The other thing would be to have capital gains tax removed once you have owed the property for a certain number of years. That way we could encourage long term investing and help to provide for peoples retirement.

The fact that 60% commercial loans were not available to foreign nationals 112 months ago shows that market conditions have now changed. On the ground we are hearing about improved conditions and demand all the time. Remember that commercial buildings can be
an apartment complexes with over 5 apartments. Now if investors were paying cash 12 months ago and today we can get 60% finance that means that cash on cash returns are far higher and should lead to more demand and more solid prices.

• This reply was modified 10 years, 7 months ago by  Nigel Kibel.

Hi Jay

I agree with you 100%

I think value add is the way to go. There are always top quality commercial deals available. However as the market changes we have to keep up with that and offer our clients solutions

Jeff

have you been on the ground in ohio and seen the deals there

i am currently in orlando with clients

Currently in Orlando Florida

Great market here

https://www.youtube.com/watch?v=KaIarcW477E

Above is a webinar on a deal we did a few months ago. It was an office building for 1.42 million with $660,000 and the balance with vendor finance at 4.75% for 3 years. I really like apartments but this was such a good deal. We have a government tenant on half rent fr 12 months and need to let just another 5000 square feet out of 37,000 the building will then be returning 35% cash on cash. We are currently looking at a large apartment complex.

With the above deal we put together a master LLC with partnership agreements and each individual had their own LLC. We own a property management company so we manage the property as well.

Like you guys my first thing is to look after the client. I have clients wanting to do flip deals we buy from the bank and make them money. I am not concerned about the companies pulling out most of them target people without money. If I did not have a business partner I trusted 100% I would not be dealing in this market. If you deal with Jay or Engelo or my company you will know that we are transparent and have our clients best interests at heart

As I have mentioned most of the companies have been promoting to people without money. So if you cannot buy in Australia buy some cheap crap in America. Now that the dollar has dropped and many of these people have lost there money

If you dont have $60,000 to $100,000 do not waste your time.

We partner with our clients to make money and help them build a portfolio. In my view America is an exciting market to be in but you need a plan and vision and also you must be working with the right people on the ground.

Well Jay  I do not agree with you. We focus on Commercial property often with deals with upsides. Florida has fallen a long way and is rising. Even if it just goes back to normal levels. The deals we have been doing have been great. However we look for opportunities and not just off the self deals.

In terms of Australia I think the market here is shaky, although in theory Brisbane looks good we have been trying to buy development sites but most seem over priced. In America the market has lifted off the bottom and with finance now available you can get some great cash Flow deals. Most of the marketing companies target cheap housing. So naturally when the dollar falls that market starts to fall. However i believe you have to look at quality deals. The fact that you can leverage will make a big difference.

It clearly depends on how much money you have. However in the American market .you can only get private funding in houses under $100,000. Once we look at commercial property which can include apartment complexes we can look at 60% non-recourse finance which means that the loan is only on the asset at rates of around 5%. Now when you consider that the net returns are generally 10-15% . From the banks point of view they deem these investments to be less risky than a single family home and generally the capital growth will be higher as well

I think what happens is that markets change. It is a matter of looking for the opportunities.

I am finding that there are still great cash flow deals in Florida especially with commercial and apartment complexes where you can leverage by borrowing 60% on a non-recourse loans.

Now although I agree with your comments on Brisbane generally when I am looking at development projects in many cases they are already over priced.

In The United States you have a recovering economy and I believe that with commercial finance in place I think this creates new and exciting opportunities.

Yes there is a little less interest however much of that interest was from people looking at the bottom end of the market I am finding that most of my investors are more sophisticated and can see the opportunities.