I'm a relatively newcomer to Commercial Property after having mainly invested in Residential.
Using information gathered from others I am starting to educate and re-educate myself.
Here I will start to compile a process (and some options) I hope to use in finding my next Investment. I hope to receive helpful information from others which in turn with help more people at the same time when they read these posts.
1) Make a list of Commercial Investment Types to consider-
a) Industrial
b) Office
c) Retail
I will be looking for Commercial Industrial or Commercial Office.
2) Strata titled or Freehold units.
3) New or near new (For best Capital Depreciation)
4) Tenant or Untenanted
5) Something I can add value to (Even if it is just purchasing a bare shell and doing the fitout myself) (Should make some savings doing this)
6) Purchasing something older that can be improved or redeveloped in the future.
7) How much I can afford
8) Attend Auctions to look, listen and learn
9) Contact Commercial Real Estates and tell them what I am looking for.
10) Search the Commercial Real Estate websites for properties.
11) Read the Newspapers for Commercial Real Estate.
Due Diligence when I find a property to consider purchasing.
a) Compare price on similar properties in that area.
b) Lease period remaining (If Tenanted)
c) Quality of Tenant (How long in business and their future plans)
d) Look for the best % net return of at least 7.5% - 9%
e) Holding cost with and without a tenant in place (Can I afford it if I can't find a tenant or the tenant leaves)
f) Compare rental return with other similar properties.
g) Use worst case scenario figures and stick to them (If things turn out to be better than what I planned for, then more power to me!)
h) Get everything down on paper if possible
Once a suitable property is found and the process of purchase begins.
a)Keep an eye on everything and everyone every step of the way until settlement.
To Be Continued......................................
I would like to hear from others and what they think of my list and anything they wish to add and what process they have used to find suitable properties.
This is a working list which I hope to add to and use and continue to refer back to until it becomes second nature.
I hope I haven't offended any expert CP investors as my intention here is to put down my absolute basic requirements and see what feed back I get.
I don't claim to be an expert, and I understand CP investing can be a lot more complicated than just my basic list, however my intention here is to get back to basics and build from that.
I also want to see if I am on the same page as others in my similar position and that I am heading in the right direction.
Regards,
Paul
Using information gathered from others I am starting to educate and re-educate myself.
Here I will start to compile a process (and some options) I hope to use in finding my next Investment. I hope to receive helpful information from others which in turn with help more people at the same time when they read these posts.
Here is the process I will use:
-This list will be a work in process (and incomplete list) which I hope others will add their input and advice to-1) Make a list of Commercial Investment Types to consider-
a) Industrial
b) Office
c) Retail
I will be looking for Commercial Industrial or Commercial Office.
2) Strata titled or Freehold units.
3) New or near new (For best Capital Depreciation)
4) Tenant or Untenanted
5) Something I can add value to (Even if it is just purchasing a bare shell and doing the fitout myself) (Should make some savings doing this)
6) Purchasing something older that can be improved or redeveloped in the future.
7) How much I can afford
8) Attend Auctions to look, listen and learn
9) Contact Commercial Real Estates and tell them what I am looking for.
10) Search the Commercial Real Estate websites for properties.
11) Read the Newspapers for Commercial Real Estate.
Due Diligence when I find a property to consider purchasing.
a) Compare price on similar properties in that area.
b) Lease period remaining (If Tenanted)
c) Quality of Tenant (How long in business and their future plans)
d) Look for the best % net return of at least 7.5% - 9%
e) Holding cost with and without a tenant in place (Can I afford it if I can't find a tenant or the tenant leaves)
f) Compare rental return with other similar properties.
g) Use worst case scenario figures and stick to them (If things turn out to be better than what I planned for, then more power to me!)
h) Get everything down on paper if possible
Once a suitable property is found and the process of purchase begins.
a)Keep an eye on everything and everyone every step of the way until settlement.
To Be Continued......................................
I would like to hear from others and what they think of my list and anything they wish to add and what process they have used to find suitable properties.
This is a working list which I hope to add to and use and continue to refer back to until it becomes second nature.
I hope I haven't offended any expert CP investors as my intention here is to put down my absolute basic requirements and see what feed back I get.
I don't claim to be an expert, and I understand CP investing can be a lot more complicated than just my basic list, however my intention here is to get back to basics and build from that.
I also want to see if I am on the same page as others in my similar position and that I am heading in the right direction.
Regards,
Paul
