Which types of financing can I use for a Triple Net Lease property?

What types of financing can be used for NNN? List all possible please.
In Buying Property - Asked by Andrew M. - Jan 15, 2011
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Answer(s)

Gregory G.
Broker/Agent
San Francisco, CA

Depends on many factors.

Jan 17, 2011
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Rob B.
Chandler, AZ

Andrew....
Gregory's answer certainly cut to the chase. However, I honestly believe the people who ask their questions are looking for some solid guidance. Yes, it does depend on many factors, so what are some of those:
1. Let's start with the credit and creditability of the borrower? That is one of the fundamentals that a lender looks for.
2. Then what is the product type?
3. Where is the asset located?
4. Who are the tenant/s/? Is it a single tenant or multiple tenants? Are they credit tenants who will guarantee the lease?
5. What is the term of the lease?
6. What is the NOI on the lease, after appropriate reserves are applied?
7. What is the debt service coverage, after appropriate stress tests are applied?
These are but seven fundamental questions. The more positive the answers are the broader will be the lenders interested. It would be an excellent idea for you to review the seven standards and be prepared to answer them as completely as you can. Then contact a good mortgage banker or broker in your respective area to get your complete answer.
Good luck Andrew..... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Jan 17, 2011
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