Commercial Investors: Share Your Experience!

[Mindy Jensen]

Attention Commercial Investors!

We want to know more about you! What makes you tick? How'd you get started? Why did you choose Commercial over Residential?

We're looking to quote you in an upcoming article on the BiggerPockets Real Estate Blog about Commercial Real Estate.

If you'd like to contribute to the article, please answer these 3 questions: https://www.surveymonkey.com/r/FS5WCP6

[Account Closed]

I purchased my commercial property out of necessity. I have several businesses so when I purchased my first commercial property it was because I needed a warehouse and space for those businesses. I had and currently have a towing company and a car dealership. When I first started out I didn't need much space however as I grew (i.e. buying more cars to sell at a time) I needed more space. At first I used a small space that I rented however I soon outgrew that space. So I just rode around in commercial areas and I stumbled on a warehouse in the city sitting on 1.5 acres. I saw an old sign so I took down the number. At this time I was still a full time agent as well. So I called a few commercial agents and asked them about the property and the owner. All of the answers that I received, was don't call the owner he won't sell the property. Several of them had tried to purchase the property and were unsuccessful. I figured because the building was a little run down they may have lowballed the owner. Which I'm sure upset him and they were rejected. I learned years ago if you need or want something like a property never upset the owner. I also knew the value that the building would bring to me would far out weigh the cost that the owner wanted. I called and made him an offer. Which was full price by the way. And I closed in 30 days. There is a little side note. I didn't use bank financing. I never do. Important piece of info: I offered him full price which was $58k I put $1,000 down and had him hold a mortgage for 7 years at 5% for the balance of $57k with monthly payments of $500 a month. And a balloon payment of remaining balance after 7 years if property isn't paid off. I paid him $500 a month for 3 years and I paid off the property. Just so you know when I say I closed. My attorney closed on the property my corporation was placed on the deed and the owner held the first mortgage position. when I owner finance properties my corporations name always goes on the deed if the property was owned free and clear.