My First Deal.. Home Run or No?

[George Ahearn]

Investment Info:

Retail commercial investment investment.

Purchase price: $600,000
Cash invested: $3,000

Downtown Main Street in Bothell, WA 98011

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

I owned a business at the time, and saw it as both a good real-estate play, but as rent control for my business. Sure enough, my competition over the years had to move away, and I realized the power of appreciation and depreciation. A few years after selling the business, but keeping the people I sold to as renters, the renters suffered heavy loss During COVID. They were my good friends, so I bought the business back so they could relocate their family to a lower area of cost of living.

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

I literally bugged the owner (politely and nicely) twice a year, for 11 years, as I would see him at the same two community events. I always wanted to get started in real-estate. One day, he invited me out to coffee, and said, "George, you're buying my building."   The best part was how I was gonna finance it...

How did you finance this deal?

I had very little resources. The man who sold it to me, had been watching me for years and knew who I was, and was a productive member of the community, and admired things I had done. He said he would finance the deal, and I would only be required to put $3,000 down! I couldn't get my hand out of my pocket fast enough. I wasn't sure where I would get the money, but I knew it was too good of a deal to pass up, and this was gonna be mine!

How did you add value to the deal?

Having my own business occupied the space was all the value I needed. When I started a second business, I used that model to pursue my second deal.

What was the outcome?

I still own the property, my business is successful even with the COVID debacle. the property has increased in value significantly and I have a ton of equity, I'm just wondering at this moment what I should do with the equity.

Lessons learned? Challenges?

My biggest challenge is, even though this has been a while, and I've been an "investor" for years (even purchased a better deal on a second piece of commercial realestate) I'm just now starting my real-estate education. I just recently discovered BIggerPockets and podcasts on the subject. I foolishly had no idea free advice existed. I'm soaking up everything, hoping to make a move soon and expand my empire so that I can help others.  I'm happy to hear your advice!

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

Yes, message me if you need an expert in Bothell, WA on Commercial Real Estate.