Any investors ever made that transition from residential multi-family to commercial?
I started buying rental properties around three years ago and moved from 0 to 37 relatively fast. But given that everything in my properties is due to break Appliance wise and I have a multitude of turd tenants, seems like selling everything I have and using that as a down payment towards a CVS or a Dollar General or a handful of medical buildings would be more ideal. But given I don't know any mentors that made that transition, what is it I'm not thinking of that could be a snafu in that plan?

In the Rich Dad books, can't remember which one, one of the final chapters is about 1031 exchanging everything into a Walgreens. They painted that as being an ideal scenario. Which is why the thought has been in my head of making that happen.
[{"id": "gsh3giz", "text": "I went from SFH flips to commercial flips. It is a different world. You will need a real estate attorney, its much more difficult or risky to wing the contracts etc. Income/expenses are much chunkier and units can sit vacant for a long time depending on the market and unit desirability. \n\nIf you look at buying something vacant, you need to look at it with the broker who will lease it out for you, and make sure you're on the same page about what it'll take to lease it. If occupied, remaining term is important.\n\nNNN Walgreens etc trade at like a 4 cap or something stupid due to the income security. Personally I don't think those low caps are worth the risk but I understand some MF trades in that range too so YMMV.", "replies": [{"id": "gsh4ic9", "text": "A Walgreens NNN you\u2019re evaluating the cap rate against a comparable bond spread for them. It works if you buy enough of them (think like 40 Walgreens) that you can get a big ass credit facility leverage the shit out of the position a like 2.5% and clip spread between the 2.5 and the 4 you paid for it. Solid move but you need a lot of $$$ to make it work. You can also get super accretive renewals if you own a ton of one product because Walgreens is going to just ask you for a cash payment instead of true TI and they can get corporate borrowing at a cheaper rate (and you get a ton of term so it\u2019s win win).\n\nAlso some multi markets are trading sub 3 on trailing. Looking at you Phoenix! It\u2019s stupid and impossible to get multi deals done today so long as debt is so frigging cheap.", "replies": [{"id": "gsielkk", "text": "Good points... a STNL investment is more like a fixed income bond play underwritten against the credit of the tenant more than a real estate play. Low risk (usually) and correspondingly low reward. Unless maybe there\u2019s a covered land aspect to it. Coupled with the cap rate compression you mention though, it\u2019s not a bad place to park your capital. Though it all comes down to one\u2019s investment strategy - for me, clipping a coupon based the interest rate differential is not very interesting, but for certain long term \u201cinflation-neutral\u201d (via annual escalations) plays, I see why it can be appealing.", "replies": [{"id": "gsiwnrg", "text": "It\u2019s 100% a levered fixed income play. The tenants look at them as a way to borrow without floating public debt, once you own enough of them and are doing renewals with senior corporate team you\u2019re fixing lease rate as the DR for the TI contribution for the store where the contribution is just a check you\u2019re cutting to CVS, you\u2019re not actually doing any improvements. The way to make money in it is through leveraging the bejesus out of a decent sized position with a single operator and you can crank out an astronomical cash on cash return. I guess I should say I\u2019m not doing this as a personal investment my career has been in IB/HF/PE so it\u2019s been all within a fund.", "replies": [], "depth": 4}], "depth": 3}, {"id": "gt2qc3c", "text": "&gt;you can get a big ass credit facility leverage the shit out of the position a like 2.5% and clip spread between the 2.5 and the 4 you paid for it.\n\nAnd, if I'm actually a LifeCo or pension fund I may actually have a negative cost of capital.", "replies": [], "depth": 3}], "depth": 2}, {"id": "gsif4k5", "text": "Adding one point here: unless you REALLY trust the broker, discount 10-20% off of rental rates quoted by a broker. And be very conservative on budgeting for TI\u2019s and rent abatement/downtime. (Most) brokers will tell you whatever they need to say to get you to buy the deal.", "replies": [], "depth": 2}, {"id": "gsl59p1", "text": "Lots of great advice guys. Big reason for my post is I sell 6 of my units March 31st and proceeds should be around 100k; I'm very much undecided what I want to do with those proceeds so making the transition to CRE is high on my list.\n\nI've summarized most of your responses below:\n\n* Have a lot of holding costs set aside especially nowadays as unit can sit vacant a long time waiting for tenant.