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Old 30-06-2008, 01:21 PM
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Horizon Horizon is offline
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Our Commercial Journey

Hi Folks,

Well I have been a very occasional poster, but visit the good ship SS twice daily (quite additive). After lots of reading of the threads, books and speaking with some advisors, then changing the plan in Feb from resi to commercial, I thought I would take the plunge and start posting more…

This will be more like a “Newbie’s Journey in Commercial IP” thread as the journey unfolds.

So whilst I have read, “Best to jump in” I wanted to educate myself on the terminology, and research specific areas. I am encouraged by this post July 2005 by a newbie.

http://www.somersoft.com/forums/show...614#post161614

My posts will highlight the following areas (at least these are the blanks that I know about now, but I feel confident I have missed a lot)

1. Which type of Commercial to go for.
- At this first stage I am looking at industrial in the Eastern Brisbane Area


2. Financing
- Vendor finance, how does this really work
- I have heard people talk about using 30 day bank bills, but I don’t know how this works
- Talk to Comm Mortgage Brokers


3. The Lease
- Core elements to get right in the lease (Dazzling has mentioned some fantastic clauses)


4. Researching
- Pick 2 agents to deal with
- Realcommercial.com.au
- As I am in Brisbane, the best papers seem to be the Courier Mail on Fridays and Saturdays
- Build a spreadsheet to measure each property on it’s attributes (total area, NLA, $/m2/year, cap rate)


Our plan for the next quarter (July 1 – Sept 30) to research a particular area to determine: deal types, sources, method of measuring a good deal. I also find out how much equity from a business I can release in this timeframe, which may lift me out of the entry level commercial.

Once we have determined our criteria, we will look to purchase in the Nov - Dec timeframe.


I have been quite withheld in the past with posting as I couldn’t see a lot of value that I could add at this point in our journey, but perhaps others can see this thread in a couple of years and say “Jeez, I won’t make that same mistake that Horizon made…”

Anyways, thanks for reading.

Cheers,
Horizon
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Old 30-06-2008, 01:27 PM
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Quote:
Originally Posted by Horizon View Post
perhaps others can see this thread in a couple of years and say “Jeez, I won’t make that same mistake that Horizon made…”
Yes, we'll all take great joy in saying "man, that Horizon's such a &*#-up"

Can't wait to see how your journey proceeds, Horizon. I trust, and hope, it will be as successful as your business venture has been.
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Old 30-06-2008, 03:09 PM
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Great idea Horizon! Make sure to keep the updates flowing as you proceed, I've now subsribed to this thread.

I'm hoping to do the same thing in a couple years, so will be following your journey with keen interest. I'm in the same postion as you, I want to wait for some equity to build so I can buy in beyond the entry level commerical which will allow me to go straight to the bigger/better tenants.
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Old 30-06-2008, 03:28 PM
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I wish you all the best in your endeavours Horizon.

Eagerly awaiting the first installment.
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Old 01-07-2008, 03:42 PM
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*eagerly awaits*
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Old 03-03-2012, 07:20 PM
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so how did it go....?

went bankrupt and got locked up in jail so you cant post on SS?
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i merely offer a suggestion, I in no way know the right or exact method to do it and speaking from my very limited knowledge (only got into looking at investing in 2010)
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Old 03-03-2012, 08:35 PM
INVSTOR INVSTOR is offline
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New years resolution??
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Old 25-05-2012, 04:28 PM
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back in the game...

Quote:
Originally Posted by BMan View Post
so how did it go....?

went bankrupt and got locked up in jail so you cant post on SS?
Not quite BMan

I made some good progress in determining style of property, area, best agents for the area I was looking at, and determining the amount I could borrow with a reasonable level of SANF.

They say of all the best laid plans... Unfortunately my Dad passed away due to a complication, 1 week before I sold my business. Part of the sale contract was that I "earn out" over 2 years, and it was emotional and hard going but we got there in the end.

I was a little burnt out and relaxed for a while, and started investigating the next business venture, which is now taking shape. We have the asset base, just need the income up a little more to tick the lenders boxes.


Quote:
Originally Posted by INVSTOR View Post
Last Activity: 18-12-2011 07:48 AM
New years resolution??
I am known to be a little structured in my approach and Jan - May was to get the income stream underway (and not distract myself with SS and a couple of other sites), June revisit original comm strategy and revise, July - Dec get back up to speed with the areas, returns, agents, etc (as well as the business growing to support income). If the right deal comes along, pull the trigger.

I will post as journey as it unfolds, albeit at a much smaller scale to others in this group.

Cheers,
Horizon
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