Just had an offer accepted on a commercial

Discussion in 'Commercial Property' started by ellejay, 1st Nov, 2016.

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  1. ellejay

    ellejay Well-Known Member

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    But I don't want to jinx it by saying what, or where :) Serious face on now for the next couple of weeks whilst trying to a) find big deposit b) secure finance c) check it's not a lemon. Everyone around me looks relaxed and carefree (though probably not) and I can't say a thing because most people would be shocked/amazed/think I'm mad/or rich and I only need understanding positive people at this stage while I'm feeling a bit..:eek:
     
    Last edited: 1st Nov, 2016
    ellejay, 1st Nov, 2016
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  2. samiam

    samiam Well-Known Member

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    Exciting!! Please keep us posted how you go when you can! Yield? Existing long term tenancy?
     
    samiam, 1st Nov, 2016
    #2
  3. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    Congratulation on the purchase, commercial finance is a whole new world!
     
    Simon Moore, 2nd Nov, 2016
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    Told you thats the direction you should be going :)
     
    D.T., 2nd Nov, 2016
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  5. ellejay

    ellejay Well-Known Member

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    Yep, I'm freakin' out a bit about the finance. Sucking up to the bank as we speak.
     
    ellejay, 2nd Nov, 2016
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  6. ellejay

    ellejay Well-Known Member

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    Didn't have any choice, reached my lvr limit in NZ for residential.
     
    ellejay, 2nd Nov, 2016
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  7. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    The bank will destroy you on interest rate and terms, the smaller guys actually compete in the commercial space - so many people just go straight to the bank and pay high 5s low 6s and say 'it's commercial'. When then could be getting mid 4s with the smaller players.
     
    Simon Moore, 2nd Nov, 2016
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  8. Sackie

    Sackie Well-Known Member

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    Congrats and good luck with it @ellejay !! Grovelling to the bank is always fun aint it :D

    How long DD do you have? Any subject to clauses?
     
    Sackie, 2nd Nov, 2016
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  9. ellejay

    ellejay Well-Known Member

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    15 days for finance and dd. Lots of dd to do on the building.
     
    ellejay, 2nd Nov, 2016
    #9
  10. ellejay

    ellejay Well-Known Member

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    It's in NZ, which raises a couple of issues around finance. Plan is to sell some ips, pay this down and live off the income for a while.
     
    ellejay, 2nd Nov, 2016
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  11. Sackie

    Sackie Well-Known Member

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    Hope it's a great outcome for you! Can't wait to know. Congrats again. Love seeing people go against all the negative, defeatist nonsense and just make things happen like you're doing.
     
    Sackie, 2nd Nov, 2016
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  12. hobo

    hobo Well-Known Member

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    I'm guessing this settled, @ellejay? Did it all go smoothly? Happy with the purchase?
     
    hobo, 23rd Dec, 2016
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  13. Sackie

    Sackie Well-Known Member

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    Yup also eager to know how it went! Hopefully all good?
     
    Sackie, 23rd Dec, 2016
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  14. Perthguy

    Perthguy Well-Known Member

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    Perthguy, 23rd Dec, 2016
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  15. MTR

    MTR Well-Known Member

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    cant wait to view the numbers etc. if you want to share.

    Nice one:)
     
    MTR, 23rd Dec, 2016
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  16. Sackie

    Sackie Well-Known Member

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    And the line grows..:D
     
    Sackie, 23rd Dec, 2016
    #16
  17. ellejay

    ellejay Well-Known Member

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    Unfortunately that one fell through at dd stage as the building didn't have the required code (NZ regs). I'm now looking at buying 8 storage units in NZ. Price agreed $478k. Yield works out 7.5 net, so not amazing but will be zero maintenance and hassle. All units rented to local businesses. Just seeing this as minimal spend and minimal risk cashflow stream to complement the others.

    Now trying RAMS for commercial no 2.
     
    ellejay, 23rd Dec, 2016
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  18. Sackie

    Sackie Well-Known Member

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    Great stuff @ellejay, main thing is you didn't give up and just went on to the next deal. I firmly believe the next deal is always just around the corner. Wish you all the best with it and hope its a deal closed for you, otherwise, just peek around the corner :)
     
    Sackie, 23rd Dec, 2016
    #18
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  19. Beano

    Beano Well-Known Member

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    With all the money you are making now how long do think it will take to fill your storage units with bank notes and you need to buy another 8 more units ?
     
    Beano, 23rd Dec, 2016
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  20. ellejay

    ellejay Well-Known Member

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    Ha ha, yep but I have to fill up my biscuit tin first then I'll move on to the units :D
     
    ellejay, 23rd Dec, 2016
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