My first (non-residential) commercial building

[Dustin Young]

Investment Info:

Office Space buy & hold investment in Racine.

Purchase price: $275,000
Cash invested: $37,500

3 commercial buildings with 1.5 acres on 1 parcel.
3200sf daycare with full basement
5700sf office with full basement
4500sf shop with 10' drive through doors
Been vacant for 5+ years

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

I could see the potential. All 3 buildings were vacant, 2 with water damage to the basement, 1 still had 6-8" of standing water. All 3 had new roofs in 2014 so I knew the water problems were most likely resolved.

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

MLS. I made a really low cash offer and a more reasonable offer with financing.

How did you finance this deal?

Partner and I split the down payment and used private money for the balance.
Personal money for repairs

How did you add value to the deal?

Renovate and rent out

What was the outcome?

still working on it but we had two tenants ready to go before a single hammer was swung

Lessons learned? Challenges?

60 days to close on commercial is not enough

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

Me!