Commercial buy with an option to purchase or ROFR

[Tyler Warne]

Investment Info:

Condo buy & hold investment.

Purchase price: $595,000
Cash invested: $125,000

Purchased with the intent to lease to the tenant. This tenant intends to purchase the building in the next few years.

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

I had an investor that was willing to put it under contract and then it nearly fell out when he asked for too much from the business owner. The deal nearly fell apart and I decided to finish it with a small investment group that we have. The investment will be 12.5% cash on cash and an overall return on the money invested will be 48% over 2 years.

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

I'm a commercial broker. I negotiated through the original contract and then put the rest of the deal together with an existing group of investors.

How did you finance this deal?

commercial money.

Lessons learned? Challenges?

I should be a little better at getting through the contract and the other detail tasks. That's why I have my team. I'm not as good at that. I am very creative and find solutions where others seem to see roadblocks.

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

I'm a broker and I have 2 other agents on my team. I am doing a lot of deals now.