Commercial finance

[Beano]

Isn't Eyal the one on court for renting out that slum office building in Welly as residential flats?

Looking at his website he has atleast 22 staff ...and hundreds of tenants ...mistakes can be made with such large volumes...it does not change my view of him.

[Beano]

Everything I have said on this site is 100pc correct and true Bob.

[Davo36]

But Beano, you say stuff like this:

If i had to start again today i would buy commercial
Something like the 10pc net yield in Auckland. ..work on improving the rental...fund it at 4.3pc ..

I spoke with a CBRE agent the other day. Industrial yields for decent property are around 5% and in fact they've recently sold a few at 4.8%.

But you say to buy at 10%...

[Beano]

But Beano, you say stuff like this:



I spoke with a CBRE agent the other day. Industrial yields for decent property are around 5% and in fact they've recently sold a few at 4.8%.

But you say to buy at 10%...

I am not a agent. ..all I know is properties like
4343 Great North Rd Glendene Auckland were offered to me ...call Simon Child Colliers 358 1888 I passed it on to my mate who brought it ...10pc net yield ...
As I always say higher yield higher risk but they do sell at 10pc yield ...I purchased last year a lessors interest that now yields 6.4pc net ...but you can't compare a lessors interest with a property with a property that depreciates and has risk of vacancies and non payment of rents
My next door neighbour in wgton was wanting 11pc net
Not certain what he sold it for ...44 Wainui Rd Seaview

[Beano]

But Beano, you say stuff like this:



I spoke with a CBRE agent the other day. Industrial yields for decent property are around 5% and in fact they've recently sold a few at 4.8%.

But you say to buy at 10%...

If I was starting again I would not look at prime properties yielding sub 5% I would aim at the lower grade properties where there is growth potential
Currently I am working on lifting the average rental for 1.3ha of buildings on one of my sites.
Hopefully from $45m2 to $60m2 plus
These are the properties that will give you the income
Buying at 4.3pc does not produce good profits.
If anyone is interested in my thoughts on where to start pm me.
The bulk of my tenants are sub $100k rental

[Davo36]

I am not a agent. ..all I know is properties like
4343 Great North Rd Glendene Auckland were offered to me ...call Simon Child Colliers 358 1888 I passed it on to my mate who brought it ...10pc net yield ...
As I always say higher yield higher risk but they do sell at 10pc yield ...I purchased last year a lessors interest that now yields 6.4pc net ...but you can't compare a lessors interest with a property with a property that depreciates and has risk of vacancies and non payment of rents
My next door neighbour in wgton was wanting 11pc net
Not certain what he sold it for ...44 Wainui Rd Seaview

Look last time you mentioned this one, you said 9%. And I'm pretty damn sure it was vacant right? And this was over 2 years ago right?

And then in your second post you say buy prime properties yielding sub 5%? But lower grade properties? So lower grade prime properties... man.

And then you do the whole gloating thing a bit more.

You know the thing is, I do believe you've done pretty well in property investment. I actually don't think you are just full of it, like others on here.

But you don't offer any useful advice at all. All you do is talk in circles, say things like "Just a small loan of $20 million' or "I'm only in a small way..." blah blah blah.

So if you have managed to do well in property investment, you sure as hell can't seem to teach it or explain it, not to me anyway.

What you are trying to say above, for instance is buy prime properties, but under rented ones right? So why not say that? it would be so much clearer.

[JBM]

10m to 20m in rental income LOLOL >>>

[Bobsyouruncle]

It is possible Beano is just a bit left of centre. He appears to have 10 properties in his own name and has a lot of property in a company with a relative. So all I can say is why on earth do you bother getting on PT if your posts are true? We are all kindergarten compared to you. It just makes no sense.

[Beano]

Look last time you mentioned this one, you said 9%. And I'm pretty damn sure it was vacant right? And this was over 2 years ago right?

And then in your second post you say buy prime properties yielding sub 5%? But lower grade properties? So lower grade prime properties... man.

And then you do the whole gloating thing a bit more.

You know the thing is, I do believe you've done pretty well in property investment. I actually don't think you are just full of it, like others on here.

But you don't offer any useful advice at all. All you do is talk in circles, say things like "Just a small loan of $20 million' or "I'm only in a small way..." blah blah blah.

So if you have managed to do well in property investment, you sure as hell can't seem to teach it or explain it, not to me anyway.

What you are trying to say above, for instance is buy prime properties, but under rented ones right? So why not say that? it would be so much clearer.

This property was offered at a 9pc it sold at 10pc in December last year settled this year ...so still pretty current
No fully tenanted ...
It is only when a property is sold do I know the exact yield
(Prior to the sale I would have said 9pc)
My suggestion to new investors is to buy under rented properties or high yielders

But personally I feel this require's a lot of time and work ...I have been concentrating on lessors interest with lower yields ...although still over 6pc net ...so they do return a tidy profit
The numbers I deal with are small ...I don't know which circle you deal in but there are many many big players out there with $100m loans. ..I know i am a small player
I am not a buyers agent , real estate agent or guru out for a personal gain but I have assisted many to start and build their portfolio ...all complimentary .
But I also realise I am a pretty small time investor too

[Don't believe the Hype]

For what it's worth, I've met Beano multiple times and he has connected me into a number of great contacts that have seriously helped me and my business. He is a wealth of information and someone who is very understated.

