Newbie, Trying To Find Info On NNN Properties
Hey everyone, I just recently signed up, seems to be a pretty cool site. I was wondering if anyone knows of a good resource (book, website, other...) that I might be able to use to learn more about the ins/outs of NNN properties.
I'm very interested, but would like to learn more about the process, where to find deals, how much $$ do you need upfront, and other general info for a beginner...
Thanks in advance 
I cant offer you a book, but I can telkl you the following.
Its a marriage between the strength of the tenant, and your credit score. Also your down payment depends on the financing available at the time. NNN's are an easy safe way to make money though its just a matter of getting your loan lower than the tenants rents. Your main pitfall is the tenants going out of business, not many will fall like Ames, or Hechingers but it does happen. Check into financing and see what you can get and also do whatever it takes to raise your credit to the absolute highest first (shoot for 800-850), then make your play.
Good Luck,
Kyle
Kyle,
Thanks for the valuable feedback.
Are you aware of any listings (or types) of
NNN properties that are below $500K.
I'm attempting to get my foot in the door, but it seems as though most NNN properties start out at about $750,000.
Or might you suggest looking into some other type of commercial property as a start?
I deal with commercial lenders, brokers, and investor groups on a regular basis. The path you are looking into is complex, grey and not very well exposed.
There is a book titled "Commercial Investments and How to Make (or Analyize) Them". Look into it.
You really need to have 20% to do a deal in commercial finance. This may be flexible in some regards if you have experience in dealing with the type of propertty in question.
When dealing with NNN, you are looking at the tenant. They are more important than the borrower. The borrower in question still is of importance but it is greatly reduced.
What is your objective when getting involved with commercial real estate?
Respectfully,
Phil
Phillip Herrejon
President of the Chicago Real Estate Investment Club
Investment Property Finance Consultant
312.375.7132
GFous introduced me to a great website:
Hey Pherrejon, Thanks for the feed back! By the way, I tried to find that book on Amazon, and I couldn't find it. I tried different variations of the title, but nothing popped up that seemed to fit the description. Where have you seen it for sale?
Some of my objectives are to have a pretty steady cashflow, while having less headaches (residential tenents).
I realize from doing research, that there doesn't seem to be a wealth of published information on the subject matter. If you could provide further assistance in tracking down the book you suggested, I'd greatly appreciate it.
-Donovan
The actual name of the book is "Commercial Real Estate Analysis and Investments"
Authored by David M. Geltner, Norman G. Miller
Amazon had it listed today
List Price: $109.95
4 used & new from $88.00
I read this book for the first time four or five years ago. It is a straight forward no non-sense book, just like how I like to do business. Read it twice, make sure you understand the concepts before you go on the next chapter. It builds knowledge well. By reading that book when I first became involved in real estate I became very ware of alot of the variables in the commercial real estate. I used it as a guide for $10's of millions of dollars in deals that I have worked on.
If you want to get involved with commercial real estate, get the book. You must become fluent in your niche. In order to do so you must get unbiased information and be able to reference it as a guide. Sure you could pick up a few things here and there on TCI's forums, but this will help you.
Short Story:
I knew the book was a good read a few years later when I was working at the investment bank structuring private placements and strategic initiatives for our highly coveted clients. The Managing Director I work alongside had the book on his shelf in his office. We started talking one day about commercial real estate investments and the pro’s and con’s thereof. He came from a family of wealth and privilege and very well off. Stated another way, his father did business with Michael Miken, the high yield “Junk bond” kind of the world. He stated that he made a very good fortune from commercial real estate and that book was must have in his library.
Remember this world is run by those who can get the best information and those who can get the best deals. But that information is only valuable to those to who know how to use that information. Ever met a rich idiot or genius waiter? Putting two and two together is what makes or breaks your level of success. I have a friend who is not all that smart about a lot of things, but he is really on it with a few that make a difference. He owns a few good pieces of real estate and a million dollar business. This is a good start for him, he is only 24 years old.
