All Forum Posts by: Jasmine C.

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.

Investment Info:

Retail buy & hold investment.

We used the catapult strategy to build my portfolio and add this amazing commercial building into the asset column.

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

the seller was motivated to sell at a discounted price due to his need to do use his proceeds on an exchange he was doing.

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

Our realtor brought it to my attention as a pocket listing.

How did you finance this deal?

bank loan and 1031 exchange funds

How did you add value to the deal?

The property was in great condition and 100% performing. He needed us to close on in 30 days or the deal was off. We had a great relationship with a bank that was able to make that happen even though most banks were averaging 60 days to close. We also found out the tenants were not paying all the rent owed per the lease. The owner self managed and simply forgot to charge them.
We offered to make a few cheap fixes and request they pay what they were expect to pay per the lease.

What was the outcome?

We closed on time, we were able to push up rents because he was not charging everything he was allowed to in the leases increasing our property value by 100K simply by having a few short phone calls with the tenants.

Lessons learned? Challenges?

Biggest lesson learned is to make sure all your ducks are in a row. In commercial a 30 day close in very fast and it is only possible if you have all of your systems and documentation ready to go from day 1. Property management is key to reading leases since commercial leases can be very complicated with CAM's and who is responsible for what.

Investment Info:

Office Space commercial investment investment.

Commercial BRRRR project in the works. Potential to pull all of my money out along with an additional 500K in my pocket once we refinance. TAX FREE!!!

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

We specialize in residential and commercial BRRRR projects. The property was prime for that strategy

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

Pocket listing with realtor

How did you finance this deal?

cash.

How did you add value to the deal?

We did a full rehab and marketed it for rent to specific businesses for maximum value

What was the outcome?

still to come...

Lessons learned? Challenges?

Negotiate seller financing for commercial to account for the hold time and additional cost of rehab. make sure you fully understand the sellers pain points to resolve that issue and try to build a relationship rather than simply trying to negotiate a bottom line. Try to connect with the seller and speak to the realtor less. Patients in commercial is key, fully understanding your holding cost to ensure you will not become motivated was very beneficial on waiting for the right tenant.

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

My commercial agent is the best in the business. If you don't want to miss anything in the due diligence period you want to work with her. Message me for a referral!

https://www.eventbrite.com/e/134041083489

Are you a serious investor that want's to network with like minded people? Are you tired of online meetings and want to meet in person? Then the Fo'Real Estate networking event is for you. Our panel consist of Cory Nemoto a local hard money lender, Richie Baguio a Hawaii based flipper, and CJ Calio an out of state BRRRR specialist. They will answer any questions you might have on active real estate in both large and small group settings. Our purpose is to weed out the want to be investors and start network with people who are taking action. Lets make deals happen together!

Click the link to take action and save your seat
https://www.eventbrite.com/e/116771866797

Hello Fellow Investors

WNN Properties proudly presents Young Park as our guest speaker. Young is a new investor who recently completed his first BRRRR. He will be talking about his experiences and the emotional roller coaster of doing his first deal along with all of the lessons learned. Please reply to this post if you plan on attending.