Historic Building On Main Street

[Reece Riggle]

Investment Info:

Office Space commercial investment investment in Ardmore.

Purchase price: $100,000
Cash invested: $105,000

My wife and I purchased a Historic Building built in 1885. My great grandfather owned this building in the 1940's till 1971. We purchased this building and completely remodeled the upstairs units. My parents assisted me with the remodel and after 9 months of hard work we transformed this gem of a property. The upstairs was not touched since the 1940's and was in need of significant repair.

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

Wanted to take on a big Project in an area I grew up.

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

My uncle and I wanted to invest into Main Street in Ardmore. He knew of a Business owner that had two buildings for sale by owner. He would only sell if both buildings were purchased. My uncle bought one and I purchased the other. He gave us a price and had it under contract in 1 day.

How did you finance this deal?

Local bank loan

How did you add value to the deal?

We spent $105,000 remodeling the entire upstairs units. In total we now have 8 office's upstairs and a 2,500 sf office/retail space downstairs.

What was the outcome?

I purchased the property for $100,000 and spent an additional $105,000 for the upstairs units. Currently the cash flow is $500 a month. This cash flow should increase around $250-$350 once the leases renew this summer. The property appraised for $250,000.

Lessons learned? Challenges?

I will strive to find more contractors to assist with the remodels so my time is not spent working a 40 plus hour job and remodeling on the side. It was hard to balance my time with my wife/family, work, friends, and personal health.