Sanjiv Jain Commercial Deal

 

Sanjiv Jain Commercial Deal

8615 Germantown Ave, LP in Philadelphia, PA

This was a property adjacent to another property I own and had been on the market for many months. I called the owner and worked out a deal to by it \"as-is\" and worked out a significant discount if I could close quickly & bought it as is. I immediately contacted my banker, whom I\'ve had a relationship for many years. I asked him to get me a letter of my being credit worthy and that they would provide a purchase loan for me to buy this. He got it to me the next morning. I submitted the offer, along with the letter from the bank and gave the seller 6 hours to reply. He showed it to his sister, we worked out some language in the offer and the closing date and it was executed the next day. I bought it with 80% financing from the bank & used private money for the closing costs as well as the 20% down. I then went to work finding a commercial tenant ended up having one of my tenants from another building consolidate their manufacturing (from another location (that I don\'t own) where they paid rent greater than my price) and retail from another store as my tenant into here. The tenant did over $200,000 in rehab costs installing bathrooms, flooring, new HVAC, electric, lighting, drywall, painting, etc. I put in about $50,000 in repairs/upgrades. I just added a second mortgage from the same bank that has the first and was able to cash out $400,000. Purchase: $500,000 (9/2016) ($400,000 bank financing, rest Private Money) Rehab with my funds: $ 50,000 Rehab with Tenant funds: $250,000 Newly Appraised Value $1,000,000 Cash out at Refinance $400,000 12/2017 (paid back to Private Money person: $125,000) Net Money in pocket: $275,000 ALSO Cash Flow with 10 year, true NNN single occupant tenant: Monthly Rent: $6,630 (with 2% per year increase) Total for both mortgages: $4,447 Net Positive Cash Flow: $2,183

Commercial Details

Property City: Philadelphia
Property State: PA

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

Going to the Commercial Academy helped me do the analysis even more detailed and feel comfortable in taking on the risk of buying a completely vacant building. This was my Plan \"A\" My Plan \"B\" for the building was to put in two apartments on second floor and get a NNN commercial tenant for the first floor.