\n* If you are looking at vacant CRE - Look at it with the Broker that will lease it.\n* If it's not vacant - remaining term is important as well as cap rate and type of lease.\n* Pay attention to the cap rate, if it's low it needs to be NNN on established Franchise or something trendy in best part of town or both. Ideally tenant is brick and click friendly.\n* Learn about leases because they are NOT the same as Residential Leases. \n* As an owner of ONE Walgreens/CVS/Dollar General/Dollar Tree, don't expect to make a ton of cash. Leverage the ownership of one highly-lendable commercial business and roll that into multiple properties. \n* Befriend a Commercial RE Attorney, a  Commercial RE Broker, and Agents that are routinely finding tenants for Commercial leases. Don't trust numbers (profoma) given to me by CRE Broker as their main goal is to close the deal.\n\n&amp;#x200B;\n\nSome question I have:\n\n* What are some good youtubers/subreddits/audio books that pertain directly to Commercial Leases and CRE in general?\n* When I'm looking for lending on a commercial deal - how much will the credit of the tenant of the CRE play into it? If the property was vacant at time of lending - is lending lot more likely to fall through or be based upon how much down payment I bring to the table?\n* What do these acronyms mean? YMMV, STNL, DR &amp; TI, \n* I'd be curious to hear more about coupon clipping? It's the spread between what you rent CRE for and what you borrow from lender? Is there a rule of thumb for down payment amounts with CRE?\n* Why is low cap rate risky?", "replies": [{"id": "gslvdzy", "text": "Out of curiosity What market are you in that you\u2019re selling properties that I get to under $85k / unit based on your proceeds? \n\nHonestly just buy a larger multifamily property, it\u2019s going to be easier for you to manage and it won\u2019t have a ton of surprises. You also won\u2019t be able to buy much (anything) with $100k cash, but I guess that goes back to asking where you\u2019re located.", "replies": [{"id": "gslwg3q", "text": "I buy in Frankfort, Kentucky - properties there are disproportionately lower than the rest of Kentucky from what I can tell but rents are close to city prices. My first property was an 8 Plex of 1br/1ba for 282k if that tells you how cheap MF is there (MF sells the day it's listed around). \n\nThe smallest unit I own is a fourplex and each site is mostly 8 units. I mentioned the 100K in proceeds on March 31st because I'm considered selling everything else to give me around an 500K down payment towards something that could kick-start me into something with similar profits but less headaches. From what I can tell so far commercial would be similar profits but higher class of humans I'm dealing with.", "replies": [{"id": "gsm5y5x", "text": "Honestly stick to multi. You\u2019re in a small city, leasing velocity blows for office and retail right now and I have no idea what your industrial market looks like. I\u2019ve never invested in Frankfort but have had commercial deals in similar sized cities and it was a total nightmare because there\u2019s just not much demand. Also if it is the case that rents are similar to a louisvill but pricing is cheaper you\u2019ve got a good spread - stick with it. Some of the biggest personal financial statements I\u2019ve seen are from guys like you who own a ton of class c multifamily in places like Frankfort - you get solid cash returns and it\u2019s steady tenant base. I\u2019d recommend 2 things (1) if you can \u201cupscale\u201d to some larger buildings it will make life easier (2) if you can refinance and haven\u2019t done so yet look into a FNMA facility- you\u2019re small balance and likely meet the affordability requirements for the mission driven stuff so you may get preferential rate. Just rip proceeds and keep rolling it. Moving to commercial products in a tiny market Is an easy way to get burned. Hell the only deal I\u2019ve don\u2019t in KY was in Louisvill and I got burned on that because the market is slowwwww. Anyways good luck cheers", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "gsms30b", "text": "Can you clarify where your last question is coming from? I am confused because lower cap rates mean less risk (usually). By definition, an asset that trades at a \u201clow\u201d (relative to competitive assets) cap rate means that it\u2019s income is viewed as less risky than that of other assets. If Asset A trades at a 5% cap, and Asset B, a similar property, trades at a 6% cap, that is the market determining Asset B is riskier. They may be both throwing off $500k/year in NOI, but the risk associated with Asset B\u2019s $500k is greater than that of Asset A\u2019s. There\u2019s a nearly unlimited number of reasons for this, but in STNL it is probably due to tenant\u2019s credit. And for an investor to take on more risk, they must also stand to gain more reward, thus why Asset B sold at a higher cap rate (more NOI per purchase dollar).