Commercial Rental; Auto Repair Garage.

[Ryan David Dodd]

Investment Info:

Industrial buy & hold investment in Myrtle Beach.

This property was developed in 1985 by my father, the late MSgt Lawrence "Larry" E. Dodd, USAF (Ret). He was an expert in electronics and gasoline engine chassis diagnostics. When he became ill with pancreatic cancer and passed away in 2020, my sister and I executed an asset sale with the help of a business broker and leased the property to the purchaser of Larry's Auto Clinic, a man named Larry, if you can possibly believe that! We paid that property off and secured a 5 year triple net lease, and the business is thriving. The new Larry is a very good friend, and we believe he will extend that lease another 10 years, giving me confidence that we can use the income to aid in acquiring our next investment.

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

I have always broadly been interested in real estate. In fact, I read RTK's Rich Dad Poor Dad in my early 20's but it didn't stick. I didn't have the confidence, mentorship, or wherewithall to grasp onto what's possibly through real estate but when I was forced to deal with my father's business, it was obvious, and I'm now a believer!

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

It fell in my lap. When I did the asset sale, the broker/agent team helped negotiate the 5 year triple net lease, which has rental rate in line with commerical property and increasing by 3% annually.

How did you finance this deal?

No financing was required. I inherited it. Improvements were financed on the properties equity and paid off with life insurance when my dad passed away.

How did you add value to the deal?

Painted, cleaned, replaced the roof, remodeled the office entirely, did some lot maintenance like graveling low spots that held water.

What was the outcome?

Free and clear title in hand, $2500 in rental income increasing 3% annually and direct deposited into my checking account on the 1st of each month! Tentant became a dear friend with a thriving business.

Lessons learned? Challenges?

For ALLLLL the remodeling I did with the help of a GC, nobody ever looked at the Hot water heater, which was situated directly above the office space. 10 days after I issued keys to the tenant, I entered the property on a Sunday and found the office destroyed by water from the failed HWH. I paid an insurance deductible and hired out the water remediation, drywall, and paint repairs and repaired the floors myself.

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

Conway National Bank's Ricky Cox in Surfside Beach, SC is known by many to be one of the best commerical lenders on the Grand Strand. Our business broker was Mike Hughs of Sunbelt Business Brokers. Closing Attorney was at Neill Law Firm. No complaints about any of them.