Real estate is just like law and medicine. There are so many areas to practice in. So many methods to apply. And only your imagination (and the law) to limit your ability to perform. I do not know what resources you are working with, but you need to determine where you want to be and make what you have now work for you. I personally know a few people who came to this country when they were young (less than 30 y.o.) and are now “DECA-Millionaires”. It is not about what you have, it all about your passion to get what you genuinely want.
You want some passive income with steady cash flow, go buy a small strip center and have a management firm take care of it for you. If you want to build “real” wealth, doing this is like a kiss of death. You might end up with returns of 5% a year. The firms that make good money in the business work with cash, leverage and good insider information on where to buy, sell and acquire the “right’ parcel before “Joe Public” is ever aware that in five years a particular spot will be a gold mine shortly. I can go on and on, but I have allot of client files I have to work on tonight.
Click the link below to see more product information. Purchase the following item by December 7, 2003 & You'll receive an additional 10% discount on Amazon's already low price.:
Commercial Real Estate Analysis and Investments
by David M. Geltner, Norman G. Miller ; Hardcover
http://www.amazon.com/exec/obidos/stl/3ED0W2HVJUI9N/102-6351362-3296939
The reviews on that book are not good. Here are some of them
Commercial Real Estate Analysis and Investments > Customer Review #1:
--------------------------------------------------------------------------------
Worthless!
My rating is based on two criteria: (1) The authors cant write readable prose. They do not even know how to constuct a coherent paragraph, let alone build a coherent full-bodied narrative. Mostly academic jargon. (2) The authors say that you can view commercial real estate from many perspectives, but they emphasize financial economics. Unfortunately, anyone who restricts their view to fin econ cannot make sensible ****Must Reach Freshman Investor status before posting URL's***his perspective renders the book useless. Its clear the authors have no practical knowledge of commercial real estate -- or if they do theyre keeping it a secret. Written primarily to impress their buddies in university econ and finance departments.
--------------------------------------------------------------------------------
Commercial Real Estate Analysis and Investments > Customer Review #2:
--------------------------------------------------------------------------------
Look how smart we are!
This may be the worst book on real estate or mortgage markets that I have ever seen. The authors seem to be saying "Look how smart we are!" I have an MBA from University of Chicago and much of the book is a bad rephrasing of inroductory corporate finance. My book for the real estate class at University of Chicago was by Bruggman (?) and Fisher; although that book will not win any awards, it is vastly superior. This book could easily lose 1/2 of its contents. Dont waste your money.
--------------------------------------------------------------------------------
Commercial Real Estate Analysis and Investments > Customer Review #3:
--------------------------------------------------------------------------------
Disappointingly Complex
This book is unusable on its own. As a textbook in an advanced real estate course, with an inspired professor, this book would probably rate five stars. As a book from which a reader can extract useable information, this book is one star at best. For example, Internal Rate of Return cant be found in the index. By leafing through the book, you can find a brief explanation of the concept, which is far too complex and incomplete for an intelligent reader to use. I am a real estate developer with 30 years experience. I have bookshelves full of real estate books. This one goes to the bottom of the pile. Save your money.
[ Edited by hardcore on Date 01/20/2004 ][ Edited by hardcore on Date 01/20/2004 ]
I have the book and have used every tattered page of it while completing my MBA in RE at the University of Cincinnati. Miller and Geltner were great as was Jim Clayton (a new but great professor at the time). It was my first class with Dr. Miller that really turned me on to Real Estate - in fact I wasn't even an RE major at the time, I just sat in on one of his classes and decided that day to switch.
I finished my degree 2 years ago, but am just now getting ready to close my first deal ($540K commercial property) as I didn't get serious about investing until recently.
Let me tell you, I am scared and excited but Drs. Geltner, Miller, and Clayton have done much to ease my mind.
I am new to this site, but plan to be around for awhile (lots of great info). This is my first post here but I just had to comment on the book and its authors (they were truly wonderful to me!).
Thanks,
Susan