Investing in our new home town

[Nicholas TenBrink]

Investment Info:

Other buy & hold investment.

Purchase price: $325,000
Cash invested: $100,000

2 Story Mixed Use building.
Office/Clinic Space in Commercial Ground Floor unit.
Residential/Short Term Rental in upper Residential unit.

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

An specific lack of available commercial space available in our local area.
A lack of short term rental options for travels in the area, and or patrons of the local event centers.

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

Door knocking.
We explained to the long time owners what our specific intentions were and that we wanted to invest in a building in our community in order for us to also open up a health clinic to serve our community.

How did you finance this deal?

Personal cash and Local Bank commercial mortgage.

How did you add value to the deal?

I was the capital and taking lead on the investment in the building related business.
My wife is taking lead in creating a new business (health clinic) that will occupy the ground floor and be our 'Long Term' tenant at the property.

What was the outcome?

Property acquired, renovations are under way, and getting the building online/operating.

Lessons learned? Challenges?

Door knocking, and having honest conversations with sellers can dramatically help the deal flow smoothly.
The sellers were a local Real Estate firm (their own office) and are well connected to our community.
In the spirit of 'improving our community' I then partnered with our local bank, and worked with a commercial banker that also knew the sellers, and the building very well.
This was also my first LLC acquisition, much easier than I thought it would be.

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

I self represented in this acquisition and worked closely with the sellers(RE firm) to help keep closing costs down.
I worked with the local bank that understood our objectives of investing into our local community and providing access to resources that are not currently present.