Needed NNN EXPERT to help

4 Replies

 Thank you for your response 

Interested in buying. 

1.I'm not understanding this statement in the property information “reporting more than $2,300,000 in 2018 of which they
pay a significant percentage rent in addition to their base rent."

2.what kind of things should I look for & ask for before seeing the property? 

Updated almost 2 years ago

@nate o  Thank you for your response  Interested in buying.  1.I'm not understanding this statement in the property information “reporting more than $2,300,000 in 2018 of which they pay a significant percentage rent in addition to their base rent." 2.what kind of things should I look for & ask for before seeing the property? 

@Richard Merkuris  the comment “reporting more than $2,300,000 in 2018 of which they pay a significant percentage rent in addition to their base rent." means the Tenant did more than $2.3m in sales/business last year and they pay the landlord a percentage of that business as additional rent.

You want to see the total income from the property and the total expenses to operate the property. If it's NN or NNN much of the expenses will be passed thru to the Tenant but you still want to see what it costs to operate.  You also want to see the rent roll so you know how much term is left on the leases.  You want to determine the likelihood of the tenant renewing when their lease comes to term and where the current lease rate is compared to current market, and what you anticipate current market may be when the lease comes to term.

All the Best!

Wren

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