Commercial office building for owner occupy

[Michele King]

Investment Info:

Office Space commercial investment investment.

Purchase price: $277,000
Cash invested: $300,000

Still holding property. Current Market value $1.2 million. Cash flow every month since day one.

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

Owner occupy for my commercial construction company with an extra 7,000 sf to rent out. 12 tenants in building.

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

Bank foreclosure. Our real estate agent became a sellers agent during the process so they could benefit from the sale. Win win all around. Put large earnest money up to hold deal and used SBA financing at AVR. Dealt with the bank holding the note directly.

How did you finance this deal?

SBA owner occupied loan 5% down 3% fixed for 20 years. Just refinanced with a conventional loan to pull our cash. Still great terms and rates. Now more cash for other deals.

How did you add value to the deal?

Complete renovation. Roof, windows, all finishes, HVAC, plumbing and electrical,

What was the outcome?

Still there would buy 10 more!

Lessons learned? Challenges?

Smaller office spaces are great but can take a bit longer to rent as a broker is not interested in listing the property. Loopnet helps.

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

Wright Kingdom out of Boulder. Tom Hall knows everyone.