Why you have to be extremely careful investing in these Dollar General stores. Dollar General is a sold credit tenant, that is not the issue, the issue is that many of these deals are located in the middle of nowhere and the residual value after the tenant lease term is up may be a lot less than you paid! Yes, there are markets that are better for long term land appreciations but the units in small markets have to be heavily scrutinized. The other issue with these deals is that they are not true NNN deals and many are NN, which mean the landlord is responsible for roof, structure and in some cases the parking lot maintenance. In addition to that, many of these deals are built with metal buildings which is never ideal for long term appreciations and are cheap construction. This deal in Austin is interesting because the Austin market, and Texas more specifically. is doing good and you would look at the deal and think it’s a great opportunity, and it may be just that but, you have to be careful and look under the hood on this deal. You need to figure out how their sales are doing before you pull the trigger on this, or you could be stuck with a building that will be hard to lease in my opinion. In my opinion this site could make a food daycare location or some other use such as medical but it’s a poor site for retail and is not anchored or heavily trafficked. Also note, that sites that are near golf courses basically have a demographic hole much like a lake or ocean, while it’s great for residential uses, commercial is negatively affected by lack of rooftops and traffic which drive retail. I was impressed with the new gas station development across the street but that does not help the Dollar General, but the Dollar General helps the gas station and may ever take some customers away. This deal relies on the Dollar General Sales. let the 1031doctor review you next NNN investment. Serving clients nationwide since 1986. www.1031doctor.com or you can email jordan@1031doctor.com.7:39Now playing
Why Dollar Generals have to be heavily scrutinized??
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No views24 minutes agoMy “red flags” for Family Dollar and Dollar Generals. Austin Texas site has some issues to review before investing.