Just bought a medical office building (R.E. Investing)

I cannot believe the real estate market today. Lots of money to be made if you can find the deals.

Today I received word that my offer to buy a 2 story medical office building has been accepted. The building has an elevator, nice professional offices, is modern and up to date, its well maintained with newer mechanicals. Its in an urban setting and has its own parking lot.

Got an appraisal to rebuild the building, the cost to replace is $945,000.00

My offer was $107,000.

My real estate partner listed it at $379,000 and we already have 3 professional corporations that want to tour the building and possibly buy it. With any luck I will sell this building at a 'double close' and never have to pay for it so the only out-of-pocket money will be my earnest money.

What amazes me is that I am finding other deals that are like this and they are not as rare as one might think.

Anyone else picking up deals on commercial/industrial/office properties?

Shweeeeeeeeeet!

things are cheap where I'm at, but the chance of flipping it are nil.

SShepherd said:

things are cheap where I'm at, but the chance of flipping it are nil.

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This is where I will disagree with you.

Things are cheap here too. And the whole economy here is depressed. Yet there are still some people who are growing, investing, buying. The key is the find the people who are looking to expand and then find what they are looking for, then snap it up, then fit them into what you just bought.

What I did was find a dentist group that was looking to expand, and I found out where they were looking to expand. Then I found a building that was NOT on the market but was languishing unused and owned by a large corporation . . .

We are looking for new building for our business. Commercial is still expensive and slim pickings around here. Which I could run into a deal like that.


murph

good deal, melensdad. it's a real $$-maker if a person is adept @ it.

ex/his buddies flipped on the side of thier actual business then his boss sold the places & split the profits w/ his employees.
several old friends flipped thier own places, plan to live there for a few, sell, flip another while living there, etc. we were to try the same- i refused to live in that area, tho.

Boy did you mess up Bob. This looks like it could have been even a sweeter deal if you don't mind the hotel business. Maybe the sales just aren't there though to fill it.

From 6 million asking price to less than a million sale


Hotel

Thats great Bob . Buildings around here are a good deal also if you do your homework . Sounds like you did .

I don't do partnerships of any kind . I either contrll 100% or nothing . I have seen way too many fail from bickering .JMO

BigAl said:

I don't do partnerships of any kind . I either contrll 100% or nothing . I have seen way too many fail from bickering .JMO

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Generally I agree, but I do some RE deals with a partner under the condition that the building is flipped. These are all short term deals and the deals are done because I can't do them alone, as was the condition in this case. My partner had the connections, but needed funding. I had the funding.

There is another deal I'm looking at, a building going into default. Worth over $1.7M, I can buy the note from the lender at a big discount. That is a deal I will do alone since its an income property and retain 100% ownership since I'll hold the property. I will hire my RE partner as the property manager. Income is over $20k month, cost is $450K. Full payback is 25 months.

Melensdad said:

Generally I agree, but I do some RE deals with a partner under the condition that the building is flipped. These are all short term deals and the deals are done because I can't do them alone, as was the condition in this case. My partner had the connections, but needed funding. I had the funding.

There is another deal I'm looking at, a building going into default. Worth over $1.7M, I can buy the note from the lender at a big discount. That is a deal I will do alone since its an income property and retain 100% ownership since I'll hold the property. I will hire my RE partner as the property manager. Income is over $20k month, cost is $450K. Full payback is 25 months.

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Sweet ! Way to go Bob !!!

So how is this working out ? Keep us informed !!!