Commercial Investment
Case Study Analysis
An overview of how Wayfinder assisted a client looking to purchase a commercial investment property.
Challenges
- Didn’t know where to start
- Had an aggressive timeline to buy & settle
- Did not have a plan
Numbers
- Achieved a 7.2% rental yield
- Tenant had a 5yr + 2 x 5yr options contracted - security for the long haul
- Negotiated a 20% lower price than advertised
Objectives
Referred by a mortgage broker partner, were 2 sisters looking to invest their savings in to a commercial property. They didnt know where to start, did not have any preference on location, had between $600,000 and $700,000 to invest and needed to settle fast – within a 3 month period.
Our Engagement Method
We held a preliminary 15min discovery call with one of the sisters, who have a high level summary of what they were seeking. She wanted a fast understanding of opportunity, and so we went to task right away to understand her options.
Within 3hrs, the Wayfinder team found 3 commercial investment opportunities with strong growth opportunities – 1 in NSW, 1 in QLD and the other in VIC. We presented those options to both sisters the next evening, went through the benefits of each and concluded 1 preferred investment route. We contracted the next week and achieved a 20 day settlement.
Result #1
Leveraging our vast relationships in the commercial space and systems, we were able to identify 3 very strong opportunities for our clients to consider.
Result #2
One property was a stand-out with a 5yr + 2 x 5yr options just signed, providing long-term security for our clients with a tenant.
Result #3
All outgoing costs (maintenance, strata, insurance, water etc.) were covered by the tenant, saving our client over $20,000 per year of additional spend. Net v Gross.
Result #4
We physically inspected the property on behalf of the
client who was based In another state via video
walkthrough. The clients were able to experience their
investment for themselves without being too emotionally
involved.
