1 Acre Commercial Property Rezoned to 6 Townhomes.

[Jim Lyon]

Investment Info:

Large multi-family (5+ units) wholesale investment in Glenview.

Purchase price: $240,000
Cash invested: $100,000
Sale price: $600,000

This was done in the 90's. Been a while.
Bought Commercial 1acre lot with existing Tenant amongst Multi-Family and single Family. The Commercial Tenant known as
The Snoop Shop ( pottery classes for children B-day parties), continued to rent until Re-Zoning was issued.
Area filled with Multi-Family and Single family.
Was in Flood Plain. Paid for Civil Engineering and Blueprints.
Sold package to a Developer.

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

It really was finding 'any deal' that could be brought to it's next highest use.

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

Drive buy. Saw sign. Immediately Called. They wanted $290,00. Two days later Offered $240,000 with Financing Contingency. Excepted.

How did you finance this deal?

Bank

How did you add value to the deal?

Engineered out Flood Plain with Ample detention for a 6 Unit Brick Townhome project. ( 3- 2 unit Townhomes).

What was the outcome?

Very fortunate. In at 240k + Closing/Prints/Eng 35k = 275k. Sold for 600k. Out with 325k. Split between 3 partners.

Lessons learned? Challenges?

Some of the many Lessons:
First envisioned a house flip only to run into this property and then imagined a bigger deal and payday. Went for it.
Taught me anything is fair game.
How too manage commercial tenant.
Property management. Grass cannot be over 8". Lot of asphalt to plow in winter. Managing water accumulation while going thru process.

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

Local professionals.