Buyers agent - commercial property

Hi Zdravko looking into a BA for CP did you end up buying and using a BA ?

 

I have used Steve Palise and now using Helen Terrant to find another. Helen is like a terrier on a bone negotiating a deal. Highly rate her

 

Hi AJ, I've spoken with Mish Daniel from Revolve Commercial. Seems like she knows her stuff. Didn't end up buying as I felt there was too much risk atm targeting entry level properties. So the plan from here is to put together a larger deposit (500-700) and aim for a better quality asset. Still planning to use a BA

 

Thanks for the update.
When you say entery level what price range are we talking about? And the decision to out together a higher deposit, price bracket are we talking about?

Im still not really sure if i should keep on investing in resi or make a move to commercial.

 

I would way anything under 700k, some would argue 1 million. Either way, with the extent of demand and competition in the sub mil bracket atm makes it too risky for me (as in ending up with dud). With a deposit of 500k-600k you can get a better quality asset/tenant for around 1.5mil. I'll be relying on my resi properties to get me there (deposit wise) but long term, looking to transition into commercial

 

How did you go with Steve Palise?

Any reason you changed to Helen?

 

Steve lives overseas which is a PITA when communicating. Helen will take calls and meeting anytime you want, weekends, late at night etc which is great.
Helen's negotiating skills are far better and don't get me wrong I'm happy with the deal I got with Steve but feel I would have landed the same property cheaper with Helen

 

Thanks for the honest response, what kind of property did you get with Steve?

Have you considered Rethink? I've noticed they are employing some very well versed people in their team in the last few months b

 

Commercial in Perth.

Yeah I was talking to Scott and Steve at the same time prior to selecting one. Scott was very easy to talk too but Steve was the better salesman. It is interesting to see how different the two BA's I used. Helen is very much about helping you and getting your strategy right for your situation. She has been awesome so far.

 

Thanks mate. Would love to see how you go with her.

What type of property/ budget are you looking at if you don't sharing?

 

warehouse/retail, around 3.4M

 

Three million pa plus net rental will give you a decent size complex to work with.
If you choose a complex with potential to improve you will have a managers job for life

 

That's awesome. Very keen to see how you go, if you are happy to share.

I'll be looking at CIP in the next 6/12 months.

 

I went in partnership with my brother for this one. Too much risk for me to go single. Yield is just over 7% and it has a lot going for it but also has some hairs.

 

How many tenants?

 

two but both companies have same directors, and those directors are also the seller....the hairs

 

I always wonder with sale and leaseback whether the vendor actually do better in the long term selling the property to invest in something else.
Talking with one of my tenants who has done a sale and leasebacks (they have done several) the best benefit is where they purchase a vacant property and put themselves in as a tenant .

 

Andrew I'll continue this via PM as to continue I need to delve deeper into the deal and are still under DD

 

probably a stupid question, but when you say 'three million pa plus net rental' im bit confused, what does 'pa' refer to ? also, that sounds like your refering to rental income, but they were saying three million purchase price ?

 

he basically means a property 3M plus will yield good pa net rent, pa being per annum