Washington Commercial Investment

[Joshua Meeks]

Investment Info:

Office Space commercial investment investment.

Purchase price: $440,000
Cash invested: $180,000

Commercial property. Purchased for 440k, invested additional capital of 180k and refinanced. $625k invested. Valued at $800
Acquired for real estate office building, leased downstairs to a separate business.

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

We needed a space for our real estate team to grow into for an expansion office.

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

My friend Jonathan works primarily in commercial and he reached out with the property information.

How did you finance this deal?

SBA 10% Down Commercial Loan with additional COVID incentives on payments on terms

How did you add value to the deal?

Renovated the building inside and out. $80,000 into exterior and landscaping and around $100,000 in interior renovations.
Occupied the upstairs and leased out the downstairs to a massage practice.

What was the outcome?

Cash flow of around $1,600 in addition to provide a subsidized rent for my real estate team. Refinanced to pull back out cash invested with a conservative BPO of $800,000. Value is currently around $900,000, creating around $275,000 in equity and growing cash flow.

Lessons learned? Challenges?

I knew I was going to have to appeal for a non-conformance condition with the county. I ended up firing a real estate attorney who said we didn't have great odds, representing myself to appeal the county and winning our appeal.

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

Yes, while I am a licensed real estate agent and could have represented myself, I hired a friend who specialized in commercial real estate to represent me and navigate both the purchase and problem solving within the first year.