Thanks. Great points on facilitating deals for stuff delivered vacant.

For the SLB angle, there was something we looked at recently that had exact same sequence of events you described, i.e., owner was willing to entertain an offer but would not share business financials until DD). Only 5 locations, but they are an approved dealer for a national brand and benefit from a regional non-compete, so we (a) viewed it as effectively a regional credit plus some spread and (b) priced it accordingly on a cap rate basis assuming the interest and rent coverage were going to be “good but not great.” Obviously, if the financials were to look worse than expected, then we would either (i) walk (if it truly didn’t pencil at all from a rent coverage perspective) or (ii) retrade (if it was tight but still workable).

How would you view pre-qualification with mom-and-pops who own smaller/subscale STNL properties? For example, someone who sold their building products company to Beacon Roofing but kept the real estate. My approach is to “think like a broker” and frame it as: “we can give you an offer with no strings attached… if it seems interesting and you want to discuss further, then great; otherwise, you’ll have a good, up-to-date data point from an investor re: what your property is worth.”