Question About Buying An Appleby's Store Site
I was contacted by a broker the other day who is helping list a number of Appleby store sites for sale.
The stores are all brand new and appear to be in very good, growing areas. They have 20 year triple net leases that are guarenteed by the franchisee. They have 7.5% increases built in every 5 years and are priced at a 7.5% CAP rate.
I know these are very solid deals, very safe, etc. Does anyone have experience with buying them? Does anyone know if you can find 100% financing at good rates that would be under the CAP rate?
These things looked to be priced in the 2.5 to 3 mil range and I'm sure there is not a lot of "wiggle room" in those prices. At that kind of price, I would need a big chunk of change for the downstroke that I don't have......would love to hear of lenders out there willing to finance 100% for 6-7%
Thanks for any input
Unless your credit is at an extremely high level most lenders wont do what you are asking. You may want to see what percentage of loan you can get and look into secondary lenders for the rest. Theoretically you might be able to zero out your payments with a low interest 1st and higher interest second for a couple of years until you make a profit, but it will get you in the door for just closing costs.
Usually these are for long term investments with a standard down payment that you make back, but as with any deal you should be able to negotiate out a better profit margin.
Good Luck,
Kyle