Build and grow your wealth through property.

How to Control and Stabilise a Commercial Property Before You Own It

Fri, 20 Feb 2026 03:40:25 GMT

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Don’t Buy the Risk. Fix It First.

One of the biggest mistakes I see in commercial property is investors buying short WALE assets and hoping the lease sorts itself out after settlement.

Hope isn’t a strategy.

If a property has 6 months remaining on a lease, the market sees risk.

If that same property has a newly signed 5-year lease, the market sees stability.

The building hasn’t changed.

The tenant hasn’t changed.

But the value absolutely has.

Here’s how sophisticated investors stabilise a commercial asset before they own it.

The Problem With Short Leases

When a commercial lease is close to expiry:

Valuers factor in leasing risk

Banks tighten lending terms

Buyers demand higher yields

The tenant holds negotiating leverage

In simple terms: uncertainty gets discounted.

And in commercial property, value is driven by income certainty.

The Strategy: Stabilise Pre-Settlement

Instead of inheriting lease expiry risk, you negotiate with the tenant during due diligence and secure a longer lease term before settlement.

The objective:

Convert a 6-month remaining lease into a 5-year term before you complete the purchase.

You’re effectively transforming the asset from “lease expiry risk” to “stabilised income” before you take ownership.

How It Works in Practice

1️⃣ Get the Asset Under Contract

Negotiate appropriate due diligence and settlement periods that allow time to engage with the tenant.

You need control of the deal before you start restructuring it.

2️⃣ Engage the Tenant Strategically

This is not about pressure. It’s about alignment.

Ask:

Is this location important to their business?

Have they invested in fit-out?

Would relocation disrupt operations?

Are they profitable?

For many tenants, certainty is just as valuable as it is for you.

3️⃣ Structure a Bankable Lease

A clean 5-year lease might include:

Market rent

Annual CPI or fixed increases

Option terms

Appropriate guarantees

Commercially acceptable clauses for lenders

Sometimes a modest incentive is required.

Often, the valuation uplift outweighs the cost.

Why This Creates Immediate Value?

Commercial property is typically valued using:

Value = Net Income ÷ Cap Rate

When lease term increases, perceived risk reduces.

Reduced risk can compress the cap rate.

That compression alone can create substantial equity — without touching the building.

You’re not renovating the property.

You’re renovating the income profile.

The Bigger Picture

Commercial property isn’t about buying buildings.

It’s about controlling cash flow and managing risk.

The most sophisticated investors don’t passively accept the lease profile they’re given.

They reshape it before settlement.

Short lease → Long lease

Uncertainty → Stability

Risk → Bankable income

That’s how you move from speculative buyer to strategic operator.

Control the income first.

Then buy the property.

Recent Renovation Success

Fri, 13 Feb 2026 01:53:14 GMT

Challenge - Take this fixer upper & make it into a gem for sale.

The living room renovation was one of my favourite rooms. The VJ panels brought an elegance to the space, matching the pattern with the entry door. The plantation shutters signal that no costs were sparred in creating a welcoming and vibrant space. Our carpenters from Flintoff Constructions did a great job trimming the panels to fit smoothly around the windows & fireplace. It creates a welcoming, bright and homely feel.

The electricals were upgraded by our electrician Lachlan at Earth Tech Electrical . We had downlights installed throughout the property and general outlet upgrades for the new owners convenience next to beds and desk spaces.

In each bedroom we matched the themes with the living room and added built-in wardrobes with golden handles, along with a desk space in the master bedroom.

The kitchen had a simple uplift since its original renovation 8 years prior. Updates included re-tiling by Jackson from Olarie Tiling along the kitchen walls, creating a new space for the dishwasher, new appliances, new handles and a new bench-top.

The bathroom continued the gold, VJ paneling and tile theme from the kitchen with a beautiful stand-alone shower and emphasis on simple elegance. Our plumber Loche from Inner Geelong Plumbing was great at finding solutions to drainage problems and working with the other trades to make everything come together smoothly.

