Updated about 4 years ago on . Most recent reply
9 Office Units for $260,000
Investment Info:
Office Space commercial investment investment.
Purchase price: $260,000
Cash invested: $60,000
Office Building Investment Property. $ 4,500-month cash flow after all expenses, CapX, and Maintenance. We are going to paint the outside and add landscaping.
What made you interested in investing in this type of deal?
I was looking for a building to buy for my company instead of leasing office space and I found this building for sale off market. The owner had his office there and really didn't raise rents and it was severely under-rented. There were even 3 vacant spaces that were extremely easy to fill. The former owner just wanted his mortgage covered. He didn't care about any additional profit.
How did you find this deal and how did you negotiate it?
The was an off-market deal that I found through my brother that knew the owner.
How did you finance this deal?
Conventional loan with 20% down.
How did you add value to the deal?
Rented out the 3 vacant spaces, and then we are going to paint it and then raise the rent across the board to market rates. Everything in this city is getting more expensive because the largest indoor sports complex in the country is being built right downtown about 1/2 mile from this property.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a real estate professional myself. The seller was not represented. We used a regional bank to get the loan and the experience was less than desired.
