Commercial Property Negotiating: The Framework for a Great Deal (Part 2)

More questions you need to ask along the wayLAST 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…]

Commercial Property Negotiating: The Framework for a Great Deal

Asking these Key Questions will help you succeed as a Negotiator.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…]

Commercial Property: When Time Comes to Sell (Part 2)


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?

Traditional Marketing tends to adopt a “scatter gun” approach — which depends heavily upon expensive media advertising and a detailed Information Memorandum.

Whereas, Stealth Marketing is more like using a “laser gun” … focusing on your target market — using a personalised direct-email campaign; PLUS a dedicated website, to explain everything about the Property.

If you’d like, you can find out even more about Stealth Marketing. Meanwhile, you’re probably wondering …

What else should you Expect from your Selling Agent?

  1. Your agent should be able to explain the current state of the market to you in detail. As well as providing a firm estimate of the likely price for your property.
  2. But you’re entitled to expect a whole lot more. And so, by way of a quick checklist … a good selling Agent should also:
  3. Gather and collate all necessary information to ensure purchasers will be fully informed, and capable of making a decision to buy;
  4. Liaise with you and your lawyers, to make sure the documentation is fully complete and correct;
  5. Create a dedicated website (or at least several webpages) for your property — making everything available to prospective buyers, in exchange for their contact details.
  6. Co-ordinate the overall marketing campaign: Mailing out brochures and letters (or preferably, sending out personally-addressed emails, with direct links for the website) to those potential purchasers known to be currently active in the market;
  7. Try to secure editorial coverage within the various media being used;
  8. Qualify and record all the enquiries that are generated throughout the marketing campaign;
  9. Arrange for the various inspections to take place;
  10. Prepare prospective buyers for the actual Auction, or Tender;
  11. Keep you advised as to progress, on at least a weekly basis;
  12. Ensure all preparations are made, so that everything runs smoothly on the day of the Auction, or the close of Tenders;
  13. Conduct the Auction (or open the Tenders with you); and attend to signing of the contracts with the successful purchasers;
  14. Depending upon local requirements, ensure an early release of the deposit;
  15. Follow up with your lawyers to ensure that the documents have been executed to their satisfaction; and
  16. Once the deposit has been released … account to you with the deposit monies, 30 days after the sale — setting everything out in a detailed statement for the sale.

Bottom Line: Unless your selling Agent is proposing to undertake these vital 16 steps on your behalf … then you should be looking elsewhere.


Commercial Property: When the Time Comes to Sell … (Part 1)

WHAT YOU need is a strategy to make absolutely sure you obtain the best possible price when you sell.

You need to put your Buyers under CompetitionAnd 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.

Choosing The Best Method of Sale

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…]

12 Fundamentals You Need to Follow … When Buying Commercial Property

There are 12 Rules you need to follow to successAS YOU WILL appreciate, being able to sleep at night is one of the key objectives for any Commercial property investor.

And that’s what many property investors refer to as staying below your “Threshold of Insomnia”.

There can be several things that might cause you to lose sleep. One is over-borrowing; and the others are making a poor assessment of the market and the property itself. [Read more…]

What Makes You a Successful Commercial Property Investor?

 You need to determine your underlying Investment PrinciplesWHEN IT COMES to Commercial property investing, have you ever actually sat down and analysed your principal aims?

And have you then matched them against the properties you already own — or those you may now be considering?

Basically, you’ll find most people purchase Commercial property for one (or more) of four reasons. [Read more…]

Your Success in Commercial Property Begins With The Correct “Investment Vehicle”

Your need to choose the right Investment Vehicle from the outset

BEFORE YOU purchase your next Commercial property, you do need to take some advice on which purchasing vehicle is right for you — because it’s definitely not ‘one size fits all’.

Tax Considerations

The Australian Tax Office is quite happy for you to arrange your affairs so as to minimise the tax you pay. In other words, it is quite legal for you to avoid tax — you simply cannot evade it. [Read more…]

Trusted Consultants ~ Part 4
Validating Your Purchase

MY ADVICE to clients is to always accept whatever the vendor is telling you about his or her property, as being “true”.

Then simply “reserve your right” within the Contract, to validate all the wonderful things you’ve been told about the Commercial property you’re about to purchase.

You see, most vendors believe their property to be perfect. And will therefore raise little objection to the final contract giving you a Due Diligence period … to confirm the overall status of the property.

Nash Logo [Read more…]

Commercial Property: Things You Need to Know

You cannot go anywhere nowadays, without somebody offering you their advice about Commercial property.

And it’s hard to know whether they are giving you good information, or just passing on ideas they have picked up on from rather dubious sources.

A thorough Due Diligence is so importantBut once you understand that Commercial property and Residential property completely different, you then begin to understand how the commercial market actually works.

That’s why these articles are intended to give you the real information — to help you become an expert on the subject.

So let’s start with doing homework properly. [Read more…]

Do Banks Use a Formula When Lending on Commercial Property?

Getting the Money you need for your Loan

BANKS have a variety of ways of analysing a Commercial property; but there are a few guidelines they all tend to use.

For them, the most important number is the property’s Net Operating Income — which is basically rental minus expenses. As simple as that may seem, the calculation can vary dramatically from lender to lender.

Calculating the Net Operating Income is fairly straightforward. [Read more…]

Negotiating to Buy Commercial Property

WHENEVER you find yourself with Power during a negotiation, you are then in a position to have far more control over the ultimate outcome.

Negotiating requires Strategy & TacticsHowever, as you can appreciate, Power can take on several forms. And just to give some examples, you could have the … [Read more…]