​

I am buying a $7 million property in Texas, and it is a 3 year buy and flip with a secure tenant and lease.

I have decided that I want to lower my exposure to one deal and buy some additional properties. So I am looking for some LPs to split the deal.

Any thoughts on how I find them. I expect a 10% annual return for the 3 years before flipping.

So I recently sold my first piece of Real Estate. I owned it for 20 years and made alot on the sale. Purchased for $1 million (ish) and sold for $2.6 million. But with a full depreciated building we have a $2.6 cap gains.

I planned for the capital gains portion of the sale and will not have any tax liability with the federal part of the sale. But I am also getting hit with a local tax on the sales proceeds. I think the local tax is 3% so it is not chump change.

Now I am wanting to make sure that I understand how local taxes work on the sale of RE. Is it based on the corporation's location or the properties location?

I am in the process of buying a property in Texas (a tax free state) to avoid the local tax issue in the future, but I am using the same corporation which is located in a taxable state.

I have been investing in NNN tenants for more than 30 years and thought this might be helpful.

When Underwriting a NNN tenant. The first thing you look at is the credit risk.

• AAA to AA- – Exceptional tenants
• A+ to A- – Excellent tenants.
• BBB+ to BBB- – Good, investment-grade tenants. This is the lowest investment-grade category.
• BB+ and below – Below investment grade ("junk"). These tenants generally require higher cap rates to compensate for increased risk.

Here is a list of the top credit tenants.

Examples of common NNN tenants

• 7-Eleven USA - A-
• Tractor Supply – A-
• AutoZone – BBB+
• Starbucks – BBB+
• McDonald's – BBB+
• Chipotle – BBB
• Sherwin-Williams – BBB
• CVS Health – BBB
• Walgreens Boots Alliance – BB (below investment grade)

The below chart shows the CAP rate that most of these are selling for as investments in 2026 but they change daily like the stock market. 7-11 historically traded around a 4 cap. went as high as a 5.6 cap for about 5 years and is just now starting to head back to below 5 cap. So these are big swings in valuation.

Credit order	Tenant	S&P credit	Approx. current NNN cap	Typical current range
1	7-Eleven, Inc.	A-	~5.0%	4.80–5.25%
1	Tractor Supply	A-	~6.1%	5.75–6.50%
3	AutoZone	BBB+	~5.6%	5.00–6.25%
3	Starbucks	BBB+	~5.6%	5.25–6.00%
3	McDonald's	BBB+	~4.5%	4.00–5.25%
6	Chipotle	BBB area	~5.2%	4.75–5.75%
6	Sherwin-Williams	BBB area	~5.9%	5.50–6.50%
6	CVS Health	BBB	~6.6%	6.00–7.25%
6	Dollar General	BBB	~6.8%	6.25–7.25%
10	Walgreens	Below IG	~7.5%	6.75–9.00%+
—	Wawa	no public rating	~5.0%	4.75–5.50%
—	QuickChek	no public rating	~5.5%*	5.0–6.0%*
—	Dunkin'	no public rating	~5.6%	5.25–6.25%
—	7 Brew	no public rating	~6.0%	5.50–6.75%
—	Family Dollar	no public rating	~8.8%	~8.0–9.5%+

Things to look at when buying.

• Cap rate / purchase price / NOI — What are we paying and what is the actual current yield?
• Remaining lease term — Exact years remaining at closing; 15–20 years is materially different from 8–10.
• Corporate guarantor — Exact legal entity guaranteeing the lease: parent corporation, subsidiary, franchisee, or none.
• Guarantor credit rating — S&P/Moody's/Fitch rating of the actual guarantor, not simply the brand on the building.
• Rent increases — Amount and timing of contractual bumps; calculate NOI at years 5, 10 and expected sale. This is how you can exit with a profit so this is important.
• Lease structure / landlord obligations — Absolute NNN vs. NNN/NN/ground lease; specifically roof, structure, HVAC, parking, taxes, insurance and environmental obligations.
• Store-level performance — Often not available.
• Real estate quality & replacement rent — Traffic, access, visibility, demographics, parcel/building size, nearby anchors and whether current rent is above or below market. Ask: What is this property worth if the tenant disappears? This is really important.
• Environmental & physical risk — Phase I; otherwise building/roof/HVAC/site condition.
• Exit economics & depreciation — Fuel Stations have bonus depreciation; others can get increased depreciation through cost seg analysis.

Has anyone underwritten Quicktrip (QT Gas Stations) as a tenant. Any understanding of the financial situation and quality of the tenant is appreciated.

I am looking to acquire a 7-11 gas station and just reviewed a deal and was really surprised at my brokers response.

In general, the 7-11s are trading around a 5.4 to 5.5 cap rate. They often have 11 to 12.5 years remaining on the leases. They bump the lease 5% to 10% every 5 years depending on the lease. These are NNN leases with no landlord responsibility.

One broker accelerates all of his listings that he brings to market to the next rental increase. And I find this ok if the increase is in January of the following year or within a 6 month window at closing, as long as they are going to credit you the extra dollars at closing.

One recent deal accelerated the rent to the next bump which is 18 months away. I told my broker that was absolutely nuts and I wasnt going to value the property based on the 2028 numbers.

His reply: "I am saying most buyers are as the seller provides a rent credit so the Cap Rate you agree to is actually the Cap for the next 6.5 years."

I really like my broker and we have done a lot of deals together. But this feels like a guy giving bad advise to get a deal done as compared to someone who is looking out for my best interest. Thoughts? And do you think buyers are really ever valuing a deal by accelerating rents18 months in advance on a 12 year lease?

I am looking to buy a 7-11 gas station with a 15 year lease. The property had a release that is being managed and the state wants to put a deed restriction to prevent residential use of the land. Should I just run the other direction or is this not a really big deal? The state will give a "no further action" once the deed restriction is in place. I believe the reason for the restriction is contamination in the water table.

I am looking at buying a corporate 7-11 NNN lease from a builder with 13 years remaining and I am looking for whatever I need to be careful of, lease terms, sneaky stuff, how well do they pay, benchmarks for a good store vs. a bad one, renewals of store lease options (this one was built in 2023 and has a 14 pump gas island). Tell me everything...the good, the bad, and the ugly.