What are the downsides of a triple net investment and what can/should you leverage?

I'm looking at several ideas, preferring corporate backed nnn leases, but still not sure of the risks etc. Is there a better, somewhat safe investment opportunity to look at...that will retain or grow initial capital while providing a decent return? Need help! Have about 800K incoming 1031 exchange and need to find the right home(s). Thanks for any advice!
In Buying Property - Asked by Chris H. - Jan 7, 2009
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Answer(s)

Edward J.
Broker/Agent
Atlanta, GA

Chris,
Corporate backed NNN leases are considered stable investments. You have to consider
1) the strength of the tenant that is guaranteeing the lease
2. the strength of the demand and competition at the location you are considering
3. The site desirability, functionality and access in case you had to find another tenant
4. What the competing rents are in the market and
5. The rent/revenue ratio of the franchise.
I am seeing require 20 to 25 % down depending upon the strength of the franchise and the borrower.
Let me know if you need any assistance with your search for a replacement property.

Jan 8, 2009
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Chris H.
Tulsa, OK

Thanks Edward J. Please email me your contact info at cchuntley1@cox.net Thanks, Chris

Jan 8, 2009
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Dave B.
Broker/Agent
Fort Lauderdale, FL

Hi Chris
Edward has good info , but try to get a corperate backed deal over a franchise backed deal. with at lease B+ credit rating.
dave.boothe@marcusmillichap.com
954 245-3437
feel free to call with any questions

Feb 19, 2009
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