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Updated about 3 years ago, 10/29/2021
Motivation can be found, even on a stable, strong, NNN property
Investment Info:
Retail commercial investment investment.
Purchase price: $1,600,000
This property was purchased due to it's stable cash flow and motivated seller. The seller was having problems with his partner and wanted to get out quick. He was a self managing, do it your self type of person who also did not keep good books. This lead to a higher discount.
What made you interested in investing in this type of deal?
The fact that it had strong tenants, newer property, NNN leases, in an amazing area that is in the path of progress.
How did you find this deal and how did you negotiate it?
trusted commercial realtor
How did you finance this deal?
bank loan
How did you add value to the deal?
We will be spending our time extending leases, creating property documents with proof of rental history and stabilized the property. Because of the property is in the path of progress we expect to refinance and pull out all of our initial investment in less than three years. Infinite returns!
Lessons learned? Challenges?
I had a very hard time getting any real documents from the owner. He was not very organized and it was going to take him a lot of time to get everything I needed. He didn't want to do it. He seem to like to talk about himself a lot, so I let him go on for about 25 minutes agreeing with everything he said before I made my ask. He got me the documents by the end of the week. Sometimes people just want you to listen.