Bridge / Hard Money Cash Out on Mostly Vacant Medical Office

[Brock Freeman]

Investment Info:

Office Space hard money loan investment in Pontiac.

Cash invested: $600,000

12-month, I/O, Cash-out loan for renovation.

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

Medical office was virtually vacant, being mismanaged by the previous owner, then quit-claimed to current borrower after a bad business deal. However, location was across the street from a hospital and borrower was from the medical industry so post renovation lease up should go quickly.

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

Brought to us by Malcolm Turner at Castle Commercial Capital.

How did you finance this deal?

Funded off our Kirkland Income Fund.

How did you add value to the deal?

Due to the quit claim from the last owner we worked closely with borrower and loan broker to overcome and clear up some serious title issues.

What was the outcome?

Successfully funded.

Lessons learned? Challenges?

When you buy a property for cash, spend the extra money to pay for title insurance. It will help one avoid the title issues we saw on this deal.

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

Malcolm Turner at Castle Commercial Capital: a standup, reliable commercial broker in Michigan.