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Updated over 2 years ago,
Creative Commercial Deal!
Investment Info:
Retail commercial investment investment.
Purchase price: $3,500,000
Off-market deal was presented to us through connections and relationships. Seller was heavily indebted having taken loans from loan sharks at high interest rates. We came in with capital to pay off the high-interest loans for a portion of the ownership. Financing was owner-carried and the plan is to cash-out refinance as we continue to fill up the vacancies.
What made you interested in investing in this type of deal?
The potential upside from the value-add.
How did you find this deal and how did you negotiate it?
The deal was found through networking and mutual connections.
How did you finance this deal?
Private money and owner-carry.
How did you add value to the deal?
Filling vacancies and optimizing management.
What was the outcome?
We're able to increase the value of the property by $2m and pay off our private money after a cash-out refinance.
Lessons learned? Challenges?
Be a problem solver to get deals done.