\n\nThough by \u201crisky\u201d you may be referring to stowaker\u2019s points about how it\u2019s basically \u201charder\u201d to make substantial money off of lower cap deals because the yields are so razor thin, and it\u2019s only if you can scale to a large enough portfolio does it make for really good returns (in the large credit STNL world he is experienced in).", "replies": [{"id": "gsvegqd", "text": "I think it was my original comment where I said a NNN Walgreens was too risky due to the cap rate. It may have been a poor choice of words, but what I mean is for a \"small time\" guy like myself or presumably OP, it is risky. Risky in that the tenant has a full time real estate legal team, they may try to push costs to you that turn your return negative, they may leave and not renew for a new build down the street, etc. And at that cap rate you are really challenged to sufficiently recover your investment before potentially having to re-lease the building. At such a low cap rate, other classes of investment (or real estate) are more appropriate IMO (for an individual investor). \n\nStoweker said it much better than me, but I've always viewed it as \"best access to capital financing equals best tenants and buildings\". Their money is so cheap the properties can be expensive, but my cost of capital is more expensive and therefore I can't risk/afford to pay those prices.", "replies": [{"id": "gswv9hy", "text": "Thanks for clarifying. That's a good point. \"Risk\" here has a more nuanced meaning than just the \"normal\" risks we associate with underwriting and doing sensitivity analysis. It's much harder to model the risks associated with dealing with a national credit tenant's legal team, for example.", "replies": [], "depth": 5}, {"id": "gt2q59j", "text": "Completely agree. \n\nFriend's dad has something like 100 NNNs. A mega bank tenant told him,  look this is how its going to be and if you don't like it let's be clear we have better lawyers than you. \n\nAlso, I just don't get this idea that grandpa is going to sell his 4 plex in SoCal and buy a Starbucks at $700-1000 a for in BFE Kentucky and somehow that's low risk mailbox money. That Sbux is worth $250 afoot maybe without Sbux as a tenant?\n\nSpeaking of grandpa, it seems grandpa's 1031 money is driving his decisions and the market is going to be inherently oversaturated and overpriced. \n\nAnyway, I just don't see it other than as a portfolio.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "gspmk1i", "text": "&gt; YMMV, STNL, DR &amp; TI\n\nYMMV - Your Mileage May Vary, meaning your experience may differ from that of the individual giving the advice  \nSTNL - Single Tenant Net Lease, think like a fast food restaurant, gas station, 7/11, etc. The property has a building and parking lot suitable for a single commercial tenant leasing it net of taxes, insurance, and maintenance. Owner is often responsible only for the roof.  \nDR - ??? I can't find the comment in the thread that uses this  \nTI - Tenant Improvements, money paid or improvements made by the landlord at the start of the tenancy to customize the space to the tenants' needs. Another lever other than lease length, rent price, etc. that one party or the other can pull to get what they want on another term of the lease.", "replies": [{"id": "gsyp2hj", "text": "Dr is discount rate. I used it in context of how lease payments are calculated for NNN tenants as a function of the TI contribution", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gsh3pgu", "text": "Buying MOBs is a nightmare at your price point - you\u2019d be looking at off campus which doesn\u2019t have the sticky tenant base you\u2019d expect - the anchor has you by the balls on a renewal and if they blow you\u2019ll lose your other tenants. Those things are eco systems like a shopping center but with much much higher TI. Would avoid as an individual investors. \n\nAs it pertains to NNN, I know a lot of people on this forum are in it, and it\u2019s a great product, but the caveat is that it only works if you can amass scale to financially engineer returns and get preferential treatment on renewals. Sure you can coupon clip on it but your best returns are to financially engineer the shit out of it since you\u2019re essentially making money on the yield spread. \n\nHonestly my advice is to just upscale your portfolio - prune what sounds like a bunch of small buildings and roll it into buying fewer larger properties that have enough collective cash flow to cover maintenance issues. You\u2019ll also have scale to higher a property manager to deal with a lot of the day to day. Anyways my $0.02 good luck. Just don\u2019t hop head first into something you aren\u2019t familiar with it\u2019s a great way to get pantsed.", "replies": [{"id": "gsj680m", "text": "I wish I understood what you\u2019re talking about, hahaha. Seriously, I\u2019m so dumb at commercial real estate strategies that I don\u2019t understand what you\u2019re talking about.