Commercial Real Estate Investment

[Drake Bishop]

Investment Info:

Office Space commercial investment investment.

Purchase price: $130,000
Cash invested: $16,000

An older office space that i had renovated and rented

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

I prefer dealing with businesses.

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

I saw it while driving. I gave a low offer and they countered with a reasonable price. I took it

How did you finance this deal?

Traditional

How did you add value to the deal?

Updated fixtures. replaced metal water lines. Flooring, Paint, Demoed 1 of the rooms and opened it up.

What was the outcome?

Rented it out to a long term tenant that signed a 4 year lease.

Lessons learned? Challenges?

Stay hands off on renovations as much as possible. Even if you know how to do all the trades.

If you can afford to pay other people, do it. The renovation process is faster, you have more time to do "big picture" projects and tasks. Other people like contractors, painters, plumbers, etc. are able to make money on the deal. You also get to build relationships with these people which you will need in the future.

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

Agent: Tracy Honea - great person and friend. Is the mayor of Albertville, AL