The request for information and some of the nuances that Davo36 and Bob are talking about in the critiques above I believe comes from 3 things:

1 - Continual interest in learning which means he is interested in hearing what others think no matter what level of expertise they have

2 - Context/comparing scale to those around him - many of his contacts/friends/mentors are far bigger than he is so lining up next to him they are far larger

3 - Being humble

[Don't believe the Hype]

Agreed on the need for some scepticism.

But a troll? A bit harsh, given the level of productive commentary he provides.

Then again,What is your aim 10m , 20m rental pa by the time you retire from investing ? is arguably a trolling comment. In all my experience with even the most ambitious of property clients, I've never met anyone with ambition of more than a $500k annual investment income. I'll personally be satisfied with $70-100k after costs. Why continue empire building past the point where you're comfortable and free to do whatever you want?

As someone who has done exactly what you've just said you want to do I would say 5 years ago i would 100% agree with you.

In fact when i last reviewed my mid to long term goals the $500k level you mention was the level we settled on. The interesting thing is that when we got to $100k we revised up to $500k - some reading this may just sat that is greedy... from where i sit it is just about setting goals and achieving them. The alternative is just sitting on my ass doing nothing which I've never done and will probably never do. If I do achieve $500k, do you think i will revise up to $1M, then $5M and so on? - i probably will

For me the key now is risk management - i will never do (never say never right) anything that risks by base capital. Why risk $100+ of thousands of dollars of passive income to chase a goal of $500k, the extra $$$ are not worth the risk of losing it all and having to start over.

I think the problem comes when people start believing their own hype... they go from nothing to $x in value and $y cash flow, then the ego takes over and they take bigger and bigger risks until they take a risk that is too big and wipes them out completely.

I think about it like when I go play black jack (not often) - start with $100, if you're lucky enough to win a few hands put the $100 back in your pocked and play with the excess. If you go up thousands from there great, if you lose it all at least you walk away with your initial $100.

[Bobsyouruncle]

Ah, so maybe Beano and hype are the same person, the plot thickens.........

[Don't believe the Hype]

Yep... i'm Hype, Beano and Orion according to Bob

[Davo36]

It is possible Beano is just a bit left of centre. He appears to have 10 properties in his own name and has a lot of property in a company with a relative. So all I can say is why on earth do you bother getting on PT if your posts are true? We are all kindergarten compared to you. It just makes no sense.

Dean, to know this, you would have to know Beano's name. How would you know that?

[Davo36]

As someone who has done exactly what you've just said you want to do I would say 5 years ago i would 100% agree with you.

In fact when i last reviewed my mid to long term goals the $500k level you mention was the level we settled on. The interesting thing is that when we got to $100k we revised up to $500k - some reading this may just sat that is greedy... from where i sit it is just about setting goals and achieving them. The alternative is just sitting on my ass doing nothing which I've never done and will probably never do. If I do achieve $500k, do you think i will revise up to $1M, then $5M and so on? - i probably will

For me the key now is risk management - i will never do (never say never right) anything that risks by base capital. Why risk $100+ of thousands of dollars of passive income to chase a goal of $500k, the extra $$$ are not worth the risk of losing it all and having to start over.

I think the problem comes when people start believing their own hype... they go from nothing to $x in value and $y cash flow, then the ego takes over and they take bigger and bigger risks until they take a risk that is too big and wipes them out completely.

I think about it like when I go play black jack (not often) - start with $100, if you're lucky enough to win a few hands put the $100 back in your pocked and play with the excess. If you go up thousands from there great, if you lose it all at least you walk away with your initial $100.

Interesting.

You generally have sensible things to say (IMHO) DBTH. And I think you write quite differently to Beano, so not the same person as far as I can see.

I have met many people who set these kinds of goals. And it's often because they can't stand the idea of doing nothing, not achieving, not constantly striving for the next goal.

And so I always wonder why these people can't be comfortable in their own skins, with what they have. What's wrong with sitting around doing nothing if you've earned the income to be able to do so?

Of course it's very difficult to do nothing. But there are many things that can be done that don't involve making money.

Here's a few which I may or may not do, and may or may not value:

Raising a family - spending time with young kids.
Learning things - this could be anything from playing a musical instrument, to a language, to computer skills etc. etc.
Charity Works - or other good works of various kinds.
Church Involvement - again, helping people, or just being a group of like minded people
Full time work - sometimes people decide that they actually want a job where they can be useful.
Environmental and/or conservation work - kinda comes under the good works thing again.
Philanthropy - if you're seriously wealthy, then you can spend all your time giving the money away e.g. Bill Gates.
Travelling - a lot of well off people like to see the world.


I guess if you enjoy doing property stuff then it would be a good thing to do.