\n*off to Google I go*", "replies": [{"id": "gsk8her", "text": "Medical office building that isn't part of a hospital campus will have higher than expected turnover/vacancy. Stickiness is how likely a tenant is to stick around (get it?).\n\nThe anchor tenant is the tenant that drives a lot of traffic to the property. That position gives them a lot of power in lease negotiations.\n\nIn a multi tenant situation, your tenants shouldn't compete with each other. If the large doctor's office leaves, the pharmacy next door might be in trouble. If one tenant leaving causes others to leave, you can run into a high vacancy situation fast and it'll be difficult to re-lease any individual unit without re-leasing the others.\n\nTenants improvements allowance - payments the landlord makes to customize a space to a tenant's needs - are higher in medical office than in shopping centers.\n\nNNN (aka triple net leasing) puts responsibility for taxes, insurance, maintenance, etc (often, everything except the roof) on the tenant. At that point, you're collecting a spread between your rent income and your mortgage payments. The coupon clipping is that spread. e.g. rent out at a 5cap and borrow at 3% to collect a 2% spread on the bank's money plus a full 5% on your own downpayment. You need scale to get the low interest rates for that spread to be worthwhile.\n\nI'm not sure if preferential treatment on renewals refers to lease renewals or to loan renewals/extensions/refinances, but either way, you need to be a big dog to have good negotiating power when these things roll around (every 5 years or so, maybe 3 years on leases, maybe 10 years on loans).", "replies": [{"id": "gskn0hz", "text": "Thanks. Was referring to negotiating renewals on NNN, goal is to get a 20 year term but you\u2019re only getting that if you own a whole bunch of these things. The ideal flip on NNN is to build a wholesale portfolio have negotiating power than flip the whole thing with a ton of term.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gsh77fc", "text": "I\u2019ve personally sold all of my multi-family and most of my single family in exchange for commercial.  I prefer having one tenant who pays $7500/mo to five tenants paying $1500/mo or even ten multi-family tenants paying $750/mo.  Commercial properties are much easier to manage, but I sometimes end up with long vacancies.  I\u2019m just finishing up a lease for one property that has been vacant for over 2 years and my taxes and insurance is over $20k per year on that one.", "replies": [{"id": "gsikdsl", "text": "I would never have a one tenant building...of any kind.", "replies": [{"id": "gsisogf", "text": "I can understand why you might feel that way, but there are pros and cons to single tenant properties.  I own a shopping center, which offers more financial security, but the downside is that I have to maintain the common area (trash, lighting, general maintenance, etc).  With my single tenant properties, the tenant maintains everything because they are the only ones using the property.  Obviously the downside is that I have no income if I lose the tenant.", "replies": [{"id": "gsjg8m0", "text": "I agree that there are pros and cons. It depends on your situation and business plan. If you are a handyman and have a good employee, multi-family can be great and possibly more profitable. \nI have one big commercial building and it works perfect for me. It did sit vacant for about 8 months which was tough but then I found the perfect tenant. I am 3.5 years into a 5 year lease and haven\u2019t had one single problem. Just collect the checks every month. They pay all the taxes and maintain the building really well. I am very busy at my day to day job so this is the perfect situation for ME.", "replies": [], "depth": 4}, {"id": "gsl0omk", "text": "My buildings have common areas as well, but if one tenant leaves, the other 15 or 20 carry the load quite nicely.\n\nI know a lot of folks who have 100,000 sf buildings with one tenant and have had for decades.  Successfully.\n\nLarge spaces mandate lower rents per sf, more landlord participation in TI's and put more risk on them as well.\n\nConversely, paradoxically, investors prefer large national tenants and shun owners who have more local, smaller ones.\n\nMine are all commercial office and industrial.  Wouldn't touch MF today if I was given the properties.\n\nI'll take the higher margins and lower risks every day :)", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gshh0mv", "text": "Dude don\u2019t do that.  MFR way better long play.  