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 Magic Of Thinking Big And Taking Your Time

  There’s a book I read years ago called “The magic of thinking big.” After all this time I don’t recall the details, but the gist was that when you think big, it forces you to think different questions, take different actions and ultimately… get bigger results. Even if you don’t get the exact BIG results you were shooting for you’ll still get bigger results than if you think small, ask smaller questions and take smaller actions. I’m telling you this because this morning I …

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 …

Valuing Vacant Properties

Buying a vacant commercial property is not something that I recommend for most commercial investors. I’ve only done this a few times… Although it was very successful when I did… But that’s because I had the basics covered and I understood how to work out what the property was really worth. When a commercial property is tenanted, it’s very easy for a valuer to come up with a true and accurate valuation… That’s because the value of a commercial property is intrinsically tied to its …

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 …

NEGOTIATION STALLED? Here’s how to breathe new life into it.

From time to time when you’re negotiating on a property purchase negotiations can stall. Maybe your offer is too far from what the vendor wants, or maybe you want a “Subject to” clause that they don’t understand or are unwilling to grant. Luckily commercial negotiations can often take quite some time, running over weeks or even months so you may have more time than you are used to, to work through the details of the deal. Here are a few ideas use could use to …

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 …

Why buying remotely is stupid – It pays to go look at it.

I’ve seen quite a few deals where people have bought commercial properties based on the numbers and images from the agent. While, as you know I’m all about the numbers… My basic rule of thumb is the numbers have to work… Never buy based on gut instinct or anything like that. But here’s the deal. If the numbers work… you still should go an inspect the property. Over the last few months, I’ve been looking for a shopping centre to buy. I’ve made an effort …