First commercial property leased!

First commercial property leased!

Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
Finally got my first commercial property leased! 4500 sq ft warehouse with offices and 1/2 acre outside storage in Jacksonville FL. Found it aging on Loopnet in March 2018...threw out an offer for 72k with owner financing. GOT IT! 72k owner financed 10k down 3.0% interest 15 year note, like $313 a month Insurance $1200 a year Total invested $15,500. Cleaned up exterior grounds, did exterior paint and re-blacked the parking area for curb appeal. Hauled off some trash. Signed a triple net 2 year lease yesterday for $2,000 a month with $1,000 deposit. I gave them a break on deposit because they took it as-is. It's a company that dismantles newer, damaged cars and resells the parts on ebay and other online platforms. I did not use an agent, I made signs with my number and attached them to the building. Took a long time to lease but worth the wait. Off to the next one!!
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  • Developer 路 Indianapolis, IN 路 Member since 2012 路 259 posts 路 129 votes
    7y

    Wow, congrats... Your owner finance deal is killer!

  • Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Neil Goradia Thx neil!!
  • Rental Property Investor 路 MN 路 Member since 2015 路 186 posts 路 149 votes
    7y

    Congrats! How long did it take you to find the tenant?

  • Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Pavel Ushakov 5 months... Most people were tire kickers or seemed untrustworthy
  • Rental Property Investor 路 MN 路 Member since 2015 路 186 posts 路 149 votes
    7y

    That's not uncommon for a commercial building. It took me 8 months one time and in a good location. I'm sure showing it during winter months contributed to this as well. That's why I have this love/hate relationship with commercial buildings. Gotta love NNN and long term leases, but hate long vacancies (sometimes).

  • Flipper/Rehabber 路 Minneapolis, MN 路 Member since 2016 路 1k+ posts 路 1k+ votes
    7y

    @Mark Fries congrats on getting it leased.  My only concern here is that you have an auto dismantler moving in.  Did you consider the possible environmental liability with this type of company?  Did you add additional terms to your lease?

  • Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @John Woodrich No..probably should have... It's a risk I'm willing to take plus I was just so excited to get it leased out to be honest. Hopefully I can crush for a little while before the EPA comes busting down the door!!
  • Flipper/Rehabber 路 Minneapolis, MN 路 Member since 2016 路 1k+ posts 路 1k+ votes
    7y

    @Mark Fries completely understand.  I have seen some old gas stations and repair facilities that have relatively no value due to the environmental liabilities.  You may want to make it clear that you expect the fluids be recycled appropriately.  May make sense to take a visit there to make sure they aren't drained onto the floor  :)

  • Rental Property Investor 路 Jacksonville, FL 路 Member since 2008 路 784 posts 路 528 votes
    7y

    @Mark Fries That is awesome! As others have mentioned, make sure your insurance covers that type of business being in the space. Cars have flammable stuff in them, I don't want to see your building on the local news station because the tenants were stupid. I am sure the EPA will come calling, if not the city, so be ready. Great job though! 

  • Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Jack Bobeck I agree I will go ahead and draft up a letter stating requirements that I have for environmental protection stuff and send it to them certified mail with a receipt so I can track it..and have proof of my leasing policies
  • Rental Property Investor 路 Redmond, WA 路 Member since 2018 路 44 posts 路 4 votes
    7y

    @Mark Fries congrats & so happy for you.

    Thanks for sharing your story to inspire others like me 馃憤

  • Contractor 路 Jacksonville, FL 路 Member since 2016 路 8 posts 路 4 votes
    7y

    Wow!  Great way to end 2018!

  • Investor 路 Jacksonville, FL 路 Member since 2015 路 94 posts 路 32 votes
    7y

    This is awesome, Mark! Congrats!

    Was the seller offering owner financing or did you have to sway the owner to do it?

  • Involved In Real Estate 路 Lawrenceville, GA 路 Member since 2014 路 23 posts 路 7 votes
    7y
    Congrats on a nice win! ! !
  • Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Pattie Lewis Thank you!!
  • Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Tony Figurelli Tony, I threw the idea to him...it was aging on loopnet and I just figured he was running out of options....kinda like " something is better than nothing" approach and it worked
  • Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Tron Pham Thanks Tron!
  • Rental Property Investor 路 Atlanta, GA 路 Member since 2016 路 325 posts 路 253 votes
    7y

    @Mark Fries You did an awesome job. Amber fins ace and at 3% is amazing. Even more surprised that you found it on LoopNet. Congratulations!!

  • Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Al Pat Thx Al!
  • Specialist 路 Louisville, KY 路 Member since 2017 路 166 posts 路 154 votes
    7y

    @Mark Fries Congrats on the deal and on the owner finance. 馃憤馃憤

  • Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Kyle Schlosser Thx kyle!
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