How to Buy and Find a High Cap Rate NNN Property?
Hi, my name is Alex Casablanca, Managing Broker at Casablanca Commercial Real Estate. We are a boutique brokerage firm based in Orlando, Florida specializing in selling NNN Investment Properties. Today I’m going to talk to you about How to Find and to Buy a High Cap Rate NNN Property.
With the current high-interest rate environment, most investors are looking to find and buy NNN Properties that offer a higher cap rate, usually 6% and above. Cap Rates for NNN Properties generally trend lower than short term interest rates, however, there are excellent opportunities in the market to buy a high quality high cap rate property.
Now the question is, but How to Find and to Buy a Higher Cap Rate NNN Property? Here are the 5 steps to find and to buy a higher cap rate nnn property.
- Define your risk appetite and cap rate expectations. Like in any other type of investment, the higher the yield, the higher the risk. Higher Cap rate NNN properties will come with an additional layer of risk, that you have to determine if you are willing to assume.
- Define your price range – Before venturing into looking for a High Cap Rate NNN Property you should define first your price target. The average price of a NNN property is between $2M – $3.5M. The better the area, the higher the price will be.
- Define the target location or locations that you are interested in. Most investors prefer tax free states such as FL and TX because their rental income will not be subject to state taxes. It is also important to have in mind that the better the location the lower the cap rate will be.
- Define the minimum years remaining on the lease you are willing to consider. The typical brand new NNN Property will come with a brand new lease of 15 – 20 years, while an existing property could have 10 years remaining on the lease. The fewer years remaining on the lease the higher the cap rate will be.
- Lastly and not least important, hire an experienced and knowledgeable NNN Buyer’s Broker that can help you navigate the complexities of the market and find the right NNN Property for you.
As your Buyer’s Broker, we represent you for Free since we get paid from the seller, so you get our expert advice and representation at no additional cost to you. In addition, we pay for our Buyer’s closing costs up to a maximum of $10k. This incentive will offset or cover completely the major Buyer’s closing costs expenses, such as title insurance, attorney’s fees, recording fees, among other.
At Casablanca, we specialize in representing NNN Buyers and 1031 Exchange Investors that are looking to invest in higher cap rate NNN properties. We can assist you finding and negotiating the best high cap rate NNN property, or any other NNN property according to your investment criteria and risk tolerance. We have the patience and expertise to work with our client at their own pace.
If you are looking for a high cap rate NNN property, you can contact me directly at 407-205-7570 or you can send me an email at [email protected]. Thank you very much for watching this video and I’m looking forward to being your broker in your next property acquisition.
Why Choosing to Work with Us as Your Buyer’s Broker?
- Free Buyer Representation, so you get our expert advice at no additional cost to you.
- Up to $10,000 credit for Buyer’s closing costs.
- We specialize in representing NNN Buyers and 1031 Exchange Investors. We represent your interests as a Buyer exclusively, not the Seller.
- We assist you with market research, property evaluation and selection, offer submissions and negotiations, due diligence and closing
- Extensive access to property listings through our network of broker colleagues, property owners and developers.
- Our main goal is to find the best property for you at the best price.
Send Me More Information Contact Us by Email Here Call Us at 407-205-7570
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Legal Disclaimer: Nothing contained in this video and written article should be interpreted as a recommendation or endorsement to purchase, sell, or invest in any specific property or security. The opinions expressed in this video by Alejandro (Alex) Casablanca are personal opinions based on experience as a practicing Licensed Real Estate Broker in Florida, and they do not constitute investment advice nor recommendations to buy or sell any property. Viewers should not rely on any statement made in this video and written article as a guarantee or representation that any particular property or investment strategy is a suitable investment. Opinions expressed in this video and written article are based on information available at the time of recording and are subject to change without notice. Prospective investors must conduct their own independent due diligence and consult with licensed financial, legal, and tax professionals prior to making any investment decision. Investment decisions should be based solely on each individual’s financial circumstances, objectives, and risk tolerance. The Triple Net real estate market is constantly changing and evolving. Changes in tenant financial condition, market conditions, demographics, technological innovation, monetary policy, consumer behavior, and broader economic trends may materially impact property value and performance. A tenant considered strong at the time of recording may experience financial distress in the future, which could adversely affect your investment. Neither Alejandro Casablanca nor Casablanca Commercial Real Estate LLC provide investment advice or assume any liability nor responsibility for any investment decisions made by viewers. For more information, read our YouTube Videos Legal Disclaimer here.