Creative Financing Deal In Progress

[Faith Harris]

Investment Info:

Other commercial investment investment.

Purchase price: $925,000

After lending support and insight on business planning and development for decades, I am in pursuit of my first acquisition. This is a distressed property deal with enormous potential and a massive COC return.

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

I have been researching for a long time. This particular deal came to me upon relocation and dropped out of nowhere. Thus begins my adventures.

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

I am still negotiating it. I have fresh eyes and am not afraid to invest some sweat equity. I have a great agent that is working with me to structure a solid yet creative deal.

How did you finance this deal?

Will let you know when i do!

How did you add value to the deal?

Renovating multi use property with 90%vacancy. Owner is retiring. The local vacancy rate almost 0%, a great need for rentals. This deal is a 2 phase process: downstairs is retail and upstairs 20+ offices will be renovated into quality micro apartments. 4 Offices will first be AirBnBs (also near 0%vacancy in our summers). NOI will be used for 2 apartment renos, followed by $10,000 city grant for each dwelling, rinse and repeat until all 20 are micro apartments.

Lessons learned? Challenges?

Finding startup funding / not enough Net Worth

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

Yes! Joe Russo from Russo Realty. Brilliant.