First Commercial Purchase: Boiling Springs NC

2 Replies

Investment Info:

Retail buy & hold investment in Boiling Springs.

Purchase price: $600,000
Cash invested: $600,000

Small Strip Mall diagonally opposite Gardner Webb University, 1 hour from Charlotte, NC. Very small town.

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

I tired of owning small residential for many reasons. Relocated to East Coast and this was my first commercial purchase.

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

Real Estate Agent in Charlotte.

How did you finance this deal?

All Cash from 401K.

How did you add value to the deal?

Poorly I fear. I relied too heavily on the broker and didn't contact very local brokers ... a mistake but it was my first deal.

What was the outcome?

8 year later, all 5 units are full and I am making about 8% on my investment. The population of the small town has not grown much and the value has increased to my original purchase price. It has little overhead and the tenants are happy, I have good management and have no where else to put the money.

Lessons learned? Challenges?

Investigate local sources to get value, not the commercial brokers from another city. Pay your manager well and many headaches would not appear. My first manager did nothing for 6% but my current manager does it all for 10%. Worth it to me.

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

Bill Chambless in Shelby NC is my manager.
Rob Cassum in Charlotte helped me a lot as a small investor.

Promotion
NestEgg
Smarter rental management
Outperform your peers by 71%
NestEgg landlords save $6,960/yr in fees & 20 hrs/mo*. Self-manage for free or go hands-off for $29.
Start now, get $500

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