Righto, I have been trawling these forums for quite sometime now and the wealth of knowledge on here seems invaluable. I have around 200K in Capital in my current Ressie IP and around 50K savings and I really want to make the leap into commercial property already. After looking at the information posed it seems that lower value properties sub 1Mill seem to carry inherently more risk than your more expensive properties. So im thinking that a private syndicate would be a good option? Question is how do you go about finding likeminded people or who would I get in contact. or what companies are based in Perth that specialise in gathering investors?
Total Newbie
- Thread starter spanna
- Start date
Hi,
This isn't financial advise and if you're looking to enter into anything like this you should seek some. Along with your own DD on the offered syndicates.
The most common commercial syndicate I've seen is a set entry date, fixed sale date and you collect the rent periodically and the capital upside on the way out (if any).
They tend to not like borrowings going into these funds, but not impossible with some banks offering cash out facilities. They often have a minimum buy-in of about $100k (some funds offer less). In order to qualify for the fund you might need to be classified as a, "Sophisticated Investor". There will be management fees, they tend to be set and forget and you should be comfortable loosing the money if it all goes pair shaped.
I know of two gents who would be able to point you in the right direction. Feel free to shoot me a message if you want their details.
This isn't financial advise and if you're looking to enter into anything like this you should seek some. Along with your own DD on the offered syndicates.
The most common commercial syndicate I've seen is a set entry date, fixed sale date and you collect the rent periodically and the capital upside on the way out (if any).
They tend to not like borrowings going into these funds, but not impossible with some banks offering cash out facilities. They often have a minimum buy-in of about $100k (some funds offer less). In order to qualify for the fund you might need to be classified as a, "Sophisticated Investor". There will be management fees, they tend to be set and forget and you should be comfortable loosing the money if it all goes pair shaped.
I know of two gents who would be able to point you in the right direction. Feel free to shoot me a message if you want their details.
Thanks for the replies guys
well the syndicate that I would want would be pretty small i would say 5 people or so
just don’t know how to find the people!
I am young (23) and have a good income so am thinking of a smaller comm. properties catering to the mum and dad business..... Might be slightly riskier but there are some in Perth i have seen for about $500 in outer up and coming industrial type areas.... Does this sound wise???
well the syndicate that I would want would be pretty small i would say 5 people or so
just don’t know how to find the people!
I am young (23) and have a good income so am thinking of a smaller comm. properties catering to the mum and dad business..... Might be slightly riskier but there are some in Perth i have seen for about $500 in outer up and coming industrial type areas.... Does this sound wise???
Do a drive around in some of those areas and count how many "for lease" and "for sale" signs there are. If there are heaps, that's your answer (indication of low demand/overpriced/oversupply etc). If there are very few signs then vacancy may not be an issue.
