Master Class: 10 Tips to replace your income with commercial property investing

With James DawsonCommercial Property Cashflow Blueprint

We help investors build and manage

their property portfolios

In partnership with…

Real Estate Investar’s tools

Master class webinars• Designed to share knowledge.

• Desire to provide extra value to our clients.

• Great for both new and experienced investors.

• Plenty of opportunity for Q&A.

• We will run these regularly throughout the year, and sometimes involve our partners to provide additional insight.

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Discover how to replace your income with the passive income power of commercial real estate investing

About me

What we will cover tonight

• The fastest way to replace your income using real estate.• How to get 6%+ returns from capital city and regional properties.• Why commercial real estate is a sleeping giant, if you want access to instant

positive cash flow.• The 5 myths of commercial property busted.• How you could be just 3 deals away from retirement… maybe even just one. • Residential vs commercial: which one is best and why?• Where you can get great positive cash flow deals day in day out • Plus much much more…

From $33k to $100k in six months

My third property

Creating win-winsituations

Average residential yields are LOW

Residential Commercial

Interest at 5%

Returns

Annual Income

Annual Profit /Loss

Example: Buy a $500,000 property

+$5,000 to $25,000-$5,000

$20,000

4%

$25,000

6%-10%

$30,000 to $50,000

$25,000

Module 1How to identify the right properties

Go from ‘flying blind’ to strategic cash flow property investing

Strategic Shift #1

Why is this so important?

I look at;• Higher than average yields• Long-leases• Secure tenants• Upside

What does this mean in reality?

Cash flow:Let's say all up cost 195kNet Income = $14,532Repayments @ 5% = $ 9,750

Positive Cash flow = $4,782 pa

Mike’s cash flow deal

Total rent $72,800Outgoings $39,381Net rent $33,419

Mike’s cash flow deal

• Don't just buy anything that gives you an 8% + yield as some carry greater risk. • I give my clients an 18 step checklist to go through before they buy a property. • I can't go through all those steps now due to time, but do your due diligence.

Word of caution…

Modul 2How to buy right

• Spikes your yield • Gives you instant equity

Why buying right is so important

When I start negotiating, I pay what will give me an acceptable yield for the location and property type – lets say 8% plus.

That’s my starting point.

Nothing to do with asking price.

• Start close to home• Research online• View properties – talk to agents and tenants

Kate’s Launceston deal 2014

Kate’s deal: the numbers

Advertised at $750,000

Gross income of $90,000

Outgoings $29,000

Net Income $61,000

Kate’s deal: The numbers on settlement

Purchase Price $660,000

Stamp duty $25,500

Legals $2,500

Building Inspection $900

Planning consultant $500

Travel $1,000

TOTAL $690,400

Net return $61,000 /$690,400 = 8.8%

Loan payments 100% $34,500

Positive Cash Flow $61,000 - $34,500

= $26,500 per annum

Kate’s deal:The numbers now

Gross rent Oct. 15 $99,312

Outgoings $30,000

Net return $69,312

Net return $69,312 / $690,400 = 10%

Loan payments (100% ) $34,500

Positive cash flow $69,312 - $34,500

= $34,812 per annum

Mugs pay ‘asking price’

Pro investors pay what

gives them yield / goal

Which would you rather be?

Don’t just offer ‘low’

You need to ask the right questions to educate the vendor to be happy with that low price.

I show my clients how to do that and it works like a charm.

Commercial Property Illusions

Illusion 1- Too expensive

$145,000

$67,500

$185,000

$179,000

Illusion 2- Too complicated

Less emotion = less risk

Is this worth more… than this ?

Value based on income

Illusion 3- Long vacancies

Long LeasesLong leases: Investment lease driven

Tenant’s livelihood tied to property

Long term tenants

How to maximise property value

Maximise your properties – create profit windfalls!

This is important because:

• If you're starting with a low equity base it gets your portfolio moving

• Gives you more capital to play with that you can buy more cash flow assets

What do I mean by this ?

Hidden upsides;• Land to develop or build above• Strata title – sell parts off.• Under market rent – increase to market• Divide large spaces

3 tenants asking 845k- back lane- build more?- strata?- buy at 8.5% income net 71k- Repayments 44k at 5.2%- 27k positive cash flow With upside

Newcastle supercharge

Bondi equity supercharge

Bondi Supercharge

Bondi Supercharge

Bondi supercharge

End value Increase = $650k + $650k + $700 = $2,000,000

Cost to build $1.1m

Net equity increase $900,000

Rents from 3 new apartments = $98,000 pa

Cash flow increase = $86,000 pa less repayments on $1 mill @ 5.0%

Positive cash flow of $86,000-$50,000 = $36,000 p.a. plus the existing cash flow = $91,000 pa

This is not for everyone…

If you don’t know how to work with councils, and the right professionals it can be a minefield.

I have all the systems for that.

