Commercial office/shop space

[Brian Christopherson]

Investment Info:

Office Space private money loan investment in Wasilla.

Purchase price: $375,000
Cash invested: $25,000

4000 sqft combination office and shop. Office area has a reception, 2 private offices a bathroom and kitchen. Shop area is a drive through style with overhead doors at either end. Also has a 900 SQFT efficiency apartment upstairs that could be converted into additional office space if needed

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

Got tired of renting shop space for my business, and needed to expand anyway

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

I had interest in the building previously, but couldn't come up with financing quickly enough to buy. When it came up for sale again with newer remodels I was ready. I knew the owner reasonably well, so we were able to negotiate a lease to own deal with him where a 100% of the payments were applied to the loan while my father sold a lot for substantial profit, and 1031 exchanged it for the bulk of the remaining purchase price

How did you finance this deal?

It is currently financed through my father, but we are looking at maybe refinancing into a more standard commercial loan and re using his money on future deals

How did you add value to the deal?

Mostly all we have done is a few minor remodels, although I have a larger renovation in the plans for a couple years from now

What was the outcome?

We have a great office and shop space on semi-permanent lease to my company

Lessons learned? Challenges?

Our biggest challenge outside of the initial negotiation has been trying to nail down a family member to specific detail involving lent money

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

This deal was done completely in house