Thinking about investing in NNN. How risky is this really?
Hi there. I'm looking to retire in the next 10 years, so I'd like to invest in some sort of income producing asset. I'm 40 w/ $900k to my name (not counting 401k and a paid for house).

I'd like to get specific if possible. I've been looking at these listings for example:

   [Arby's for $2M](http://www.loopnet.com/xNet/MainSite/Listing/Profile/Profile.aspx?LID=18499830)

   [McDonalds for $2.7M](http://www.nnnex.com/page_property_view.asp?ref=19203)

   [Starbucks for $1.2M](http://www.nnnex.com/page_property_view.asp?ref=16540)

Obviously I'd be leveraged quite differently across these scenarios, but I think I could have any of them paid off in 10 years. 

Any opinions on just how risky these types of investments would be? I'm really tired of the stock market, and would like something more predictable/stable even if the returns aren't quite as good. At this point in my life, I'd value stability much more than anything else.

Note, for at least 2 more years, I make ~$400k/yr, but could easily be unemployed after that. Hence, my eagerness to be building an income stream.





[{"id": "cesjc9q", "text": "Look at the credit worthiness.  Franchise vs corporate, length of lease, reversion, and the strength of brand.", "replies": [{"id": "cesjwoe", "text": "Thanks for that. I actually looked into [Arby's credit rating](http://www.netleaseadvisor.com/tenant.php?t=4) and was shocked to see it was only a B+ which is considered \"highly speculative\". I would have thought a big brand like that would never default on their lease, but apparently they have a rather high likelihood.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cespwoh", "text": "NNN are great investments.  Right now is not the best time to buy though, as cap rates are really really low, especially for retail.  Look at NNN industrial.  Maybe a FedEx warehouse?", "replies": [], "depth": 1}, {"id": "cesq3i1", "text": "Starbuck's lease term is too short on that deal, stay away.  Cap rate in that McD's is too low, stay away.  If you're looking for a higher return, Family Dollars are 7.25% cap rates for new construction, FedEx 6.50%, Advance Auto Parts is 6.40%.  The Boulder Group is a good resource as well.  http://www.bouldergroup.com/NNN-Properties-For-Sale.html\n\nLook at their NNN lease report.\n\nhttp://www.bouldergroup.com/research.html", "replies": [], "depth": 1}, {"id": "cessc21", "text": "As well as creditworthiness and term, one thing to watch out for is what the tenant is likely to do at the end of that term.\n\nFor example pharmacies tend to change their formats and positioning every decade or two, rendering the old buildings obsolete. Meanwhile fast food businesses usually stay in place and can be easily reused for other fast food if the original tenant leaves. ", "replies": [], "depth": 1}]