Malls are dying. Commercial cool if best spot in town, otherwise I wouldn\u2019t want to be near it.", "replies": [], "depth": 1}, {"id": "gshldpf", "text": "I\u2019ve seen plenty make the transition, but know your ins and outs of whatever sector you\u2019re transitioning to. Some of those passive net leases investments can have their own hidden risks, skeletons, and considerations that need to be factored in. Especially the drug store leases and dollar general deals in tertiary markets.", "replies": [], "depth": 1}, {"id": "gshnsk7", "text": "My partners and I have helped a lot of our clients make this transition. We look at it as another way to diversify your portfolio. We are located in Nebraska and have helped clients do 1031 exchange on DG, fast food, office building, medical and more.", "replies": [], "depth": 1}, {"id": "gshu1gf", "text": "I\u2019d say I made the transition. SFR some debt some cash. One short term rental. Sold them all and into 75k sq ft in two warehouses. \n\nReally happy with the shift to NNN leasing. Also a commercial real estate attorney but it only helped like 10% of the issues!", "replies": [], "depth": 1}, {"id": "gsi3mh7", "text": "Jeez, some of the comments here are absolutely ridiculous. CRE is more nuanced than just \"malls\" and \"cool spots\". Industrial real estate for example is absolutely booming right now because of the growth in e-commerce, spurring demand for logistics real estate near key transportation nodes. Similarly, there are opportunities to pick up distressed office buildings below replacement costs in select markets. I know a fellow who picked up a Class-A-/B+ office building with a great tenant at a 10 CAP in this market. People who say ridiculous things like \"malls\" are dead as a way of generalizing retail obviously have no clue what they're talking about. The Amazon effect is real and it is transforming the retail experience. Certain tenants are absolutely going bankrupt because of this. Yet, on the other hand, tenants that have been able to merge the retail and online experience together - also referred to as 'brick and click's - have been able to weather the storm. That being said, Retail is a notoriously difficult asset class with complicated lease structures and higher Tenant Improvement allowances. However, this actually can advantageous because it deters mom and pop apartment investors who are not familiar with NNN-leases, percentage rent, restrictive covenants, etc.  \n\nAlthough I cannot speak about directly owning property as a landlord since I have only passively invested in CRE, several professional operators tell me that leasing to a business or professional (i.e. doctor, dentist) is much more desirable and causes fewer headaches. These spaces are used primarily for business purposes and the tenant is considerably more intelligent than something you'd find in some run-down Class D apartment complex.  \n\nIf I were you, I would connect with a knowledgeable CRE broker that specializes in NNN-properties, an attorney that specializes in CRE, and lastly a leasing broker familiar with the market. Get help and avoid winging it. It's easy to F things up real quick in CRE.", "replies": [{"id": "gsivd0r", "text": "I don\u2019t think anyone made an argument that malls or cool stuff makes up CRE? Most of the industry is pretty neat and potatoes. W/r/t your comment on office below replacement cost I\u2019d be shocked if anyone is paying above cost in any market right now - only seeing that in industrial and multi in some select smile markets right now. It\u2019s stupid but it\u2019s happening. \n\nAlso to your point on leasing to doctors and dentists they as a group are a fucking pain in the ass to ink a lease with; not to generalize but they think they\u2019re the smartest people in the universe and know how to write a lease even though it\u2019s way outside their wheelhouse. They also like to play investor and get cut into deals. (1) you\u2019re not the smartest person in the room dr sometimes your counterparty has 3 more Ivy League degrees than you (2) their is no fucking way you\u2019re getting cut into a sliver of a JV. For your 2,000 SF clinic. \n\nThe easiest tenants to get a lease done with are total non-institutional/ non credit retail tenants. Also class d apartment tenants are super easy they\u2019re signing a form lease and if you evict them they have personally guaranteed the rent which is going to collections so they pay every month. Worst apartment collections through COVID have been in class A towers due to overlevered tenants and corporate providers who didn\u2019t pay.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gsifeyn", "text": "Our family business has done this and we are SUPER happy about it.\n\nSome points:\n\n*  triple-net isn't always triple-net \n\n*  MUCH more complicated lease documents\n\n*  You need to have a better understanding of finance and business.  \n\n*  You need to have a solid lending relationship\n\n*  Have a good agent that you can build a long-tern relationship with.  I can give you a name.\n\n*  Have a real estate attorney that can get things done instead of racking up hours.  You might need to renegotiate a lease in the future\n\nwww.loopnet.com is a fun site to check out opportunities", "replies": [{"id": "gsl82nc", "text": "Loopnet is like zillow but with cashflow.