3 Compelling Reasons to Switch From Residential to Commercial

When you’re long term thinking you start to see real estate as the safest place to put your money. How many people spend their lives putting money into super and when it comes to retirement they’ve got hardly enough to live on because of inflation, market fluctuations and below average returns coming from a poorly managed super fund? Luckily we’re not in America where some retirement funds have dried up and vanished completely. Even if the market crashes, your property is still there and if …

The Biggest Fear To Commercial Investing and 4 Ways to Overcome It.

Do you want to know what I think is the single biggest fear that stops people looking at commercial property? If I hear one single reason why people don’t want to look at commercial, and it not only stops them looking, it stops most people from even learning how to overcome that obstacle… It’s like a completely paralysing, irrational fear. It’s this: What If I can’t find a tenant – What if it is untenanted. Obviously, it’s not ideal to have an untenanted property, but …

Cash Flow – It’s not all about lifestyle

I moved to Byron Bay over 17 years ago to do a renovation on a property. I never left.   For me, commercial property has allowed me to live a lifestyle that I wanted to live. To be able to get up and go for a surf in the morning, to live a healthy, stress-free lifestyle and work when I feel like it.   In fact, I love property so much it generally doesn’t feel like work. It’s as much a hobby or an art …

3 Important Questions to Ask For Creative Deal Making

The stats for how many investors are in Australia are out there, and they are quite high compared to many countries. Sadly though where they have drawn the line as to what is an investor and what is not is pretty low.   If you own an investment property – then you are an investor.   Well, that may be, but it’s also like saying if you own a car then you are a race-car driver. If you own a surf board, then you are …

Turning Due Diligence Red Flags Into Negotiation Pivot Points

When it comes to investing Due diligence is important… you don’t have to be a rocket surgeon to know that. However, it can be, especially at the start of your investing career, sometimes confusing and scary… How do you know what’s a deal breaker and what obstacles can be overcome and still keep the deal a winner? The answer is not always easy, but it comes down to research and good communication. Here’s an example I recently gave in a podcast of a property where …

Yields, Valuations and Hidden Opportunities

Investors will often hear the term Yield or Capitalisation Rate. (Cap Rate)   What is the difference between them?   Well not much…Essentially they are the same but are derived from different sides of the analysis.   From a valuation perspective in the case of an untenated property the rental is capitalised to determine a freehold capital value whilst a property that sells in the market with an income stream in place establishes the yield achieved.   Either way both terms establish the same thing …

How to Best Invest 800k – two case studies compared

If you’ve got some equity in your home… say $200k or more, chances are that you want to invest it to make your life better. That gives you a lot of options. Recently a saw a similarity in one of my own properties and another commercial deal I saw happen, they were both valued at a similar price so I thought it would make a good comparison of the choice at hand… whether to buy commercial or residential. Despite the perceptions of some (and my …

Focusing On The Basics Gets Results

I recently ran a contest from within the members of my Commercial Property Cash Flow Blueprint course. I wanted to hear stories of what people were doing with the information.   I was blown away with some of the awesome stories that came out; the action people were taking and the results they were getting.   I’ll show you some of them if you’re interested.   However, I wanted to break it down to basics…   Why?   Because that’s what these guys focused on… …

*Block* Thinking For Higher Commercial Returns

  Australia’s a funny country. They reckon property is a national pastime, yet only something like 6% of the country actually invest in property. Of that 6%, it’s only around 1% have more than 1 investment property. So what are the other 99% of Australians doing if property is a national pastime? My guess? Watching telly. They are watching ‘the block’ and ‘renovation rescue’ etc They are going down to Bunnings and buying tools so they can do little renovation jobs around the house. Even …

Converting Commercial Into Residential – What?

  Part of owning an investment property is working out how to get the best returns in any given market conditions.   Sometimes that means actually converting a commercial property into a residential property. So how can you take advantage of this trend?   In the words of one of the world’s most successful commercial real estate developers, Donald Trump; “If you’re thinking already, you might as well think big.”   At least that’s one his more quotable quotes. (There are plenty of others I’d …