First small commercial purchase

[Gus Muller]

Investment Info:

Office Space commercial investment investment.

Purchase price: $150,000
Cash invested: $20,000
Sale price: $255,000

First small commercial property purchase. Purchased with cash from my flips. I had no idea what to do with it, but decided to open my own real estate brokerage. After owning it for a few years, I decided to sell and take the profit for more operating capital for fix and flips.

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

Liked the location and the attached shop. Seller was in a tough situation, and the price was right.

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

Saw a sign go up in front of the building and negotiated it direct with seller and sellers agent.

How did you finance this deal?

Cash

How did you add value to the deal?

General cleanup of exterior, new roof, new flooring, paint, etc.

What was the outcome?

I ended up selling the building for a nice profit.

Lessons learned? Challenges?

I learned that even though a commercial property is on a busy road, that doesn't necessarily mean you'll get business.