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gsik3xv", "text": "1980: First house. Sold.\n\n1986: Two condos. Sold.\n\n1989: Five condos. Sold.\n\n1990: Bought first office for myself (dumpy old place needing a *LOT* of TLC), bought a bit larger than I needed, also rented out to others.  Sold.\n\n2013: Bought much larger multi tenant office building with additional land.  Probably 4 years away from developing additional land.\n\nPretty happy with this position...probably won't do much more than develop existing.", "replies": [], "depth": 1}, {"id": "gsiwuyl", "text": "Perhaps you can trim your residential portfolio and try to move upmarket.  Or, with the proceeds look into a couple of mixed use (retail/resi or com/resi) to get your feet wet.\n\nWith retail/commercial properties, you'll have to have fair amount of $ on the sideline for TI/LC/CapEx (or your lender will require lockbox/cash sweep for future leasing costs) if you want to own Class B+ or higher.  You could try to save $ with low TI allowance but you'll either have the space sitting vacant longer than you want or have to settle with lower rent or unsuitable/nonviable tenant.  Especially for retail properties, you must have a good leasing agent who understands tenant synergies, competitive properties, demographics, local retail trade area/trends to help you attract/retain(or reposition) your retail.", "replies": [], "depth": 1}, {"id": "gsiytqa", "text": "I bought 1 SFH and went right to commercial. Never looked back", "replies": [], "depth": 1}, {"id": "gsjmmfw", "text": "Class B strip mall &gt;&gt; multi-family \n\nIf being lower touch is a priority. Commercial is easier to scale, IMO.", "replies": [], "depth": 1}, {"id": "gskoo9m", "text": "I have 4 SFH, 2 MFH, and 2 commercial properties. \n\nI bought the first commercial soon after starting my journey with residential. It\u2019s a single tenant small warehouse with a daycare built out inside and I bought it primarily for the lease, which was landlord-friendly and had 2.5 years remaining.\n\nI wanted to experience NNN life and learn more about commercial, having no background or experience prior.\n\nAbout a year later I bought a multi-tenant office building where I occupy 25% and lease the rest. \n\nOverall, the two commercial properties have been a lot more work than my residential ones.\n\nThe NNN building has a difficult tenant who requires much more attention and time than I was expecting. The whole point of NNN is supposed to be low maintenance and it hasn\u2019t really been. Having said that, it\u2019s my best performing property by the numbers.\n\nThe office building is from 1890 and needs a lot of work and care. The pandemic slowed leasing activity for a vacancy there right as I was investing in some big ticket improvements so it has felt difficult so far but things are improving now.\n\nDespite the challenges my commercial properties are overall better investments than my residential ones and I plan to focus on commercial going forward. I\u2019m even looking at some more office despite the WFH stuff.", "replies": [], "depth": 1}, {"id": "gslfym0", "text": "My vote is to skip Single Tenant centers (Cap rates are too low for good ones) and start with small multi-tenant, atleast 2-3 tenants if possible. My advice is to find a trusted partner (family or close friend) and shoot for a higer-priced/better quality strip center (class A or B) with atleast one anchor or name brand tenant. I own 3 centers between DFW and Houston and they have generally done well. All are shdow to a big-box grocery or a major pharmacy. My average cash flow per year for last 5 yrs has been \\~12%. Some key points:\n\n\\- I make it a point to visit the location and nearby neighborhood or get someone to visit and send me pictures/videos before I submit an LOI - google-view is not sufficient. \n\n\\- Get a good real estate attorney to review the contract, Title and leases. Money well spent..", "replies": [], "depth": 1}, {"id": "gt3kc65", "text": "How about liquidating some of your portfolio, to keep a level of diversification and comfort, while using the proceeds to partner with an experienced investor who can show you the ropes on a NNN deal?\n\nI've been involved in over $1 Billion in transactions and managed over 1 Million SF. Been a mentor for years, so I know a few people. If interested, message me. I'm thinking of a few people in Lexington and Cincinnati who might be interested. Either way, it can't hurt to talk and have in person connections nearby.", "replies": [{"id": "gt3pqkf", "text": "Scenario you just described would be ideal for me. Keeping my eyes peeled for 4-8 more units right now but also leaning towards commercial. Also thinking towards the end of this year interest rates are going to climb drastically but I'm hoping to be fairly liquid at that time without having money in cash or bonds.", "replies": [], "depth": 2}], "depth": 1}]