Can Someone Teach me the Basics of Commercial Property?

[Davo36]

Was this commercial ?

No residential.

They were assuming they could leave in a few hundred thousand dollars for the purchaser.

[DaveW]

No residential.

They were assuming they could leave in a few hundred thousand dollars for the purchaser.

This is a commercial thread.

[Davo36]

This is a commercial thread.

Oh I'm sorry, thought we were talking about all these vendor financed properties?

Still no examples of that in EITHER residential or commercial?

Thought I had one, thought you might have liked it.

But of course it turned out to be VENDORWARE again.

[DaveW]

Oh I'm sorry, thought we were talking about all these vendor financed properties?

Still no examples of that in EITHER residential or commercial?

Thought I had one, thought you might have liked it.

But of course it turned out to be VENDORWARE again.

Vendor financing is done many times in the commercial sector and in today's market. You won't find it handed to you on a plate because, surprise surprise, people prefer cash as their first option without laying all their cards out on the table.

[Davo36]

Vendor financing is done many times in the commercial sector and in today's market. You won't find it handed to you on a plate because, surprise surprise, people prefer cash as their first option without laying all their cards out on the table.

And we're right back where we started.

You say it's done many times.

I say "How?" and "Where?" and you trot out the old "It won't be handed to you on a plate" thing again.

Yep, there's 10% net yields out there at the moment. Central Auckland pristine commercial/industrial units with international tenants on 8 year leases. You can't find them? Oh I see heaps, but you know, they won't just be handed to you on a plate, you have to get out and look.

Blah blah blah.

[DaveW]

HOW? By asking the vendor.
Have you got the balls to even do that? If you can't get past that then there's no hope.

WHERE? Anywhere where there are vendors.
Hey Davo don't expect it on Facebook. I remind you again.... it's not handed out on a plate.

You say it can't be done yet you've never even attempted it. Sounds typical don't worry.

[Davo36]

Same thing you've been saying all along. Again.

I call BS.

[DaveW]

You're free to think what you like.

How about Friedlande, Krukziener, Jones.... do you think the likes of them only use their savings and a loan from Kiwibank?

[DaveW]

And I suppose you're still stuck on your one deal Papakura?

[Davo36]

You're free to think what you like.

How about Friedlande, Krukziener, Jones.... do you think the likes of them only use their savings and a loan from Kiwibank?

Yes Bob Jones asks the vendors for money, crying poor.

Krukzeiner would, he would need it I'd think.

Dunno about Friedlander.

Are you comparing yourself with those guys?

[Davo36]

And I suppose you're still stuck on your one deal Papakura?

Done a few since then thanks.

Not the literally hundreds of deals you've done obviously. You must be up to what, 800 purchases by now? 600 with vendor finance or higher?

[DaveW]

Yes Bob Jones asks the vendors for money, crying poor.

Krukzeiner would, he would need it I'd think.

Dunno about Friedlander.

Are you comparing yourself with those guys?

Good God it looks like you're saying vendor finance might be possible Again.

[Davo36]

Good God it looks like you're saying vendor finance might be possible Again.

Well I didn't say it in that bit you quoted, but I've always said this.

I'm sure it used to be quite common.

But I think nowadays it's very uncommon, perhaps almost never happening at all.

[DaveW]

Well I didn't say it in that bit you quoted, but I've always said this.

I'm sure it used to be quite common.

But I think nowadays it's very uncommon, perhaps almost never happening at all.

Nope. Many vendors are willing to give terms because in todays market they are getting their price.

What would the vendors otherwise do with all that equity?... put it in the bank at 3% less tax?

[DaveW]

Done a few since then thanks.

Not the literally hundreds of deals you've done obviously. You must be up to what, 800 purchases by now? 600 with vendor finance or higher?

No after 2 years or so the vendor finance is usually then converted to bank finance.

I see now where your thinking is wrong. The original post was how to finance to buy commercial property. I only buy good quality with ADD VALUE. By the time the value has been added then refinance with bank.

This is what I was implying when I said your net worth will grow very quickly.

It's also what I meant when I asked what would you do with say $300k.