How to get started with NNN not a lot of capital to Invest upfront
What steps do I need to take to start Investing in NNN property? I don't have a lot of money could I get a loan ? Goal is to attract a major retailer CVS etc and get a long term NNN lease
[{"id": "gvm4ihe", "text": "I don't think so\n\nThis is barrier to entry to play in commercial real estate \n\nIf any Joe shmoe without big pocket can play with commercial NNN then it wouldn't be profitable", "replies": [], "depth": 1}, {"id": "gvm5akq", "text": "1. step 1, get more money", "replies": [{"id": "gvmscs1", "text": "\u2018I just bought a baseball glove at the store, how do I convince an MLB team to put me on the field?\u2019", "replies": [], "depth": 2}], "depth": 1}, {"id": "gvma4p2", "text": "You need to clarify if your buying a NNN deal with a national tenant or if you have a vacancy and are hoping to attract a national tenant. Regardless capital will always solve your problems.", "replies": [{"id": "gvmabgt", "text": "Haven't purchased yet still researching want to get with as little as possible", "replies": [{"id": "gvmepka", "text": "Ok but what are you purchasing? Is there a lease on the asset with the tenant you want?", "replies": [{"id": "gvmxbii", "text": "Fast food retail 10 year lease remaining", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gvma7j3", "text": "Two issues: one is that you're going to be at 25% equity and if you're a rookie without a big balance sheet it could be higher; two is that if you hypothetically could you'd be upside down every month. If you're wanting 5% on your money without capital for a NNN deal buy a stock with a dividend. If you want to be in real estate buy a rent house and work your way up.", "replies": [], "depth": 1}, {"id": "gvmaws0", "text": "You're looking at 25-30% down. So if you mean you only have $10k, you're probably out of luck. If you mean you only have $100k, then it depends on where you're looking to invest. If you mean you only have $1M, then you should be able to manage with a loan.", "replies": [{"id": "gvmscy4", "text": "Have about 60k", "replies": [{"id": "gvmt5jn", "text": "Try $600k", "replies": [], "depth": 3}, {"id": "gvmub1q", "text": "So you're looking at NNN - do you mean retail, industrial or a different asset class? What are the cap rates for the asset class(es) you're interested in for the market(s) you're interested in?\n\nChances are you're not going to find much of anything in your price range, frankly.", "replies": [], "depth": 3}, {"id": "gw47rix", "text": "If you have this money, you could try and acquire a property in the midwest (Illinois, Ohio, Pennsylvania, etc). I am in California and see the minimum down payment for these types of assets to be anywhere between 35-45%. You aren't going to find a CVS with the amount of money you currently have. You may be able to find a small post office in a rural part of the Country though. You may also be willing to find a seller who would \"carry\" with a good downpayment (depending upon their circumstance). THIS IS NOT LEGAL ADVICE OR INVESTMENT ADVICE....I'd put the money in crypto and ride the bull market. Your return may be better at this point...", "replies": [{"id": "gw4dal1", "text": "\ud83d\udc4d", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gvmcgqz", "text": "How much capital? Can you put some numbers for \u201cnot a lot\u201d? We can\u2019t help you without being as specific as possible so we can look at it from your exact situation. Do you know anyone in net lease?", "replies": [], "depth": 1}, {"id": "gvme5ql", "text": "You can get a near 100% loan, you just need net assets with a value well in excess of the loan you're seeking. Easy getting money when you can prove you don't need it.", "replies": [], "depth": 1}, {"id": "gvmeml8", "text": "&gt;  I don't have a lot of money could I get a loan ? \n\nNo.  Not from a bank, anyway.  You could try to convince someone to seller finance, but you don't really have a lot to offer and pretty much anything NNN is going to have a lot of demand - sometimes at prices that don't make sense to anyone who wants more than just a place to park money.  So the odds of a seller selling under these terms to you, versus selling at a higher price to someone who will give them the money now, is *extremely* low.  \n\nNow if you can learn what specific NNN tenants want, find an unoccupied or poorly-utilized property that could fit, get seller financing, reach out to NNN tenants/brokers, then...\n\nstill no, because NNN tenants will generally expect you to spend 6 figures minimum getting the building to their specs.  Although some will go for lower rent and finance the improvements themselves.  \n\nBTW investing in NNN real estate generally isn't a good way to make a lot of money.  It's a good way to make a lot of money into more money.  Residential, small multifamily, or even small commercial is a lot better for getting started.", "replies": [{"id": "gvmk4tx", "text": "Totally agree. NNN is more for equity preservation and yield than for capital appreciation. Typically it\u2019s for people in their endgame who want to put their money to productive work with very little effort. It\u2019s a common retirement vehicle.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gvmf8sj", "text": "Everyone here is just giving you bad advice.\n\nObviously you just go to the bank and tell them about your great idea. They\u2019ll give you lots of money to get a piece of land in a desirable neighborhood. Then you ring up CVS on the CVS hotline and they drop a store via a semi truck in about 2 weeks.\n\nBoom. You now own the land and the CVS.", "replies": [], "depth": 1}, {"id": "gvmq4j4", "text": "At least you should have money in the bank that could sustain you for six months.", "replies": [], "depth": 1}, {"id": "gvmwlk7", "text": "Only two ways..... seller finance or private money.\nyou can find private money if you look hard enough,\n a bank isn\u2019t going to fuck with this unless yo I have seriously right plans and budgeting and even then chances are slim without a large down payment and business account cash flow", "replies": [], "depth": 1}, {"id": "gvqn726", "text": "Buy Gamestock and hold.", "replies": [], "depth": 1}, {"id": "gvukxsf", "text": "Commercial real estate is capita intensive especially if you are looking to pyrchase high quality assets. Find trusted partners who are in the same boat and pool-in your money. I'd start with small strip centers. Cap rates on CVS and similar big names are ridiculously low to make any money.", "replies": [{"id": "gvuneh9", "text": "Thanks", "replies": [], "depth": 2}], "depth": 1}, {"id": "gwbytkb", "text": "Would you consider an industrial building with a 10 year absolute NNN lease in place?  Property is located in Tucson and is being marketing at a 7.5% CAP rate...", "replies": [{"id": "gwcfuul", "text": "Can you dm me the link", "replies": [], "depth": 2}], "depth": 1}]