IT’S INTERESTING how many investors seem to “graduate” to Commercial property, after first starting out with residential property.
But when you think about it … that’s probably an understandable progression.
Once you grasp even the basics of Commercial property, you quickly discover its NET yield is 2 to 3 times that of residential property. But more importantly, your tenants seem to stay 4 to 5 times longer. [Read more…]
There is no doubt, you can certainly accelerate your overall return from Commercial property, by gearing up with a loan.
Even so, you should FIRST make sure that you can say “Yes” to each of the following questions. [Read more…]
IN THE CURRENT market, the type of questions you’ve posing to me have mainly related to … “How do I actually make a start with Commercial property?”
And obviously, behind that question lies a desire for you to
become Successful — when it come to investing.
But today, more than ever, you need to get the fundamentals right. Mainly to ensure, you always have a solid base … one you can count on, and also one you can build from.
And it really doesn’t matter just how successful you may become … there will always be times when you need to return to a sound basis, for all your decision-making.
Therefore, you need to have in place a source of encouragement — to help you meet life’s inevitable challenges along the way.
Bottom Line:
What I’ve recently prepared is a short series of complementary Training Videos — which will help you to lay that solid foundation you need.
Then, I show you how to confidently launch yourself as a
Commercial property investor.
So, why not watch this 1st Video right now?
And please be sure to leave your comments and questions afterwards.
IF YOU have invested in the share market, you would most likely be familiar with the so-called “Investment Clock” — which attempts to show how the economic cycle influences equities.
In essence, an over-heated economy is followed by rising interest rates and falling share prices. Then, as the economy declines interest rates start to fall and share prices rise again.
Some analysts have tried to devise a similar “clock” for Commercial property. But unfortunately, the results have generally not been useful. [Read more…]
AS AN INVESTOR in Commercial property, you need to fully appreciate where your profits actually come from.
In most cases, the key lies with your tenants … who provide you a steady stream of income.
So finding reliable tenants is crucial; which means understanding their needs, and providing them an suitable premises.
Therefore, it is essential that you continually anticipate exactly what your tenants are expecting. [Read more…]
IN SIMPLE terms, your Depreciation falls under two separate (but related) categories:
And not everyone is in a position to acquire a stand-alone property.
More often than not, you’ll be looking to purchase a “strata-title” Office or Warehouse — involving an Owners Corporation and some common-area property.
As such, you may not be aware of the full extent of what you are entitled to, by way of your Depreciation claims.
However, by having a tax depreciation schedule professionally prepared, you can significantly enhance the overall return on your investment. [Read more…]
OVER THE past couple of weeks, you’ve quietly worked your way through the first 14 questions … as part of your prep-work for each Negotiation.
And today, you’ll be covering the final 6 key questions — to help ensure your success.
So, here’s what you also need to be asking: ARE YOU …
You simply can’t afford to lose your temper … and still retain respect, from the other party.
People can be insulting, and it is all too easy to respond aggressively. But sometimes they’re just doing that to test you, or your patience. So you may simply need to suggest adjourning the negotiations … to give them a chance to regain their composure.
If it is a genuine outburst on their part, they can cool down. And if it’s merely a ploy … then, they’re going to look rather stupid.
You need to try and understand the benefits and consequences for each party in the Negotiation.
Only then, can you properly decide when (and how) to make any concessions; also when (and how) to stand firm, with your own needs and requests.
Work on becoming comfortable with silence. Because, most negotiators feel the need to jump in with some comment, whenever there is an awkward pause in proceedings.
But, whenever the answer to your question will actually commit the other party … say absolutely nothing more. Otherwise, all you’ll get is further conversation.
Never commit on a major point, unless you are quite sure of your answer and you’re on solid ground.
No matter what the pressure … all you need simply say is: “I may need to sleep on that, I’ll get back to you tomorrow”.
By choice, negotiations should commence face-to-face.
However as things progress, you’ll sometimes find more progress can be made by phone — because it takes out all the emotion, and allows you to simply focus on the rational items, rather than any personal issues.
Sadly, too many people leave the negotiating table with only a handshake. A short summary (by way of “heads of agreement”, a confirming letter or an email) is all you need to tie down the deal.
You need to have some form of documentation at the end, if this is a serious negotiation.
What you might say is: “Let’s make a few notes on the points we have agreed; for each of our files and just initial it.”
This is vital. Because, it provides a basis for the contract to be prepared. And when the contract arrives, you can confidently say: “That’s not what was agreed.”
If you both have the same set of notes, it’s easy to verify that the contract has been drawn incorrectly.
Otherwise, you’ll quickly discover how recollections can often change — between reaching agreement and the formal contract emerging. As a result, you are forced to restart the negotiation again.
Bottom Line: Hopefully, this has helped you to gain a complete “helicopter view” of how each component of a Negotiation ties in with all the others.
And with the framework at your fingertips, you are now better equipped to tackle your next negotiation.
LAST WEEK, we made a good start by scoping the first 8 questions you need to keep asking yourself … as part of your prep work for each Negotiation.
So let’s pick up from where we left off — here your next 6 questions. And you’ll recall that before (and during) your negotiations, you need to be asking: ARE YOU … [Read more…]
EVERY NEGOTIATION can be very easily broken down into its component parts … once you understand what is really going on.
Over the next few weeks, I’ll be posing 20 questions — which (when taken together) are intended to help you fully grasp everything involved. [Read more…]
Last week, you explored the various Selling methods available to you — which ones were the preferred, and why.
Plus, you were also given some initial insight into the benefits of using Web (or “Stealth”) Marketing techniques. But how does this differ from traditional marketing for Commercial property? [Read more…]
WHAT YOU need is a strategy to make absolutely sure you obtain the best possible price when you sell.
And you do this by creatively targeting investors, developers and potential owner-occupiers — through adopting a broad (yet cost-effective) marketing campaign, which draws out those buyers best suited to your property.
The #1 secret for successfully selling any property is to promote the feeling among your prospective buyers that “they could miss out”.
However, this is difficult to achieve with a straight, Private Sale. In fact, this method generally takes far longer to achieve a result — as it fails to create any sense of urgency in a buyer’s mind. [Read more…]
