Roman warnings about your profit expectations

  When you start a business there are a lot of expenses. If you have offices or a shopfront there will be a fitout. There’s stock to buy, maybe staff to pay and legal and insurances which you need to get in place before you can even open the doors. All of that adds up to a big outlay up front before you’ve even made a single brass razoo. People generally know this and it’s not uncommon to factor into a business plan that the …

Where people lose focus

  I wanted to share something that I believe holds a lot of people back from achieving more. It’s to do with where you focus… And one thing you may be forgetting to focus on. Your first instinct might be to say “Nah-James that doesn’t happen for me”, but you’d be surprised how often I see this one thing come up fro people in all kinds of subtle and covertly unconscious ways. Happens to me all the time. It’s this: The feeling that because someone …

How long can you sit around doing not much?

When I moved up to Byron Bay many years ago I wasn’t actually moving here. I’d bought a property that was a bit of a fixer-upper and I just came up here to renovate the place. I just never left. I did renovate the place – but I also fell in love with Byron Bay and decided to stay. At the time I’d already created enough passive income to live on so there were no worries there, but I didn’t have any specific purpose for …

Who’s the boss here anyway?!?

I remember back in the dark ages when I was a youth and got my first job. I remember the feeling of being at the mercy of the boss… Like, in a way, I lived and died at his whim… He could sack me any time and I would be without a job and have no money… In reality it probably wasn’t all that serious, but I know I didn’t like the feeling of having someone else in charge of whether I had money or …

The Goose That Laid The Golden Egg

Some years ago I purchased a shop with an apartment upstairs in Bondi. Over that time it’s produced awesome cash flow for me. A few years ago, with zoning and planning changes in the area, I was able to build up and adding two apartments above which added to the cash flow considerably. The original leases, of course, had built in rental increases, which, subsequently increased the value of the property over time. But when you start adding on apartments, you not only increase the …

The Time Factor in Commercial Contracts that Help You Make Money

  Use your time wisely I took a call from an old friend last night. She was asking me for some advice about a property that she wanted to buy. It was a small, old run-down house (I know right! The cheek of calling me and asking me about residential) that was going to auction at the end of the week. Small… old… ugly… with bonus asbestos. Not ideal – but it was cheap, so it had that going for it. She told me about …

Testing Your Resolve: Dealing With Commercial Agents

Estate agents are a different breed… I know, I used to be one. (I’ve still got my licence – but I don’t use it.) This is especially true of commercial agents. You’d think that if you were selling a property for someone… and of course trying to sell it TO someone, you’d make every effort to service enquiries that come in about properties you have in your books. After all when you sell a property as an agent – you make money. That’s how it …

What Happens When A Tenant Leaves

Commercial leases are typically 3 years… that’s the average. They usually have an option… say: a 3+3+3 lease. That means that after the first 3 years the tenant has the option of renewing two more times. Simple enough. It’s not uncommon for tenants to take all 3 options and even renegotiate the lease at the end of that period as well. If a business is going well it usually makes sense for them to stay put where customers know where to find them. But… As …

It’s not about floor space – it’s about opportunity

I’ve noticed a trend in (esp) capital cities… Not just here in Australia but all around the world. Now I’m finally taking a leaf out of this playbook and looking and putting it into action. What am I talking about? Tiny shops. There’s a movement to making shop spaces much smaller. I first really sat up and paid attention to this a couple of years ago when I was in Sydney looking at the Crumpler bag store. It’s not a big store, and the main …

A Crash Course In Honest Numbers

  Getting Honest with yourself about the numbers Over the weekend one of my relatives asked me to take a look at a couple of properties she was interested in buying. They were both commercial, which is why she had come to me. This wasn’t her first rodeo when it came to investing in property. I think she has a flat somewhere – but it was her first commercial. For that reason, she’d already done some research and due diligence. 1- She’d travelled to the …