Commercial Property Come Up

[Tammy Nehmzow]

Investment Info:

Office Space commercial investment investment in East Bethel.

Purchase price: $50,000
Cash invested: $15,000
Sale price: $150,000

This space was used as an office that we bought on a contract for deed with a 0% interest rate. It was a 2 year long negotiation to purchase this property from a seller who was trying to retire (slowly). We had renovated it very simply at the time. The City came to us and offered us the same priced we had purchased it for. After another year of negotiating with the city, we sold it for 3 times what we bought it for.

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

We needed a small office space to run our business out of at the time and were sick of renting a tiny office.

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

We drove by the small building quite often. My husband would call the owner and harass him often (half joking about this part).

How did you finance this deal?

We put down $5,000 cash and the seller gave us a 8 year contract for deed with 0% interest and payments of $300 a month.

How did you add value to the deal?

We took this property off the hands of the seller and for that he was ecstatic.

What was the outcome?

We made an over profit of about $90,000 about $10,000 renovations.

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

We represented ourselves and wrote up our own contract for deed.