Hunters Point - Commercial

[Brandon Michael]

Investment Info:

Small multi-family (2-4 units) commercial investment investment in Lebanon.

Purchase price: $325,000
Cash invested: $1,500

Commercial Business Office, Garage & Warehouse - This property was an old 3 bedroom house that another flipper fixed up, enclosed the garage, added a 1,200 sq. ft. metal building (warehouse/shop) before we purchased it. Recently, we separated the house into 2 sections so that we could maximize rent. There are 3 different tenants that pay rent every month. We are looking to add another warehouse/shop to the property next year to increase the value of the property and get another renter.

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

My companies pay rent for space, so why not own the property and pay rent to myself!

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

A local real estate agent friend helped me find it and I negotiated with the owner directly to save $50,000 off the asking price.

How did you finance this deal?

This deal was financed by a banker that we use on my commercial property investments.

How did you add value to the deal?

The investor that had flipped the property had other projects in the works and needed to move this property so he could have the capital to invest in other deals. And my companies needed a place to do business.

What was the outcome?

The investment is solid. We are looking to hold onto this property for the long haul to collect rent for decades.

Lessons learned? Challenges?

1) Make sure water pipes are in good shape inside and outside on the property.
2) Have a good electrician handy that can add lights and reroute wires/switches.
3) Concrete > Asphalt

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

Luke Blackwell with Blackwell Realty in Lebanon, TN is a great agent.