record.", "replies": [], "depth": 1}, {"id": "hhmcniy", "text": "Out of curiosity what\u2019s the size of the deal(s)?", "replies": [], "depth": 1}]