All Topics / Commercial Property / Where do I start?

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  • Profile photo of CameronCameron
    Participant
    @camm22
    Join Date: 2017
    Post Count: 3

    Hi all,

    I’m new the the forum! I’m hoping someone might be able to point me in the right direction.

    I don’t really know much about commercial property/investing, where’s a good place to start?

    Any good books or courses that you can recommend?

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 284

    Cameron, that question is so broad. what is the goal>??

    Jaxon | Jaxon Avery – Financial Adviser
    http://www.jpafinancialservices.com.au
    Email Me | Phone Me

    JPA Financial Services Pty Ltd

    Profile photo of CameronCameron
    Participant
    @camm22
    Join Date: 2017
    Post Count: 3

    Hi Jaxon,

    Thanks for your reply.

    I’m not really sure? I guess the ingoings and outgoings, how to find a good commercial property and maybe the things to look out for/ make note of?

    The goal is to learn as much as I can and explore the different types of property investment.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Cameron,
    I have never done a Commercial deal either, but a seminar I atteneded a few weeks ago certainly piqued my interest. In essence, the presenter was describing how she was buying small Commercial spaces (e.g. coffee bar, or restaurant sizes) and getting enormous returns. I heard that she was pulling like 9% return, with the tenant picking up most of the expenses that would be on a landlord’s plate when doing residential investing. So, she was clearing as much as she was paying on the mortgage. In essence, she was bringing in cash like a bank.

    Imagine paying $30k a year on a mortgage, and receiving $60k a year for you to pay it. Awesome eh?

    Now hey, these seminars all have a “sign-up” thing at the end – but it is worth going along to check them out anyway, ‘cos here’s the thing. Let’s say this presenter is offering you her assistance in finding deals that you can buy, and she will assist – and all it costs you is $5k upfront? Is that a good deal?

    If it led to just ONE such deal as above, hasn’t that $5k led you to putting $25k a year in your pocket? Now, there could be lots more such seminars out there – I don’t know. But I do know that this lady is still doing these seminars right now. Her name is Helen Tarrant.

    I was impressed by the numbers mentioned by her – other than that, I make no recommendation at all, as I didn’t sign up with her – but I did enjoy the evening taking a look at an unfamiliar subject through her eyes.

    Perhaps something like that will give you a bit of an idea of HOW these deals are put together. Oh, and also, you are likely to meet up with other people who are not watching TV that night, but (like you) are endeavouring to learn a little more to help their wallets. Some might even already be successful Commercial property investors. She will likely ask “Who owns Commercial Property already?” Approach those people afterward and say Hi !! Networking can lead to heaven knows where. Enjoy,

    Benny

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 284

    Benny and Cameron I got a property going through settlement atm that is a 10.3% return. (Regular IP)

    also I only had to put $25k into it including expenses. also this isnt a seminar trying to sell you anything this is me who is doing this in their own life.

    you want to have 40% put downs for commerical, dont start out in commercial unless your well educated or running a business, tenants are hard to come by in certain cases, the returns are far better than 9% but also there can be years without rent.

    Cam. I am going to guess you havnt built a couple mil as an asset base, Dont focus on commerical unless you have someone whos well versed, or you become incredibly knowledgable. or understnad the area and a million other aspects.

    Read books, study these forums, study nathan birch, read steves 0-135 book, then do it all again over and over till you know everything in and out. get to a point where you understand the who what when where and why and the risks.

    Jaxon | Jaxon Avery – Financial Adviser
    http://www.jpafinancialservices.com.au
    Email Me | Phone Me

    JPA Financial Services Pty Ltd

    Profile photo of CameronCameron
    Participant
    @camm22
    Join Date: 2017
    Post Count: 3

    Thanks again Jaxon, you guessed right.

    I’m only a young whipper snapper, so i’m just starting out and trying to gain as much knowledge as possible.

    I appreciate you both taking the time to reply.

    I’ll look into Nathan!

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