Investing in other peoples big projects

Discussion in 'Innovative Property Investment Techniques' started by Daza, 3rd Jul, 2016.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Daza

    Daza Member

    Joined:
    1st Jul, 2015
    Posts:
    5
    Location:
    Vic
    Hey guys,

    I had an idea but i have no idea were to start looking. Is there anywhere you can invest your money in other peoples big commercial developments?
     
    Daza, 3rd Jul, 2016
    #1
  2. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,445
    Location:
    Melbourne
    DYOR but there are many options
    Syndicates like Peet or Open Corp
    Funds like Charter Hall
    Crowd Funding like Estate Baron
     
    Cactus, 3rd Jul, 2016
    #2
  3. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,572
    Location:
    Sid en e - olympic city
    Shares.
     
    dabbler, 3rd Jul, 2016
    #3
    Terry_w likes this.
  4. 158

    158 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,275
    Location:
    Brisbane, Qld
    158, 3rd Jul, 2016
    #4
  5. hash_investor

    hash_investor Well-Known Member

    Joined:
    11th Oct, 2015
    Posts:
    2,440
    Location:
    Sydney / Canberra
    The real estate ETF are exactly that. And they better than private investing for their openness and regulations
     
    hash_investor, 3rd Jul, 2016
    #5
  6. Daza

    Daza Member

    Joined:
    1st Jul, 2015
    Posts:
    5
    Location:
    Vic
    Wow thanks for all the quick replies. I guess the reason I'm asking about this is due to me building a house to live in I have been unable too find enough equity to buy another IP I have one but even that property has not really gainned any value in the last 4 or 5 years I have had it. I think I should cut my losses with that one and buy something in a better suburb.
     
    Daza, 3rd Jul, 2016
    #6
  7. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,935
    Location:
    Lower Blue Mountains
    Did anyone see the guy on shark tank trying to get that" group lending funding investing thingo" happening with small development projects.
    They ate him alive but interesting idea.
     
    bob shovel, 3rd Jul, 2016
    #7
  8. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,445
    Location:
    Melbourne
    Yes they torched him, the funny thing was there are several others already at market with this type of product and pay the same returns.
     
    Cactus, 3rd Jul, 2016
    #8
  9. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,935
    Location:
    Lower Blue Mountains
    Is there? I didn't know.

    They got him with the finance legalities which he was not prepared for but i thought there was potential... but unfortunately their script must have said to take him down
     
    bob shovel, 3rd Jul, 2016
    #9
  10. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,445
    Location:
    Melbourne
    I thought they were a little unfair. Like most products when they start out it was for wholesale investors only, and latter would be licensed for retail users.

    Estate Baron basically does the same thing. There are others not sure of their names.
     
    Cactus, 3rd Jul, 2016
    #10
    bob shovel likes this.
  11. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,527
    Location:
    Melbourne
    Hello, thank you for calling. Please press 1 to go to the main menu (this one), or press 7 to play these options again ............................... :D


    @Daza

    I believe pinkboy is alluding to my posts in
    What can u buy for 1 million in commercial and for what returns or secure income

    Since writing that post, I have gone quite heavily into the listed ones too (as there has been opportunities where the yield has been good on some REIT's with a decent portfolio), but if you are into new developments, then they are likely unlisted.

    Just out of interest, how "big" a project are you looking to put money into?



    The Y-man
     
    The Y-man, 4th Jul, 2016
    #11
    Plutus and 158 like this.
  12. Plutus

    Plutus Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    317
    Location:
    The North
    Which are your preferred listed funds?
     
    Plutus, 4th Jul, 2016
    #12
  13. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,527
    Location:
    Melbourne
    Any with a portfolio I'd like to have a share in AND gives me a decent yield :D

    I know the above sounds stupid (and probably is), but I look at the properties in the funds portfolio and consider if they are the sort of buildings I would buy if I had the money.

    So it would be pretty basic - government or big listed company tenants, staggered lease expiry, something with land value under it, buildings modified/designed for specific tenants etc.

    I also buy into shopping centres I hate going to because they are always crowded and I can't get parking no matter what part of the day I go.

    The yield is important though - I went in heavily earlier in the year because some of the really big funds (Dexus, Vicinity, etc) were yielding over 6% (assuming stable distribution). The prices have really shot back up now, so good listed ones with higher yield are a bit harder to find (even during the Brexit panic)

    I think I posted elsewhere that I often do the reverse to many - I see a building and say "Hey, I wouldn't mind owning this" and then going about finding if it is available in a listed or unlisted REIT

    The Y-man
     
    The Y-man, 4th Jul, 2016
    #13
    Plutus likes this.
  14. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,701
    Location:
    Melbourne
    Yeah obviously you don't know exactly how they edit it but he was like a deer in the headlights with some basic questions about the finance of it all.
     
    albanga, 4th Jul, 2016
    #14
    Cactus and bob shovel like this.
  15. DanW

    DanW Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    796
    Location:
    Sydney
    Trilogy funds have a new unlisted fund with only 20k minimum and over 7% yield.

    But I'm not too confident about the tenant as it's a Pty Ltd.
     
    DanW, 4th Jul, 2016
    #15
  16. Agent99

    Agent99 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    205
    Location:
    Adelaide
    DomaCom is offering crowd funding for Kidman Station :D
    Not sure if crowd funding is a good thing or not for property dont know the details. Did look at Open Corp who had some quite good developments underway or there are plenty of jv's with smaller groups.
     
    Agent99, 4th Jul, 2016
    #16
  17. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,445
    Location:
    Melbourne
    Just got an email from Hot Copper, DomaCom has just com out with an IPO for their fractional investing model.
     
    Cactus, 11th Jul, 2016
    #17