Owner Occupied Industrial properties

[Lance Jorgenson]

Investment Info:

Industrial commercial investment investment.

Purchase price: $630,000
Cash invested: $30,000

50,000 SF Warehouse/MFG Facility
5.5 acre site w/2+ acres outside storage

My Partners purchases this property for our company for a East Coast Distribution hub

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

Our company can pay for the bldg and do upgrades while build up a huge asset. I am a 25% owner

Right the we just got the property appraised it is worth $2,200,000

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

The bldg. was almost in foreclosure and hadn't been use for 1 + we negotiated a 1 year option to lease with a option to buy at anytime during that time. Purchased it for $630,000 which they tried to get out of since the property increased in value during that time

How did you finance this deal?

Commercial loan with a 20% down with 4.42% interest rate

How did you add value to the deal?

We have had to clean up the facility and have done upgrades as our company has required

What was the outcome?

Building a nice assets and nice Cash flow with everything little invested of my own personal money

Lessons learned? Challenges?

We needed to do a better job of coming up with a better operation agreement with the other partners it is super hard to get all parties on the same page. Example i want to refinance to get the equity out of the bldg. and use to purchase other properties but the others don't see the value