Commercial property to me is all about the tenant. If you have a good tenant, then you have a good property. If you have a bad tenant, then they could stop paying rent or move out, which means you have a bad property that might cost you thousands.
To me the ideal commercial property scenario is where you find a good, solid tenant. Then find an empty building that you can buy that suits their purpose. Sign them up as a tenant, then go unconditional on the building. By doing this you often get a great initial gain, maybe 1.5 times (ie purchase for $1 million, but tenanted worth $1.5 million), and also the cashflow should repay the debt over 10-12 years. Hopefully the mortgage is repaid by the time the tenant moves out, which gives you a debt free property which is less risk as less costs going out if empty.
Ross
To me the ideal commercial property scenario is where you find a good, solid tenant. Then find an empty building that you can buy that suits their purpose. Sign them up as a tenant, then go unconditional on the building. By doing this you often get a great initial gain, maybe 1.5 times (ie purchase for $1 million, but tenanted worth $1.5 million), and also the cashflow should repay the debt over 10-12 years. Hopefully the mortgage is repaid by the time the tenant moves out, which gives you a debt free property which is less risk as less costs going out if empty.
Ross
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