Your first NNN deal
Start with a well-known national tenant and read the lease. Dollar General is rated BBB by S&P (Hanley, Jul 1, 2026). Confirm the grade in the filings. Focus on learning: underwriting, lender relationships, and property management basics.
100% concentration in one sector, one market, one tenant. Any single event could affect your entire portfolio.
Projected monthly NOI at each stage with 2% annual rent escalations
Start with essential retail ($500-750K) to build underwriting skills and broker relationships. Property #2 should be in a completely different sector - medical or industrial - acquired within 12-18 months. By Year 3, target a property in a new geographic market. Properties #4 and #5 should fill sector gaps and add geographic diversity. Always prioritize investment-grade tenants (BBB or higher) in the first 3 deals.
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Portfolio scenarios are hypothetical examples for educational purposes only and do not constitute investment advice. Actual returns, cap rates, and property values vary based on market conditions, financing terms, tenant credit, and property specifics. Consult qualified financial advisors and real estate attorneys before making investment decisions. Past performance does not guarantee future results.