First deal - How did it look like for you?

Question

I thought we could share experience about our first CRE deal.

Mine was a restaurant in a small fisher community here in Canada. I got private financing, was lucky only had to put 10% down. I found a lease agreement online and did the best with what I knew back then. The lease was gross with the tenant responsible for all utilities. I am now offering them a rent to own, so they can fulfill their dream of owning their place of business.

I am involved in a mastermind now and learning a lot about how to handle things more professionally:

- identifying a deal with value add opportunity - a "unicorn",

- test driving the property during due diligence - see if the vacancies could be rented,

- replace mom and pop with regional/national tenants.

Would love to read the story of your first deal!

Scott E. · Answer

My first commercial deal was a medical condo unit about 20 minutes south of where I usually invest.

The deal was brought to me off market by a residential realtor that I work with a lot. When she told me she had this opportunity coming, I knew I had to pursue it because if I didn't, somebody else would snatch it up the second it hit the open market.

The existing owner was dissolving his company so he fell into the bucket of "motivated" because he wanted out, and the building would be delivered vacant.

I bought the place, my broker spent ~3 months looking for a tenant, and we received an offer to buy the space that I couldn't refuse.