NNN Financing - Posted by Jim

Posted by Jim on September 18, 2009 at 16:03:52:

Thanks for your response. It is exactly what I was looking for. The information isn’t the best one could hope for, but it is reassuring that it still works in the right place. Thanks

NNN Financing - Posted by Jim

Posted by Jim on August 19, 2009 at 20:43:47:

Not sure if this is the right forum for this question, but here goes:

Can anyone tell me rules of thumb for finance rates for NNN (CTL) lease properties. For example, how many basis points over the 10y Treasury would the rate be for a property with 75%-95% LTV and with a term of 10-30 years amortized over thirty years. (I know, this question begs multiple answers; that’s why I asked it this way.)

I do not have any properties picked out yet but need the information to analyze prospective purchases.


Re: NNN Financing - Posted by PeterN

Posted by PeterN on September 18, 2009 at 03:09:27:

I was working on a Dollar General store with a brand new ten year lease and most lenders were in the 65 to 70% range. One local bank was willing to go up to 75% LTV. The rate was in the mid to high sixes and the term was 20-25 years.

It is extremely difficult to go out of your area and expect better LTVs at this time. In fact, most community banks are only lending with area residents and local projects. I have tried and tried with several local, regional and national banks for a commercial short sale opportunity out of state.

I have great credit, money in the bank, etc. I also have a commercial property that I am trying to sell, but the banker is too busy with problem loans to worry about a performing loan, as the buyer wants to finance with the same local bank since they already know the property. At least, I am in a position where I do not have to sell.

Good luck to you in your search. I would call at least ten lenders to find out the current landscape in your area. Commercial lending will not improve over at least the next 6 months, probably longer.

Re: NNN Financing - Posted by christopher w

Posted by christopher w on August 22, 2009 at 12:20:49:

I am working on a couple of commercial deals right now and I can tell you that I am not seeing ANYTHING over 80% right now and you better be a STRONG borrower to even get to 80%. 95% is a pipe dream.

Re: NNN Financing - Posted by James Harris

Posted by James Harris on August 22, 2009 at 24:07:15:

It’s not that the mutiple answers; as it is the question you’re asking may not be what any of us here can answer. Although many mortgage brokers may try to answer, and you will get many different answers. I think it’s safe to say that the question is best suit for someone that is a lender or broker.