First Commercial Building!

[Austin Montgomery]

Investment Info:

Retail buy & hold investment in Enterprise.

Purchase price: $150,000
Cash invested: $7,000

9-unit Commercial Strip Mall. Got 100% financing including new roof from private mortgage. Renovated Exterior and Currently in process of renting. Current Rent: $4420. Rent at full occupancy: $5720.

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

Wasn't really looking at commercial, but a friend found the deal, and the numbers looked promising!

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

Had a friend find the deal and offered to partner with me. Started off together, but they dropped out prior to closing. Found the financing and did the deal myself!

How did you finance this deal?

Private Mortgage from a local investor I networked with at a BiggerPockets meetup! 100% Financing (including $35k roof) at 8% for 20 year with a 5 year ballon. Value add will allow me to cash our refinance quickly.

How did you add value to the deal?

New roof, painted exterior, seal coated parking lot, marketed it! (Total in about $7000).

What was the outcome?

In process of renting. Rent at purchase: $2260. Current Rent: $4420. Market Rent at full occupancy: $5720. Have already doubled value at same cap rate.

Lessons learned? Challenges?

Much harder to rent commercial. Everything costs more. Easier tenants to deal with because they are responsible for interior maintenance.