Need recommendation- Buyer's agent for commercial

Discussion in 'Commercial Property' started by allanh, 17th Jul, 2021.

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  1. allanh

    allanh Well-Known Member

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    Hi, I and my partner are thinking about investing in the commercial space. Being busy with our daytime job and no time to do research, we are hoping to outsource all the sourcing, due diligence to a good buyer's agent for commercial properties.

    We have bought a residential property through a "celebrity" buyer's agent lately. While the property is good, I feel that a lot of what was described in their podcasts weren't been delivered (i.e. off-market, positively geared). It's either I expected too much from a buyer's agent or their marketing are better than their actual work.

    Anyway, now we are looking for commercial properties. I found that I really liked what Scott O'Neill from Rethink Investing had to say in his podcasts and he seemed really knowledgeable and had best buying network in the industry. I am thinking to engage him but then I see this thread:
    Helen Tarrant or James Dawson Commercial Property course - PropertyChat

    which made me think twice.

    A few people posted good experience with him but the negative ones really concern me. Is he another one of those "celebrity" buyers' agent who does less than he talks? Or would
    he practise / deliver what he says in his podcasts?

    If he is more the former, does anyone have any buyers' agents who have more substance that they can recommend?

    thanks in advance
     
  2. HaigJames

    HaigJames Member

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    I have used Rethink for both residential and commercial property. However i found their commercial service incredibly valuable.

    I'll be honest i think their residential buyers side is similar to all the others out there. However when it comes to commercial Rethink Investing is the only specialist buyers agency that had a long track record that i came across. (I spoke to 4 other agencies before jumping in).

    I have now purchased three commercial properties with them or under the million dollar mark. So far I have had no dramas with them and the last year has been very good for capital growth on top
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    That's purely market driven not through any of the BA's input or insight. Last year made everything go berserk.
     
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  4. mkbonline

    mkbonline Well-Known Member

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    Thank you for sharing your experience with Rethink in the forum. I am in similar boat as the OP and considering Rethink.

    Rethink are charging $1,500 (plus GST) once off sign-up fee to begin viewing available properties and then $14,990 (plus GST) success fee due on settlement or 1.9% (plus GST) of purchase price (whichever the greater). So, if you buy $2mil mark - it would become $38k - which will leave pretty big hole in your pocket ;)

    Will you be able to share what type of commercial properties you brought (warehouse, medical centre, child care ?) and what was the yield like? Were you able to negotiate lesser agent fees?
     
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  5. allanh

    allanh Well-Known Member

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  6. HaigJames

    HaigJames Member

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    I purchased an industrial property through Rethink Investing in Brisbane in 2019. Second one was also an industrial property in the ACT and have recently purchased a small pathology in Perth.
    All three were off market purchases. The blended average of the yields we are all around 7% net which is better than what I was saying in the market at the time of each purchase. So I believe I was in the positive after accounting for their fees.
    So no matter how much I would have loved so it myself, I simply would have seen these properties on my own.
     
    Last edited: 18th Jul, 2021
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  7. PE Investor

    PE Investor Member

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    I'm interested in using Rethink's knowledge too, let me know if you use them Allanh!
     
  8. 4theBoys

    4theBoys Member

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    In my experience,
    The fees are generally not negotiable, especially if no prior history with them - but of course, definitely ask the question. Lease DD, legals, valuation, B&P would all be ontop of this. As with anything, be crystal clear on what will be provided for the fee
     
  9. Damian Chen

    Damian Chen Member

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    Do you mind sharing who the other 4 commercial buyers agents that you spoke to were?
     
  10. Duke

    Duke Member

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    Hi, did you end up going through with rethink investing at all, or still unsure?
    Thanks
     
  11. Duke

    Duke Member

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    Hi there,

    Can I ask did you end up using rethink investing or anything? I have reached out to them and asked for their entry point which they recommended $250k "for a good quality commercial property" which I have, but I want to hear REAL LIFE SITUATIONS not just off podcasts etc.

