More than meets the eye Commercial Property

[Matt Smith]

Investment Info:

Single-family residence commercial investment investment in Brazoria.

Negotiated a seller finance deal on this property that sat on the market for a few years. I saw value in the 1.87 acre lot on a growing Tx State Hwy.

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

Due to DOM, and marketing more as residential, I saw tremendous value in this commercial property on Hwy 36. With the Port of Freeport expanding and billions in commitments for many years to come this investment seemed like a solid long term play.

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

This deal was on the MLS and advertised in The Real Estate Book. Verifying some older Google Map street view dates that suggested this property was on the market for 4 yrs, I thought it might work to reach out to the listing agent and offer 10% down, with seller finance.

How did you finance this deal?

The owner financed with 10% down and carried the balance.

How did you add value to the deal?

I subdivided the property by separating the small house on about 15,000 sf lot, and keeping the remaining 1.5 acres as another property.

What was the outcome?

Now have two properties on Hwy 36. A small stand alone building on an oversized lot, and 1.5 acre plot of land.

Lessons learned? Challenges?

The City presented some challenges during the subdividing. It required a city council vote, and a few changes to the overall plat. This process took several months. Keep in mind that towns and cities may have different ordinances that may require city approval before tackling your plans.

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

The listing agent was very helpful in negotiating and closing this deal.