Hi Guys
Thanks for the replies, they have been very helpful. Can you throw your eyes over this one and tell me what you think. As I said we do have equity/cash to use for a deposit but it will obviously tie up alot of our money in one deal. The cash flow on this is good but just wondering if anyone has any ideas on how to increase the equity. One person mentioned to me that yield is normally at about 9% and that if its higher than this you can refinance to get your money back out of the deal. Your thoughts?
For Sale at $215k
These 3 shops are 3 of 16 attached brick shops which make up this small suburban Shopping Centre. Other tenants include, newsagent, take away, bet, hairdresser, doctors surgery and drapery. Rent : $31,050p a + gst Outgoings : Council Rates, Water Rates & Insurance total = $6284 approx Price $215,000 (no gst applies as it is being sold as a going concern) All information contained herein is gathered from sources we believe to be reliable, however we cannot guarantee its accuracy and interested persons should rely on their own enquiries.
Delboy
Commercial property is more driven by rental yield than anything else, especially since most of your running costs are covered by the tentant as well.
If you can increase the rental return, you’ll increase the value and therefore equity in the process.
Ideas could include splitting one larger shop into 2 smaller shops with higher per metre rent; buying empty and selling or refinancing when fully tenanted…
just ideas.
Craig.
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Ask me about Joint Ventures earning 15+% COCR.
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