Small commercial space on 2 year lease

[Blake Wimsey]

Investment Info:

Office Space commercial investment investment.

Purchase price: $72,500
Cash invested: $4,500

Small commercial space currently rented to a massage therapist.

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

We've had success with our other commercial building and found another off-market opportunity.

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

The same seller we bought our first property from offered to sell us the last one he owned.

How did you finance this deal?

Mix between seller-financing and bank-financing.

How did you add value to the deal?

It was vacant when we bought it, rented it immediately on a 2 year lease at $800/month.

What was the outcome?

We elected to place this property on a 15 year note instead of a 20 and it still cash flows $100/month.

Lessons learned? Challenges?

Use a good closing company! Ours delayed us due to some of their own errors, and then made another error at closing because they didn't read our seller financing paperwork properly.