NNN lease sales. Help needed.
Hey there.  I'm a local/city broker (20+ years experience) who's starting to get national. And I need help. 

I've brokered thousands of deals in my career, but in the last quarter I've had some opportunities and identified some assets which were undervalued. So I went into contract.  

I am in contract on 3 buildings and I was trying to go national tenants with my NNN guarantors. I have 90 days to close with offers in place but LOIs are from franchisees (regional, 5+ locations). I didn't manage to get corporate (yet). 

I'm hitting an 11 cap and I was hoping to flip to a wholseale buyer as a portfolio @ 7 but since I'm working with franchisees, I have a feeling I'm
 going to have trouble getting through DD. 

Is there a REIT who will take the dive on a franchisee or am I going to have to hit up the open market? Alternatively is there a 100% LTV lender who will play ball here? I'm hitting DSCR but I'm nervous that i don't know if a lender will take the plunge with me. I really would rather not close than get an overpriced second and decimate my profit in fees etc etc. 

I know it's a difficult question. But I'm very out of my comfort zone. I've never produced with self funding before. In my mind there has to be a lender who would do a 15 ammo on a 5 year term based on my DSCR I just am not from that world.
[{"id": "dqbwfau", "text": "What State is the property in?", "replies": [{"id": "dqbz4z8", "text": "PA/NJ/NY\n40 minute + from Manhattan but still NYC MSA\nSuburban. 60k pop @ 5 miles. 12k @ 1 mile. All of them are hitting 30-50k VPD", "replies": [{"id": "dqc03ax", "text": "Thanks. If they were in Florida, I might have been able to offer some assistance. I recently divested in the last of my properties in NJ, and have no interest in any new business there, unless it's the deal of the century.\n\n", "replies": [{"id": "dqc09p1", "text": "I appreciate it. There's no shortage of buyers on the open market, I don't think. But did you ever see a reit buy a franchisee who wasn't a national franchisee?", "replies": [{"id": "dqc0g8c", "text": "Is there a reason you'd rather go REIT over open market? I would think, while it might be easier to do all three to an institutional buyer, you could probably get 50-75 bps to a private buyer (or two). Are these larger $ deals that would preclude private buyers?", "replies": [{"id": "dqc363q", "text": "Because I'm a 90 day close. While i can get an extension on some deals. I'd rather skip the step and just have someone with an appetite. I just don't know if it exists.  \n\nAlso. If I'm paying a broker, I'm taking the hit anyway. 3 points on gross if I'm flipping. It's a wash.\n\nAnd no. Not giant. Between 1.5MM to 3MM   \nIts just not reit material though I may be selling myself short. I think I need a large private buyer. I can find one I'm sure.", "replies": [], "depth": 6}], "depth": 5}, {"id": "dqcggo3", "text": "I just appraised a KFC that was under contract.  Fresh lease, I think 15 locations, no corporate guarantee.  Bought by a REIT.  150bps or so above corporate guaranteed.", "replies": [{"id": "dqchsg0", "text": "In so happy to read that! Is it NYSE traded? Could you (in a PM if you prefer) give me the name of the reit? I will find the correct contact from there... \nWhat was the final cap rate?", "replies": [{"id": "dqcj5g0", "text": "Pm me Monday as a reminder and I can look it up.", "replies": [{"id": "dqcjiui", "text": "I certainly will do. thanks!!", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dqc3aqa", "text": "I only do NNN Nationally. I can help but you need to PM me more info on franchisee info. If it\u2019s not a corporate guaranteed lease, understanding franchising strength is critical in making spread on the cap. We sell a ton of franchises burger kings, Taco Bell\u2019s, pretty much all of the major QSRs, your cap might not be as compressed as a corporate lease but you would be surprised. \n\nPM and I can walk you through it. ", "replies": [{"id": "dqc4mq3", "text": "PM Gringo. He's about to give you the right info. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dqd18cg", "text": "Sounds like good work. \nQuestion, are these occupied already with the regional franchisees, or are you buying vacant and leasing up?", "replies": [{"id": "dqd27jr", "text": "Buying vacant. I've brokered for them for a long time. So the leases were fairly easy to pull off.", "replies": [{"id": "dqd6wjn", "text": "I recently bought a 10.8 CAP occupied bank and flipped it for 7.25, similar numbers. My deals are pretty hard to find, if you can repetitively find vacant properties to do this, godspeed, and teach me!\nI don't know lenders that will finance 100%, but they might be out there, do you have 20-30% in case you don't find higher leverage? Try speaking with local banks and tell them what you're working with. Some will understand that you're buying discounted and might finance 80-90% of the purchase, and then later give you at the new valuation.\nYou might want to check out [STORE Capital](https://www.storecapital.com/), you'll need 10 year leases, and basically the tenant needs to continue reporting the property level P&amp;L to show profitability. I don't know how regional they get.\n \n", "replies": [{"id": "dqdbph4", "text": "That's funny you mention Store , I spoke to them. I think it depends on the deal. There's a few deals which they may like. \n\nHow do I do it? I've been a leasing agent since I was in diapers. I don't know anyone who was more patient. Deals aren't easy", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]