In this video Joel, NNN Invest’s Principal Broker, explains what type of financial investment is needed to purchase a single net lease property. He gives example purchase prices along with the estimated down payment required from lenders, and the average cost of closing fees associated with the transaction.
What is the typical cost of a single-net property?
In most strong suburban and urban core locations, you’re probably going to purchase a property that is upwards of $2.5 million in price.
What type of down payment is required upfront?
Typically lenders want at least a 35% down payment, or more, to purchase these types of properties. This means that a down payment of $700,000-$800,000 is required to purchase with closing costs around $50,000 as well.
Are there any other costs required to purchase a single-net property?
Yes, closing costs are also required to purchase a single-net property. The closing costs cover the attorney fees, lender reports, capital market mortgage broker fee, title policy cost, and other additional closing cost fees for the property.