3 Commercial Office Condos

[Matt Litton]

Investment Info:

Office Space commercial investment investment.

Purchase price: $640,000

3 Commercial Office Condos purchased with traditional financing but 20% with Private Money Lender. Cash-Out Refinanced current commercial office condo to pay PML off. Have initial $27,000 in equity after appraisal. 1 Unit has tenant in place, the other 2 units only needed a deep cleaning and took 2 weeks to find tenants.

What made you interested in investing in this type of deal?

Commercial Offices are a commodity in my area. We knew we could rent quick and with it being commercial we could find good tenants.

How did you find this deal and how did you negotiate it?

Our Commercial Realtor

How did you finance this deal?

Traditional financing but the 20% down payment was PML.

How did you add value to the deal?

We raised the rents by $175/mo.

What was the outcome?

Homerun in our book, we didn't spend any of our money and we have cash flow and instant equity!

Lessons learned? Challenges?

Going the traditional financing route took a little longer than the seller wanted but he didn't have a choice once we had a contract on the properties.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes our Realtor was amazing.