My first commercial building investment
Investment Info:
Industrial fix & flip investment in Garden City.
Purchase price: $1,300,000
Cash invested: $130K down + $140K in improvements
Sale price: $2,000,000
Here's a quick video overview of the experience we gained owning this building:
What made you interested in investing in this type of deal?
I wanted to start learning about being an investor.
How did you find this deal and how did you negotiate it?
Found via broker.
How did you finance this deal?
10% down plus SBA loan
How did you add value to the deal?
We fixed a long list of things that were wrong and raised rents.
What was the outcome?
We generated a gross profit of approximately $700,000 over two years.
Lessons learned? Challenges?
Don't assume tenants that are paying under market rents will stay when you raise their rent to market rates.