Showhome Leaseback Deal

[Ricky Sommerfeld]

Investment Info:

Single-family residence commercial investment investment in Edmonton.

Purchase price: $400,000
Cash invested: $42,000

This was a turn key, new build property in an under-construction neighborhood. I purchased the property form the builder and upon closing they signed a commercial lease to continue operating it as a showhome.

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

For my first deal, this seemed like a slam dunk. 1k/month cashflow and no tenants, and they are even paying the property taxes!

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

Found it through my network of off-market deals, there was no negotiation. The builder set the price and terms.

How did you finance this deal?

I put up 50% of the down payment, and raised capital form a JV partner for the remaining.