Looking past the skin and finding something of interest

13 Replies

Do you buy ugly houses? I have succeeded in negotiating a price for my first commercial property that made me quite comfortable. It is a mixed use building in a high traffic area. Currently it is vacant but one tenant is ensured that would be my practice will be moving here.

You can see pictures here

http://www.biggerpockets.com/blogs/1084/blog_posts/12963-first-commercial-property-a-new-adventure#comments

I wonder how many starting out see past the first layer of crud or can envision what a few relatively simple changes can do to a place?

Enjoy the pictures and share your thoughts.

I have short term and long term goals for this property. Over the course of the year I will share other pictures.

I realize in your parts this white stuff just doesn't exist. I would be glad to send some your way though. :)

So while I'm shoveling the interior, I may be shoveling the exterior.

This is an REO which was foreclosed on about 12 months ago. They have slowly dropped the price from 385K to 299K. I originally offered 160K and was told that it was doable if all cash.

I waited, put the cash together and offered the 160K with my terms. Bank came bank came back wanting 175K and there terms. Emphasis on purchasing AS IS . I took a much closer look at what would need to be done wrote up my list and came back with a 155K offer AS IS with there terms. After more hmming and huhhing we are under contract.

Congrats Charles! I can't wait to go through this transformation process with you. Some say they will keep us updated, then they get too busy, forget, etc. So pls let us know how things are going from time to time...

Congrats Charles!

I think a lot of people have difficulty imagining what the AFTER will look like when all they see is the BEFORE. In fact, I'm probably included in that category, which is why it's great that I have a wife who is more creative and more intelligent than I am... :)

Originally posted by J Scott:
Congrats Charles!

I think a lot of people have difficulty imagining what the AFTER will look like when all they see is the BEFORE. In fact, I'm probably included in that category, which is why it's great that I have a wife who is more creative and more intelligent than I am... :)

J Scott, you do great work. Sounds like your wife is a great asset to your business. The ability to walk through a property an envision what it can be, I think is a strong asset for a RE business.

IMHO it helps to see past the blemishes. Many walking through the doors will see the blemishes and fail to see what could be.

I recently met an investor doing very well in the Seattle area. He rehabs apartments in an area of Seattle known for low CAP rates. He buys properties that he can reconfigure or otherwise add value to and usually manages to raise the average monthly income significantly. He usually only holds the properties about a year before selling them at a decent profit.

Very interesting to understand how some investors are succeeding. There are so many ways to work in the real estate industry.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here