Insider Tips to Help You Discover How to Succeed with Commercial Property
WHENEVER YOU embark upon a physical Due Diligence for any Commercial property, there are five key issues on which you should focus. And all of them need to be fully explored.
Depending on the size and type of the building, you may well require a more-detailed analysis. But for the time being, this will provide you with a basic checklist. [Read more…]
AS YOU DISCOVERED last week, carrying out a proper due diligence is vital for any significant Commercial property purchase.
And that’s part of our role … assessing the overall structure, along with the various building services — simply to ensure they are all in good order.
However as time goes by, you may well have the need to upgrade or extend your building … if only to meet the changing needs of your tenants.
Yet this is where many investors seem to get into trouble — by undertaking something well beyond the limits of their capabilities. [Read more…]
OVER THE PAST few weeks … we’ve spent some time talking about the Anatomy of a Commercial Property Deal … how to to find Top Commercial properties and … the need for proper Due Diligence.
However, it’s probably worth showing you how to establish what funds you actually have available to invest upfront.
It’s certainly not a complicated process — but a vital one , nonetheless.
You see, many investors tend to overestimate (and will often even underestimate) the amount of the funds they may have available. And that immediately impacts upon the value of the property you can acquire. [Read more…]
WHENEVER you’re looking to acquire a Commercial property for $1 million or more, you should undertake thorough due diligence on it … before making a final commitment.
However, some investors new to Commercial property generally find themselves with a dilemma:
So, let’s explore both of these approaches in a little more detail. [Read more…]
SOME WOULD-BE investors never get around to taking the plunge into Commercial property.
They certainly know quite a lot, because they read plenty of books and regularly attend seminars. But even so, they remain what are affectionately called “Armchair Investors”.
There is a certain hesitancy that sometimes accompanies the transition from Residential to Commercial property investing. [Read more…]
SO LET’S GO right back to basics … and just break down a Commercial property investment into its fundamental components.
You see, very few investors seem to spend enough time to fully understand what’s involved.
And you may care to explore each of these aspects in a little more detail. [Read more…]
WITH THE PROPER guidance, Commercial property will prove to be a very rewarding investment — and in different ways.
However, there are several Golden Rules you really should keep in mind. [Read more…]
YOU’RE EXCITED … having just purchased a Commercial property investment. But what happens from here on, effectively determines just how profitable your acquisition will be.
Therefore, choose wisely when selecting your property managers — to ensure they share the same aspirations as you do. [Read more…]
AS YOU WILL quickly discover, finding suitable Commercial property investments comes down to a numbers game. And interestingly, many people consider these current times to be a buyers’ market.
However, as a serious investor, you will have found it difficult to identify many really top-notch properties right now. And at the moment, this is probably your #1 concern. [Read more…]
LEAVING aside things like projected cash flows, depreciation and taxation issues for moment … let’s look at some of the key factors that determine whether or not the property itself will stack up.
What follows is basically a checklist of the various aspects to investigate, when you start looking to purchase a Commercial investment property.
And, while this is not intended to be an exhaustive list, it should give you some insight into the depth of analysis you’ll need to undertake … as part of your due diligence process. [Read more…]
MANY PEOPLE make the mistake of carrying out the due diligence study BEFORE they acquire their commercial properties.
This can end up becoming a very expensive process — because you can often miss out on the property, whenever someone else snaps it up, before you complete your study.
Therefore, the secret lies in ensuring you negotiate a deal — where your due diligence occurs AFTER you have tied up the property, under a binding contract of sale. [Read more…]
WHEN IT COMES TO MAXIMISING your property income, depreciation is a powerful tool that is often overlooked.
As a Commercial Investor, you have a unique advantage over those investing solely in residential properties.
FINANCIAL INSTITUTIONS HAVE a range of methods for evaluating commercial properties, but there are some general guidelines that they typically follow.
One of the key numbers that banks focus on is the property’s Net Operating Income (NOI), which is essentially the rental income minus expenses.
WITH EVERY NEGOTIATION, you always need to be thinking on your feet. And here are several simple Tips to help you do just that.
WHEN YOU EMBARK on your journey as a property investor, it can be overwhelming – with a flood of information and diverse opinions. To help simplify the process, here are five essential tips for new (and seasoned) investors.
IT DOES NOT MATTER whether you’re an investor or an owner-occupier, there are several important factors to consider when purchasing a commercial property to ensure you make the right choice.
In a previous article, I shared a handy App to assist you in shortlisting potential properties. If you haven’t already downloaded it, simply click on the HiReturn Filter over on the right, to install it on your tablet or mobile device.
THERE IS A BELIEF among many experts that a surge in the stock market typically precedes a recovery in the commercial property market by about six months. And the start of this year saw equity markets gaining some momentum.
I HAVE BEEN ASKED countless times about the secrets to a successful negotiation. And I want to share with you the key elements to help make your negotiations effective.
But first, just watch this short video to gain a quick understanding of these three essential elements that form the foundation of every negotiation.