    Thanks
     
  12. Jacque

    Jacque Jacque Parker Premium Member

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    Have you tried the REBAA members who are commercial specialists?
    NSW Link here but I do the following buy commercial:

    Prosper Group
    Property Buyer
    Rose and Jones

    Good luck.
     
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  13. Bowser

    Bowser Well-Known Member

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    I have used Steve Palise and Helen Tarrant now, honestly both have their good and bad points for different things. I'll try Rethink next I think
     
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  14. allanh

    allanh Well-Known Member

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    Hi, I did not go through with Rethink.

    The reason being that when talking to them, I felt that I am being 'just a number'. I ended up going with Helen Tarrant. She is very strong minded, but would actually handle things hands on and respond to queries quickly (within hours by IM or email, even on the weekends).

    With Rethink (and most other BAs), I think they treat things more like a 9-5, Mon-Fri job.
     
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  15. JSMSC

    JSMSC Active Member

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    Bowser, what difference did you find between SP and HT. I am looking to engage a BA now
     
  16. HaigJames

    HaigJames Member

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    I spoke with pure property investment (I found them to be more residential focused but doing commercial on the side)

    Helen T - has a great sales pitch but she focuses more on small retail and her experience on industrial property at the time was minimal. In fact she was trying to talk me out of industrial property which I found interesting

    Engines of Wealth -Phil king, the guys seemed very experienced but was also mostly retail focused. I did get a lot of confidence in his personal experience with commercial property. If I was interested in only retail I would have gone with Phil. The only issue was he is a one or two man band. So I felt his connections in the industry couldn’t compete with the bigger buyers agencies.

    Chris Lang- wealth of experience but more focused on Melboune office investments and some retail. I couldn’t really get my head around his business and how active they are.

    All of them had their pros and cons. I went with Rethink as they have the most runs on the board by a distance. I figured if they were not doing a good job it would be fairly public by now. I also like the fact they seem to have a strong focus on industrial properties
     
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  17. Bowser

    Bowser Well-Known Member

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    Overall I was happy with both but a combination of the two would have been better.

    SP offered some absolute junk and it got frustrating when I brought up the negatives and he agreed. Made me wonder why are you showing me these places besides just to get a sale. Once the deal was done his team sprang to life and they done a great job on the DD, his recommended broker was awesome but conveyancer was junk. sale price was $3M

    HT is amazing with negotiation on the deal, both price, rent increases, guarantees etc. She was honestly like it was her own money she was spending. The properties she offered were of a better standard and she done a good job of explaining each place and why she thought it was a good fit for me. Her team wasn't as strong as SP although HT and 2 of her team actually flew to view the property and meet the tenants. The DD report although good probably wasn't to the same standard as what I got with SP. Her broker recommendation wasn't real good, to the point I wanted to go back to the other broker I previously used. Her conveyancer was heaps cheaper and really good. Sale price was $3.4M

    I'll probably use Rethink next time just to see how he goes
     
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  18. JSMSC

    JSMSC Active Member

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    Thanks Bowser,
    I have actually used RT. Never dealt with Scott, but his associates. Although on the lower of price ranges I found everything they sent through was 1. nowhere near my brief in terms of property type, style, and yield. 2. took about 8 months to find a property and communication in this time was poor, 3 I had already seen 80% of the properties online for a few days before they sent them through... Overall wasn't the best experience and hence why I am now looking for another BA on my next purchase.
     
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  19. Bowser

    Bowser Well-Known Member

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    Yeah that sounds pretty ordinary. I'd probably lean towards HT. SP lives overseas which is a royal pain with communication due to timezones
     
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  20. allanh

    allanh Well-Known Member

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    Hi, Bowser, could you PM me the broker that SP referred you to? Is he/she a lot better than GH (whom Helen uses)? GH to me has been above average, but I haven't used others so maybe there are better ones
     
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