All Forum Posts by: Tanh Truong

It sounds like a good deal if you can structure it correctly. If he sells the property to you, you wouldn't have to get a broker involved. You could essentially do a loan assumption and seller-financing to take over the property and lease out the vacant unit to get experience. With family members, things can always get muddy - I would put everything in writing and operate as if it weren't a familial relationship. 

Michael, I'm from OH too - Cincy to be specific and focused in the commercial space. Could connect if you're up for it. 

I know nothing of Peter's program, but I am a part of a mastermind/coaching program of investors all learning commercial real estate. Our mentor has over a decade of experience and shares a lot of knowledge. 

@Steven Foster Wilson yessir, close to market rents. Some were higher due to TI (tenant improvement).

Does your area approve of ADU's?

@Steven Foster Wilson For stabilization, we were marketing the property as we were under contract and only have 4 vacant spaces left to fill. As for the refinance, roughly 6-7 months or so. 

Investment Info:

Retail commercial investment investment.

Purchase price: $3,500,000

Off-market deal was presented to us through connections and relationships. Seller was heavily indebted having taken loans from loan sharks at high interest rates. We came in with capital to pay off the high-interest loans for a portion of the ownership. Financing was owner-carried and the plan is to cash-out refinance as we continue to fill up the vacancies.

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

The potential upside from the value-add.

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

The deal was found through networking and mutual connections.

How did you finance this deal?

Private money and owner-carry.

How did you add value to the deal?

Filling vacancies and optimizing management.

What was the outcome?

We're able to increase the value of the property by $2m and pay off our private money after a cash-out refinance.

Lessons learned? Challenges?

Be a problem solver to get deals done.

I've been using Costar, but wondering if there are other databases out there specifically for commercial real estate. I'm most intrigued about owner information, mortgage data and demographic info - looking to optimize mailing campaigns. Any and all information will greatly be appreciated!

Agreed with Marian. Tell the whole world what you're doing. 

Networking is key to finding a mentor. As far as what you can offer, you have something that many mentors don't - time. You can offer your time to help them with what they are looking for or focusing on. Always find ways to bring value to the other party.