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Updated over 5 years ago, 05/02/2019
Quick mixed use summary
Investment Info:
Other commercial investment investment.
Purchase price: $1,150,000
Cash invested: $650,000
1031 exchanged into property
Mixed use 10 unit
Value add put about $250k in capital improvements.
Doubled value of property in three years
What made you interested in investing in this type of deal?
I've always been interested in mixed use urban developments. Pride of ownership applied here because it's a historic building in an up and coming in Long Beach, CA
How did you find this deal and how did you negotiate it?
Through a very good realtor. Negotiations are too complicated as they differ with the type of property and the market it's in. For instance how many buyers for this type of asset are there?
How did you finance this deal?
1031 exchange money and local credit union contacts
How did you add value to the deal?
Long story short, it was a 1 year intense project management rehab, then 2 years of churning retail tenants
What was the outcome?
doubled property value... also in an uptrending market so that played into the appreciation
Lessons learned? Challenges?
many lessons...many challenges... every deal large and small has been full of growth and lessons. This project has led me into larger deals.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes your team is essential. It takes years and many deals to build trust