New Business Venture

[Spencer Mitchell]

Investment Info:

Office Space commercial investment in Houston.

Purchase price: $2,700,000
Cash invested: $200,000

This is a 3 Year Triple Net Lease with an Option to Purchase at $2,700,000. We have made numerous big ticket repairs and will exercise our option to buy.

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

Decided to start a Wellness Center business with partners and make various health and wellness services available at affordable pricing.

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

One of my partners actually discovered the property on his way into the office. We reached out to the realtor and negotiated without the help of a realtor of our own. However, our healthcare business attorney was in the loop and contributed some fruitful advise throughout the negotiations.

How did you finance this deal?

We financed this deal out of pocket. Each partner made an equal Owners Equity Contribution.

How did you add value to the deal?

We have added value to the deal by taking a property that had been vacant for approximately 2 years, and was a haven for the homeless. Since taking possession of the property, we have made significant upgrades to the property and improving the value of the property and making the building more aesthetically appealing to the neighborhood.

What was the outcome?

It's still very early in the process, but we believe it will be a successful business venture.

Lessons learned? Challenges?

One big takeaway for me personally, would be to utilize the help of a licensed professional commercial realtor to negotiate on my behalf, going forward. Had we used a licensed expert, we could have saved ourselves a lot of headache and money in renovations, that otherwise, could haver been negotiated to reflect more favorable terms for us.

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

Unfortunately, not, LESSON LEARNED!!!