What do those of you who invest in CRE know about NNN deals? What do you think about this deal as an investment?
[{"id": "eb4cimg", "text": "If i buy it can i spit in trump\u2019s burger when he inevitably comes to eat?????", "replies": [{"id": "ebdx06i", "text": "lol I suppose you can do whatever you wish as long as it doesn't put you in default of the lease as the landlord. ;-)", "replies": [], "depth": 2}, {"id": "hitpmg0", "text": "Lol, yeah! Cause Joe is really gonna be a boon for commercial real estate investors!! \ud83e\udd26\ud83c\udffb\u200d\u2642\ufe0f\n\nGood fucking lord.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eb55kaw", "text": "It's boring.", "replies": [{"id": "ebdwko8", "text": "haha hmm...Why is that?", "replies": [], "depth": 2}], "depth": 1}, {"id": "eb70psu", "text": "I spend most of my day sourcing single tenant NNN deals (retail and industrial) across the country for investment purposes.  What is it you would like to know?", "replies": [{"id": "eb95sv2", "text": "Not to steal part of the thread here but for people looking at doing zero cash flow deals, what are some average financials for say 1 to 2M dollar investments in reasonable areas that aren't super hot or in Kansas?  \n\nI.e Can you still make it work with like 15 percent down and a 5 to 6 percent interest rate?  ", "replies": [{"id": "ebapq76", "text": "I can only speak from a mathematical perspective and current market conditions.  I only do commercial real estate and I dont (and have never) done a zero cash flow deal (also known as \"Zeros\").  The first challenge to overcome would be to find a high cap rate (11% cap or greater) property that is occupied with rental income (this will be very difficult to find with a tenant that you can rely on to pay the rent).  The next challenge will be to find a lender (most likely hard money) that is willing to take the risk of this type of tenant with such little down payment on a $1M-$2M property.  Most \"Zeros\" in CRE are much larger properties.  $15M and up on average.  Someone else who has actually done a small Zero would likely be a better person to respond.  This is somewhat out of what I normally do.  Sorry I could not be of more help.  ", "replies": [{"id": "ebdwr2x", "text": "I would agree. I see mostly larger price point zero cash flow deals. A lot of zero cash flow drug stores can be in the $5MM-$7MM range, but it appears the zero cash flow deals are more of a benefit to high net worth individuals who simply need to park cash and plan to pass the property on as a legacy to their kids.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ebdx4qo", "text": "I do the same. I just have not found a sub-reddit with that focus and wondered where all the NNN investors discuss deals on reddit. I'd be interested in building a specific community to share stories and brainstorm retail deals specifically.", "replies": [{"id": "ebe7c0g", "text": "\"If you build it, they will come\"  ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eb7x0id", "text": "West Palm Beach is a solid metro. The lease has over 10 years left. The property has been updated to Burger King's new concept. The operator has been at the location for over 3 decades. This is easy to finance also. Good luck with the sale!", "replies": [{"id": "ebdwrlx", "text": "Thanks!", "replies": [], "depth": 2}], "depth": 1}, {"id": "eb96jiw", "text": "I've been kicking around the idea of getting into CRE via NNN deals and this one is interesting I admit because of the location even if it were to go dark.  My only concern would be this operator retiring since he has been there for so long!  \n\nSeems like you'd have to put a pretty good chunk down though to make it cash flow given current rates right?  ", "replies": [{"id": "ebdwyuk", "text": "The operator was originally Burger King Corporate, but the franchisee who took over hasn't been operating the store since the 80's. The current franchisee was actually a spin-off from a larger regional franchisee of Burger King locations, so a seasoned operator with a solid portfolio of units. With that said, the tenant is still Corporate BK.\n\n&amp;#x200B;\n\nIt will be negative leverage if you financed the deal, but banks are still willing to do 70% LTV, you would just need to be okay with negative leverage. I've seen it make sense for someone in a 1031 exchange where they can park the bulk of their cash into this deal and even at slight negative leverage, it's worth it because there's nothing out of their pocket and they are able to defer those capital gains taxes.", "replies": [], "depth": 2}], "depth": 1}]