Triple net leases and buying commercial
So I finally got around to getting my Solo 401k established and have been looking for quality commercial property. I only have experience in multi family and residential so I have been going slow. There seems to be some decent commercial foreclosures available in my market.
I've read a ton of posts about the value of NNN (thank you Joel Owens:) and the typical 5% cap with a corp client is not what I am looking for. I've seen some decent smaller deals such as a newer 2500 sq foot dental office Class A 2005 built in Class A neighborhood. Sold in 2006 for $600k, refinanced for $900k in 2007 bank owned listed at $225k and I have an offer pending acceptance at $165k. Rents for such spaces command $1.5/sq foot so the cash flow should be decent with eye on future cap appreciation.
Question for all you commercial investors ... what do the good deals look like? Please share some of the better deals you have made and some that did not work out so well. What is your main source of finding these deals? What are some of the major pitfalls to look for in DD?? Look forward to hearing from you.