The laundry was the most difficult and risky of the whole process. There was asbestos in the walls in the laundry and toilet, so we had to be very careful. We followed every rule in the book to protect ourselves and dispose of any asbestos safely and legally that was dislodged. We also had to build in a new subfloor in preparation for the tiler to complete their works.

Once these steps were complete, it was a big relief! We could then build the sink, have the plumber complete his works, install the bench tops and carpenters could install the VJ panels ready for painting!

Outdoors was given a facelift with a lot of fresh paint, new windows put in place by the team at Windows By Geoff Case , lighting added and dozens of new plants.

RESULTS

The agents were originally seeing the property pre-renovation being sold at around the $550,000 mark. Once the renovations were complete for $70,000 and many all nighters on our end, we were able to sell the property for $755,000 .

LESSONS LEARNED

The main lesson I learnt from this renovation was that while the figures were solid considering the renovation only took 4 months... if we were to do this strategy repeatedly we would need to spend much more on trades rather than doing all the painting, gardening, demolition and cabinetry building and more ourselves. It is a great strategy if you don't have kids and/or are full of energy! However, if you do, and are time poor it can add a lot of stress as there are always unexpected hurdles to overcome. Hats off to all those property-flippers out there!

Next Moves

Redirecting the profits from this deal into a value add commercial property or an ugly duckling with great potential.

From Potential to Profit: My Next Fix & Flip Journey – Step 1. Ugly Ducking to Rental

looka_production_220123299 — Fri, 30 May 2025 04:10:27 GMT

While I usually focus on high-level strategies, mindsets, and tactics to elevate your financial position, I’m switching gears over the next few months and taking you behind the scenes on one of our own value-add residential deals.

We’re kicking things off with a modest 2-bedroom property in Geelong that’s quietly been performing in our portfolio for almost a decade. Originally purchased as a real “ugly duckling,” we gave it a budget-friendly facelift to bring it up to rental standard.

Now, it’s time for its next transformation.
�� The goal? Turn it into a beautifully finished 3-bed, 1-bath, double-garage family home — all for under $50k. Then, it’s off to auction!

The photos below show the property at the time of purchase and after its first renovation. I’ll be sharing the planning process, progress updates, and renovation insights in the lead-up to auction day.

This project will also serve as a stepping stone into a larger commercial value-add opportunity. Excited to share the journey with you!

From Renter to Home Owner and soon to be Commercial Investor

Wed, 14 May 2025 01:32:39 GMT

From Renter to Homeowner: “How Camilo & Ana Bought Their First Property With My Help.

They Are Now Ready To Purchase A Commercial Property Next.” – Celebrating Milestones

Camilo and Ana are kind, outgoing, full-time working parents with two children under five. Their life is hectic, as you could imagine!

They came to me for help with two objectives:
- To purchase their family home below market rate.
- To ensure they could secure their first investment property shortly after their home purchase.

Their minds were racing with all the different types of properties they could buy and how to prepare for their first purchase while ensuring they didn’t overpay or make a big mistake.

After helping them organize their pre-approval with a great mortgage broker, they attended a few auctions. Witnessing the price shoot up by hundreds of thousands above the advertised price and what they were willing to pay, they felt dejected.

I reminded them that auctions were designed to make people fall in love with the property, overpay, and, if they missed out, nudge them to overpay next time.

We went back to the drawing board and reaffirmed their values in terms of school zones, style of house, price point, and their desire to have an investment property shortly after their first purchase.

With this in mind, we focused exclusively on privately sold properties with all the above attributes.

To their surprise, we found the perfect house!

The agents explained that there were multiple offers on the table. With tactful negotiation, the property was secured for $20K below what Camilo and Ana were willing to pay and over $100K below their upper-end budget. This ensured they preserved their deposit for a future investment property shortly after this purchase.

Congratulations, Camilo and Ana, on becoming homeowners!!

I look forward to helping you make the jump into the property investment game next ��

How to own your business premise for free.

Wed, 14 May 2025 01:27:14 GMT

How is this possible??

