I Bought My Office Building

[David Tremblay]

Investment Info:

Office Space commercial investment investment.

Purchase price: $205,000
Cash invested: $10,250

This deal involved some creative financing. I purchased an office building to run my insurance agency out of. After purchasing I was able to divide the space and rent out the other half of the building to a real estate broker.

[David Tremblay]

Quote from @Scott E.:

Quote from @David Tremblay:

Quote from @Scott E.:

Awesome! Did you use a SBA loan for financing?

I got 3 loans in total. The first was 80% of the purchase through traditional commercial financing. The second was through a local community entity called Community Concepts where they help small businesses. They gave me 15% of the financing. The last one was a SBA loan. They were running a promo where they would pay the first 3 months of whatever loan you got so I got a 1 year $5,000 loan which ended up giving me $1,250 for free.

Wow that is awesome and super creative. I'm looking at doing something similar in the next year or so, but didn't realize you could combine products like this. So you were able to buy this deal with basically 100% financing, only paying for closing costs out of pocket?

Technically I put down 5% and covered the closing costs with the loans. The bank providing the bulk of the financing wouldn’t allow me to do 100% financing because they want me to “have some skin in the game” which made sense. If you run your business out of the building and it’s profitable there are many community programs available to help, it’s called Gap Financing.