Buying a NNN property requires more than reviewing the advertised cap rate. Before moving forward, evaluate the tenant’s credit and guarantor, years remaining on the lease, rent escalations, renewal options, and responsibility for the roof and structure. Study the location, traffic, and potential to re-lease the property if needed. Then review financing terms and have qualified real estate attorneys and CPAs examine the documents and financial assumptions. Save this checklist for your next review. Educational only.
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