Business and Building BRRRR for 0% down

[Brett Merrill]

Investment Info:

Industrial commercial investment investment.

Purchase price: $500,000

In the heart of our local community, I embarked on a journey that epitomizes the power of strategic thinking and problem-solving, resulting in the acquisition of a long-standing business and property that has become a beacon of success. This was all acquired for 0% down.

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

The key to this success story was my ability to be a problem solver. Observing that the business consistently attracted a loyal clientele, coupled with high profit margins on services rendered, I saw an opportunity. The on-paper profitability did not reflect the true potential of the enterprise, and I knew transformative action was needed.

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

I engaged the managers who knew the ins and outs of the business. I proposed a unique opportunity for them to become co-owners, aligning their expertise with the vision for revitalization. The acquisition unfolded seamlessly, creating a synergistic partnership that leveraged the collective knowledge and passion of the existing team.

How did you finance this deal?

Approaching the four distant owners, I proposed a comprehensive solution—acquiring both the business and the property. The timing was opportune, as the apparent struggles of the business allowed for a purchase at a favorable market rate. Negotiations led to a groundbreaking deal with seller financing: 0% down, a 5-year balloon at 5%, and an additional $20,000 at 5% interest upon the liquidation of their business, providing a financial buffer during our transition.

How did you add value to the deal?

Since the acquisition, our focused efforts have yielded remarkable results. We've halted financial leaks, brought in fresh talent, and implemented training and bonus programs that nearly doubled productivity.

What was the outcome?

These strategic purchases form the foundation for a robust future, generating excellent passive income and equity. By acquiring distressed business and property, leasing to ourselves, implementing improvements, and strategically refinancing, we are poised for sustained success. This narrative reflects not only a triumph over challenges but also a blueprint for future opportunities, where strategic vision and problem-solving can create lasting prosperity.

Lessons learned? Challenges?

Be a problem solver.