First commercial deal closing soon – I know it’s good, just wondering if this is normal.

    First-time commercial buyer in the Midwest. Done my homework, lender is in, I’m confident in the deal. Not looking for validation – just genuinely curious if deals like this exist regularly or if I got lucky.

    The deal:
    • 8,000 sq ft flex/industrial in the Midwest, good condition
    • National tenant, public-company-backed, been there 8+ years
    • NNN lease
    • Buying at a 10 cap for $550K
    • Roughly half what an owner-user would pay for the same building
    • 3.5 years left on lease. Lease rate is 35% below market.
    • No broker on either side, found seller through direct mail
    • Owner held 20 years, out of state
    • Phase I clean, clean title and ALTA.
    • Lender offered 100% financing

    For those with experience in small industrial – is this a once-in-a-while find or can you consistently source deals like this? What’s your strategy for finding more?

    Is this normal for commercial or did I just get lucky?
    byu/MrAuzzy inrealestateinvesting



    Posted by MrAuzzy

    1 Comment

    1. milliondollarboots on

      Looks like a good deal on the surface. Any options on the lease? What about age of roof/HVAC/parking lot?

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