Gerard’s Gold Coast deal 2015

Gerard’s Gold Coast Deal 2015

“Hi James, Just like to give you some feedback. We joined you 21st April and 49 days later we have our first commercial property. Yes the owner of the Butchers shop in Landsborough has met us almost in the middle at $310k with a net return of $31,150 (10.04%) now we have to find the money fast and become unconditional.” “Initially I was dubious about the whole process and the figures bandied around on your programs just seemed too good to be believed, but after getting this I still can’t believe it really. The tenant has agreed to sign a variation of a new 4 year and 3 + 3 option so after 4 years it will be returning 11.75% ($35,038pa).” Gerard

Gerard’s Deal – The numbers on settlement

Purchase price $310,000

Stamp duty $10,000

Legals $1,500

Total $321,500

Net return $31,150 / $321,500 = 9.7%

Loan payments 100% $16,075

Positive cash flow $31,150 - $16,075

= $15,075 per annum

Do you want know how to do this?

Commercial negotiations - second bite of the cherry

John’s Proserpine Deal 2015

John’s Deal - The numbers

Advertised at $340,000

Gross income of $38,500

Outgoings $4,500

Net Income $34,000

John’s Deal The numbers on settlement

Purchase Price $280,000

Stamp duty $9,000

Legals $2,000

Building Inspection $900

Travel $1,000

Total $292,900

Net return $32,000 / $292,900 = 10.9%

Loan payments (100% ) $14,500

Positive Cash Flow $32,000 - $14,500

= $17,500 per annum

How would you like me to show you a single deal that you could retire on?

Tim Hart - one great deal

“I found James Dawson’s home study course to be extremely comprehensive and easy to follow. It's given me the confidence to start negotiating multimillion dollar deals and all on them with little to no money down and massively cash flow positive “The Shepparton deal settled on the 19th August.

A few months before settlement I had Jaycar resign a new lease for more money, a tenant sign a 5 year lease to take the vacant shop, and a load of rent increases. J It was great. The valuation came it very conservatively at $4.35m and I got $2.7m from ANZ for my $3m purchase price. $20k a month positive cash flow, Great deal.”Tim Hart

There’s two roads you can take

1: Go it alone and learn by your own mistakes OR2: Use my 33 years of experience, tools, calculators, strategies, checklists and legal templates to shortcut your journey.

Let me tell you about my Commercial Property Investingtraining programme

How does it work? • Identify - Finding the right properties is tough. Very few people have a clue

about commercial property and no one teaches it like me.

• Buy – How do you make sure you don’t pay too much? How do you get the right lease?

• Maximise – How do you maximise properties - see value that others don’t see.

Core training and reference

manual

Section #1- Preparing for Commercial Property Success

You will discover:

• Examples of recent advertisements on the different types of properties you can invest in (and exactly what to look for). (Pages 7-8)

• Due diligence (in a template format) that you need to complete to make it easy for you to get finance. (Page 14)

• Why commercial property is NOT more risky than residential (& why it actually can have a lower risk and lower vacancy rate). (Page 10)

Section #2- How to locate opportunities at the right price

You will discover:

• What really drives capital growth in commercial properties (boosting this can quickly add tens of thousands of dollars to the value of your property)

• A simple formula to quickly work out the value of a property within minutes (makes it almost impossible to get ripped off). (Page 37 - 38)

• The best areas to invest in (for low risk & high returns). (Page 39)

Section #3- How to work with real estate agents, valuers

and solicitorsYou will discover:

• The six best initial questions to ask a commercial real estate agent (Use this sneaky technique to find out all the underground information about a local area without paying a cent. (Page 26)

• The best commercial real estate agents to call first. (Page 69)

• A sample phone script for talking to an agent. (Page 98-99)

Section #4- How to negotiate the best deal

You will discover:

• A sneaky technique to get more information about a deal. (Page 97)

• 5 different terms that can be negotiated (and why the terms can be almost as important as money). (Page 101)

• One of the best negotiation questions you can ask to an agent or vendor (this can get them to slash the price by 10% or more, putting thousands of dollars into your pocket within seconds). (Page 107)

Section #5- How to find stellar tenants and property managers

You will discover:

• What to ask for to quickly see if the tenant in a commercial property is going to give you headaches down the track. (Page 131)

• 11 things you must check for to avoid a nightmare tenant

• What you should do every 6 months with your tenants & properties (makes your tenants happier, lowers your odds of future headaches).

Section #6-How to add instant value to your Commercial

property

You will discover:

• 2 simple examples of how to add value to a commercial property, adding thousands of dollars to your investment. (Page 15)

• How to get INSTANT EQUITY on a commercial property after your purchase (factor this into your strategy - but NEVER let the seller know about it). (Pages 82-83)

• A quick way to increase your rent by $200 a week (quite often, tenants love it because it drives more people into their shop. Wait until you see what it does to the VALUE of your property). (Page 243-244)

Section #7-How to get money for Commercial Property

even if you’re low on equity or cash

You will discover:

• Doing this "legwork" for your valuer could attract the extra borrowing power you require to push a loan through. Takes just minutes, extremely powerful. (Page 92)

• What to do if you’re short on cash-flow. Find out why getting vendor finance on commercial property is as easy as 1, 2, 3. (Page 49)

• A step-by-step action guide on exactly how to search for finance (do this to get your deals passed in no time at the lowest possible interest rate. In addition, find out the six questions to ask about loan products before signing on the dotted line). (Page 158-162 & 166)

The core video training modules

Module 1

• Getting ready to invest• Organise to keep track• Build your team• The basics of real estate investing –

why?• Types of commercial properties• Basic terms and formulas• Costs to purchase

Module 2

• How does the commercial market work?

