Harder To Find NNN
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Harder To Find NNN (by Ray-N-Pa [PA]) Oct 11, 2021 7:57 AM
       Harder To Find NNN (by Richard [MI]) Oct 11, 2021 1:25 PM
       Harder To Find NNN (by WMH [NC]) Oct 11, 2021 2:11 PM
       Harder To Find NNN (by Ray-N-Pa [PA]) Oct 11, 2021 4:53 PM
       Harder To Find NNN (by Ray-N-Pa [PA]) Oct 11, 2021 4:53 PM
       Harder To Find NNN (by Ray-N-Pa [PA]) Oct 11, 2021 4:56 PM
       Harder To Find NNN (by 6x6 [TN]) Oct 11, 2021 5:12 PM
       Harder To Find NNN (by TJ [FL]) Oct 11, 2021 5:18 PM
       Harder To Find NNN (by Ray-N-Pa [PA]) Oct 11, 2021 9:02 PM
       Harder To Find NNN (by Oregon Woodsmoke [ID]) Oct 12, 2021 11:45 AM
       Harder To Find NNN (by Ray-N-Pa [PA]) Oct 12, 2021 6:32 PM
       Harder To Find NNN (by T [IN]) Oct 14, 2021 5:21 PM

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Harder To Find NNN (by Ray-N-Pa [PA]) Posted on: Oct 11, 2021 7:57 AM
Message:

It has been getting harder and harder to find NNN with a strong national name with Cap Rates of at least 6%.

I just did a national search looking for places that were within 700 miles of me. I am finding a whopping 37 places show up over all at my price point.

So what are these names that I would installing my trust in? Well Sears is one of them. Will they be around to complete the fours left on that lease?

That said, the Dollar General that I picked up in 2020 is worth $300,000 more for me doing absolutely nothing there. That isn't a good sign folks for things to come.

If larger fish in the sea get spooked too much, what will happen to the smaller ones like us?

--24.101.xxx.xxx




Harder To Find NNN (by Richard [MI]) Posted on: Oct 11, 2021 1:25 PM
Message:

I'm thinking that the stores that can be undercut or damaged by these shutdowns or replaced by online retailers like Amazon could be high risk. I'm looking for stuff like garages, maybe gas stations if the fuel situation ever stabilizes, and maybe utilities/companies that deal with solar or wind energy.

I know that those renewable energy options are not realistically going to replace current producers of energy, but I'm thinking that's where the govt is going to spend a LOT of our money, like it or not.

RV parks and trailer parks also seem like a good play as this fiasco continues. Millions are out of work or soon will be and they are going to start doubling up, living in RV's or mobile homes or all three.

--24.180.xx.xx




Harder To Find NNN (by WMH [NC]) Posted on: Oct 11, 2021 2:11 PM
Message:

Sears is dying. I would not put my money on them, I think they are actually in their death throws without a plan to recover. --50.82.xxx.xxx




Harder To Find NNN (by Ray-N-Pa [PA]) Posted on: Oct 11, 2021 4:53 PM
Message:

Concur WMH.

There just isn't much out there.

There is a Checkers burgers joint on the south side of central Chicago. Who wants a burger and a bullet?

There is the Sears in Missouri - I thought Sears was actually already gone.

There is a tire dealer but then there is always an EPA concern long term

Dollar Stores are available, but the lease renewal on one set is about 1.5 years out for upper 600's and another brand available with less than 5 years for 900,000

Nothing that safe -

If it is safer, the Cap Rates are below 5%

--24.101.xxx.xxx




Harder To Find NNN (by Ray-N-Pa [PA]) Posted on: Oct 11, 2021 4:53 PM
Message:

Concur WMH.

There just isn't much out there.

There is a Checkers burgers joint on the south side of central Chicago. Who wants a burger and a bullet?

There is the Sears in Missouri - I thought Sears was actually already gone.

There is a tire dealer but then there is always an EPA concern long term

Dollar Stores are available, but the lease renewal on one set is about 1.5 years out for upper 600's and another brand available with less than 5 years for 900,000

Nothing that safe -

If it is safer, the Cap Rates are below 5%

--24.101.xxx.xxx




Harder To Find NNN (by Ray-N-Pa [PA]) Posted on: Oct 11, 2021 4:56 PM
Message:

Concur WMH.

There just isn't much out there.

There is a Checkers burgers joint on the south side of central Chicago. Who wants a burger and a bullet?

There is the Sears in Missouri - I thought Sears was actually already gone.

There is a tire dealer but then there is always an EPA concern long term

Dollar Stores are available, but the lease renewal on one set is about 1.5 years out for upper 600's and another brand available with less than 5 years for 900,000

Nothing that safe -

If it is safer, the Cap Rates are below 5%

--24.101.xxx.xxx




Harder To Find NNN (by 6x6 [TN]) Posted on: Oct 11, 2021 5:12 PM
Message:

Following --73.120.xx.xxx




Harder To Find NNN (by TJ [FL]) Posted on: Oct 11, 2021 5:18 PM
Message:

Love the checkers burger comment! What is NNN? --76.242.xx.xxx




Harder To Find NNN (by Ray-N-Pa [PA]) Posted on: Oct 11, 2021 9:02 PM
Message:

NNN is triple Net leasing. The rents are lower, but the tenant pays the taxes, insurance and maintenance. This structure allows businesses to decorate and customize the building to suit the needs of the franchise --24.101.xxx.xxx




Harder To Find NNN (by Oregon Woodsmoke [ID]) Posted on: Oct 12, 2021 11:45 AM
Message:

I've never seen any NNN better than a Cap 3. The owner takes no responsibility, has no work to do except to cash checks and plenty of people are quite happy with a Cap 3 for doing nothing.

In fact, I've been looking at commercial for decades and never seen anything that was going to return any profit at all if you figure in the expenses that the seller forgot to mention.

I realize that PA is a lot different than the west coast, but Cap 6 or better is what you might get if you are doing some of the work and taking some risk. So, I am not surprised you are having a problem finding something to buy. --76.178.xxx.xxx




Harder To Find NNN (by Ray-N-Pa [PA]) Posted on: Oct 12, 2021 6:32 PM
Message:

You do understand that cap rates are based on not having any debt on the place. If you are wanting just 3%, I just searched loopnet and found over 220 different commercial properties with caprates greater than 3%. Of those there are 31 places offered as NNN with 10 of them being 6% or higher. These include Rite Aid and Family Dollar --24.101.xxx.xxx




Harder To Find NNN (by T [IN]) Posted on: Oct 14, 2021 5:21 PM
Message:

Ray, this the downside of federal reserve and biden policy. Too much money floating around. Last Feb I was able to get a small strip mall with DG with a 9.5% cap. Today, you just won't find that cap rate. I have been approached by 2 people asking to buy multi units buildings. Thinking it is easy $$$. If I was 60, I be cashing out and down sizing big down... --76.77.xxx.xxx



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