All Forum Posts by: TK Agrawal

Great feedback!! Thank you who shared their wisdom  

Your comments helped me get some more info. 

1. Annual rent $34 k; NN lease till 2024 some time. No early termination clause. Priced at about $200 k  

2. NOI of about $25 k

3. Tenant runs a funeral house. 

4. Area seems nice, in commercial zone closer to big factories and stuff. C class building. Seems ideal for a warehouse or distribution center 

5, corner lot closer to a freeway 

My worry is : 1. Sustainability of the business of the tenant 2. If the existing tenant moves out before or on expiry of lease, would the next tenants worry about the place being a funeral house?

Another thing I want to know is importance of knowing a place well before investing specially for commercial non residential investments. I live in San Diego. It’s hard to find affordable deals with good cap rate. I want to invest outside San Diego. How should I go about it? 

I have some cash but I lack expertise and time 

Thanks

TK

Hello All,

I am a new investor getting started in REI.

A commercial property is in front of me in texas that offers about 12% cap rate. I live in California. The property is leased for next 5 years. At that cap rate property would pay for itself by the time current lease is over.

The deal seems to be too good true to me. I am ready to jump on it but I have apprehensions. Is it some kind of a trap? Am i missing something? 

I would really any advice you have for a newbie investor.

Regards

TK