Industrial Makeover Project

[Gene Jordan]

Investment Info:

Industrial commercial investment investment.

Purchase price: $815,000
Cash invested: $27,000

Purchased a 5 acre 2 building industrial park with below market rents and many possibilities. Raised the rents on 10 small units to market and all tenants stayed. Found a renter for 9600 sf building to replace industrial renter and build out a billiard club. Rolling smoothly now with a 17+% Cap Rate. Certainly my best deal to date.

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

My enjoyment of finding situations and people that can be brought together to make everyone involved profit.

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

Local property. Used and agent with a standard deal.

How did you finance this deal?

Standard bank loan.

How did you add value to the deal?

The money was in the conversion of an undervalued situation.

What was the outcome?

Unbelievable cash flow and structured to very "hands off".

Lessons learned? Challenges?

Helping new business owners with their buildout and being a liaison between them and the municipality. Smart people but inexperienced. Well worth my "free" time to get them going in the end.

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

Actually, no. This prompted me to get my license and do deals myself!