• Mini due diligence• Cap rate - exercise

Module 3

• How to develop your own plan and strategy for commercial property investing.

• Phases of becoming financially independent.

Module 4

• How to find deals.• Tips when talking to agents or

vendors.• Exercise

Module 5

● How to arrive at a value & how to choose a valuer.

● How to value a vacant property.● Negotiating a deal.● Make offer in writing.

Module 6

Due Diligence

• Basic due diligence.• Due diligence checklist.• Physical property due

diligence.

Module 7

Finance• Don’t fear debt.• How to search for finance.• Know about the various loan

products.• How much will banks lend?• What are the other costs?• What personal information do

lenders need?• What property information do

lenders need?• Vendor finance.• How to present a proposal for

finance.

Module 8

Leases and property management• Why leases are the backbone of a

commercial investment.• What a lease should include.• What is a gross lease and a net lease?• The assignment clause.• Important factors in lease negotiations.• Lease processes.• Property management.

Bonus Modules – Module 9

• Supercharging.• Buy property with hidden upsides.• Review existing investments.• How to check potential.• Running the numbers.• Use consultants – tips.• Some very basic upsides, often missed.

Bonus Modules – Module 10

+

Bonus Modules – Module 11

+

Resource: DVD 12

Commercial property in actionAudio compendium

• How to win - not lose when a tenant sells their business.• Interview with commercial property investor.• Creating a win - win deal when a tenant sells their business.• Everyone can win here, the old tenant, the new one and the

landlord.• Tips on rent negotiation.• Interview with a tenant.• Market rent reviews - the pros and cons.• Quick tips on how to create extra value.

All Of

Everything gets sent direct to your door

And you also get unlimited access to the members only site

From the comfort of your own home you can learn, review or expand your knowledge and become a successful commercial property cash flow investor.

Inside the members area

Full access to the digital version of the core training modules

Plus you get access to the exclusive, online only training components:

Hot property deal searches I regularly find deals that have excellent potential and upside. I review these properties and give my clients a detailed analysis of each. I mention what you will need to investigate, possible upsides and often review

the numbers for you, so you can see how I think. These are deals that are live and in the market right now. Whether you are ready to buy right now, or you are between deals you can

learn from the analysis of each of these deals.

Most of my clients believe that once you’ve done the core training, ‘these videos and reports are by far the most valuable part of the course’

Property search example

Here’s an example of what you’ll get:

✓Short video✓PDF document✓Links and info

If you are market ready you could buy this right now…

Deal Summary:$80,000 + potential positive cash flow.3 ‘hidden’ upsidesAlmost retire with this one property.

Deal review example

Momentum Power Sessions

The latest pro updates on any commercial property tips, strategies and tools you need to know about; I upload commercial real estate content

to the site that contains topical info. I talk to the professionals on a daily

basis and if I feel you need to know about a certain topic I’ll create a short and sharp powerful session in video format and get it to you.

Community Q & A section

• You’ll be able to take part in our community Q & A section where members can ask questions.

• I and other members of the community can answer or share their experience.

• High productivity mini-forum purely for specific questions.

• Fast becoming a great resource for sharing contacts and experts in different areas of the country if you happen to be looking at properties away from where you live.

Monthly Q & A video training sessions

You’ll get access to my members only Q & A email direct to me.

Once a month I go through all your questions and specific deals you may be working on and answer your questions in detail.

Members ask all kind of questions, so even if you don’t have anything one month you can still learn a huge amount by seeing what the other community members are working on.

I can even review your potential deals (and keep the address private) so others can learn from your deal without knowing which property it is.

Q & A training archive

To summarise…

Commercial cash flow property coaching and mentoring program ValueThe A-Z commercial cash flow property blueprint (massive manual – 7 secrets to cash flow success) $1,995

The commercial cash flow professionals 8 module online seminars $2,995

3 bonus fast growth / fast cash flow modules $1,295

11 DVD’s of the core training for your educational library $995

Resource DVD – commercial property leases, documents, letters and templates compendium $1,995

Lifetime membership site access including all course updates and ongoing training including my spreadsheet cap-rate and feasibility calculators

$2,000

Commercial property in action audio compendium $497

Regular deal search videos of hot deals in the market $995

Momentum power sessions $795

Community Q&A mini forum section $500

Monthly Q&A sessions $1,500

Total program value $15,562

Get started today for just…$349 deposit and then 11 monthly payments of $349 (Total $4,188)

OrSave $1,193 with one payment of just $2,995

Question time…

Take advantage here:

commercialrealestateinvesting.com.au/reispecial

Get started today for just…$349 deposit and then 11 monthly payments of $349 (Total $4,188)

OrSave $1,193 with one payment of just $2,995