Can you start investing in commercial real estate with just $100,00?
Here we’re going to breakdown the basic costs of getting into a commercial property investment for us $100,000. This might sound unattainable, but often, this $100,000 can be pulled as equity from your residential property and put towards the deposit of your commercial property.
Let’s break down the deal.
Property Details
Purchase Price: $245,000
Net Income: $20,000
Net Lettable Area: 80m2
Income Per m2: $250 pm2
Rental Increase %: 3.5%
Deposit Amount: 35%
Acquisition
Purchase Price: $245,000
Deposit: $85,750
Stamp Duty: $7,700
Valuation & Solicitor: $4,000
Loan interest rate: 6.5%
Total Acquisition Costs: $256,700
Total Deposit Required: $97,450
Financing Costs
Interest on Equity Facility: $6,334
Interest on Debt Facility: $10,351
Loan
LVR: 65%
Debt Facility: $156,250
Finance Setup Fee: $1593
Revenue
Gross Income: $20,000
Net Initial Yield: 8.16%
Cashflow
Total Annual Cashflow: $3,315
Interest Cover Ratio: 1.93
Forecast Return on Equity: 3.4%
10 Year Cashflow Analysis
Average Net Income over 10 years: $23,463
Average Net Yield over 10 years: 9.58%
Average Annual Cashflow over 10 years: $17,134
This is factoring in figures over a 10 year period as your tenant pays down your loan and your cashflow improves. These figures would also change as the interest rate changes & rental costs increased over time.
IF you understand all this, well done, your half way to beginning your commercial property journey.
BUT if all this looks like another language and just numbers on a page, then it’s our goal to teach you how to understand these deals, so you understand the language, and can then find your OWN commercial deals.
Our 12 week introductory course is opening soon and has VERY limited spots. The reason they’re limited is we schedule WEEKLY video calls with you to help you every step of the way, so we simply cannot accept anymore once the course is full.
Commercial Property Investing 12-week Online Course Coming March 2023
See below for more details
Does this sound like you..
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You understand the power of Commercial property investing but unsure where to start?
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You have access to $100,000 to begin your first commercial investment!
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You want to learn the skills & insider knowledge from experienced buyers agent to find your own commercial investments!
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You're sick of negatively geared properties or yields of only 4% (our commercial investments often achieve over 10%).
Start Your Commercial Real Estate Journey with our 12-week Online Course.
Doors open to Commercially Minded on Monday 20th March 2023
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Why Commercially Minded?
Learn years of investing in 12 weeks.
We've purchased over $350 million of Australian commercial property for our clients & we're teaching you everything we've learnt.
Ditch the buyers agent & become fully self sufficient.
Empower yourself by learning everything you need to source property deals yourself & save over $20,000 by ditching the buyers agent.
We teach you how to use data to find incredible great deals, the BEST ways to manufacture equity & how to manage your commercial property.
Industry tested checklists.
You'll get access to all our data backed checklists, used for feasibility research, P&L assessments, risk tolerance & assessment, budgeting, property management & finance assessments.
These checklists & spreadsheets have been used in the industry for years and are an asset to pass onto your children to educate them on property investing.
Beginner to Contract Signed
Our course has been designed to suit the complete newby commercial property investor. Our goal is to equip you with a solid plan of where & how you can purchase your next commercial property investment, over and over again and replace your job through commercial property investing.