Trying to acquire a 24 unit bldg @ 1.6 mil n a NOI of 140k

I am trying to get into investing in commercial RE but it seems that the d.p. money is to steep. How can I overcome this? How do i make a Triple Net lease appealing?
In Buying Property - Asked by juanita b. - May 12, 2009
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Answer(s)

Paul S.
Broker/Agent
Glendora, CA

If you stick to 4 units (residential)or less the financing is much different. Once you go over 4 the downpayment requirement goes way up plus you run into a debt coverage ratio (DCR) calculation that may cause the downpayment to be higher. You might find owner financing that will allow a small down or maybe 0 down? Beware though, there is probably a reason the seller will take little or no money down.
I'm not sure what you are asking with your triple net question? Generally apartments are not NNN. NNN's are usually commercial (retail included), office or industrial. They are good vehicles if you don't want to "do" anything other than collect a check. You probably can't "create" increased value with a NNN other than factors that are beyond you control. They are very appealing to people that are tired of management of rentals because there is no management or expense with a NNN. Only a check for the rent.
If you would like more info about NNN investments contact me at paulsylvester@remax.net or 626 485-5163
Paul Sylvester,CCIM

May 13, 2009
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Tai L.
Broker/Agent
San Diego, CA

There are a lot of loan incentives out there. Let me know and I can refer you to somebody I know.

May 22, 2009
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