Large Multi-use Commercial Property

[Account Closed]

Investment Info:

Other commercial investment investment in Sacramento.

Purchase price: $670,000
Cash invested: $600,000

Mixed-use property using the buy, rehab, rent, and refinance formula. Raised private funds for the rehabilitation.

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

This is a value add mixed-use property in a burgeoning area of Sacramento. The long-term prospects of this property are tremendous.

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

This was an off-market deal obtained through personal networks.

How did you finance this deal?

We owner financed the purchase and raised private capital for the rehabilitation.

How did you add value to the deal?

This is a complete gut job. We also plan to add value by erecting additional residential units upon the parcel.

Lessons learned? Challenges?

Everything costs more in commercial projects.

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

I worked with Al Williamson, my business partner, to raise the capital. I am the attorney on the deal that structured things and papered the deal.