Most business owners never stop and ask themselves how can I stop paying forever-rent??? How can I own the premise and not pay for it out of pocket?

Is this even possible?

The answer is, absolutely!

Here are two quick examples:

1. ABC Solicitor’s decided to move out of their $30k p.a rented 100m2 office and purchase a 500m2 building for $1.3m with a $400k deposit (As a small business you may be eligible for an 80%+ loan).

They do a few updates to the property, lease out any remaining areas, and even at a low rent of $200 a metre the building generates $80,000 in net income with the tenants covering outgoings. The property required a $900k interest-only loan requiring payment of $60k p.a. (6.6% interest rate)

ABC Solicitor’s now operates earning $20k p.a. from managing the building, saves $30k p.a. by not paying rent and will benefit from capital growth and future rent increases.

2. If the business doesn’t have a sufficient deposit on hand it could also use the owner/s super via a self-managed super fund to make the commercial property purchase.

There are many rules to consider regarding a SMSF so please seek personal advice. However, the overall outcome will likely be similar upon retirement.

Please keep in mind these principals can work in industrial and retail spaces as well. It's simply a case a sourcing the right property to meet your needs at the right price. These opportunities can be found with consistent focus and patience.

There you have it! How to stop paying rent, pay zero dollars in interest and enjoy the benefits of commercial property ownership!

How To Purchase A Commercial Property With Minimum Risk In 4 Key Steps.

looka_production_220123299 — Tue, 13 May 2025 06:24:32 GMT

Commercial property investing is complicated.

It is true, commercial property investing is more complicated than residential property investing. If you miss a simple detail you can easily overpay, if the property becomes vacant you will have to cover the debt repayments and outgoings, if you’re not great with spreadsheets you will need a team around you to ensure all is running smoothly.
Okay, how do we minimise the majority of these risks to position ourselves for the upside in 4 key steps?

1. Ensure the completion of a solid due diligence period when purchasing a commercial property.

If you are looking in quieter markets this will be much easier to accomplish than where properties are flying off the shelf. Due diligence periods are commonly between 14 days to 28 days depending on the area. This is a broad term to cover every detail of ensuring what is being put forward is the reality of the situation. I’ll go into this in more detail in a future post.

2. Know your numbers.

What is the net rent? Is GST considered? What are the outgoings of the property?

Examples of outgoings are insurance premiums, body corporate fees, emergency service maintenance checks, rates, land tax and property management fees to name a few. Ensuring ideally, all of these are deducted from the gross rent as they will decrease the net rent. The net rent is the amount that hits your account after all costs are deducted. This number is critical to get right as the price of the property is based on the net rent, as an investor.

For instance, if a property has an advertised $60kpa net rent at a 6% return but, when you unpack the numbers it’s actually $50kpa net after all costs it changes the price from $1m to $833k. This number is calculated by net rent/ expected net yield for the property = Price.

3. Create A Dedicated Property Safety Fund

Just as one should have a personal emergency fund if unexpected expenses arise, it is wise to consider having such a fund for your commercial property. Especially, if this is your first commercial investment and you are a little nervous regarding its performance.

4. Mastery Of Your Personal Income Position

Creating a savings rate safety net when purchasing a commercial property is also a great idea to de-risk the investment further. By this, I mean having a high monthly savings rate in comparison to your potential debt and outgoings obligations if the property becomes vacant.

For example if your property were to become vacant and the debt plus outgoings were to cost $3,000 per month then having a household savings rate $4,500+ per month would ensure the risk to you is minimal and you'll be in a strong position to negotiate with your future tenant.

If this is a space you are interested in and would like help in acquiring a commercial property or building your portfolio you can contact me directly on LinkedIn or email me at support@propertybuyersassist.com.

Build your property portfolio

Fri, 09 Jul 2021 07:02:52 GMT

Start building your property portfolio using these 5 quick steps.

Step 1.
First envision and clearly identify what it is you are trying to achieve from your property portfolio.
Are you seeking a certain number of properties, financial freedom, a target passive income goal? And do you wish to buy a home first or or rent for a period instead to keep your cost of living low?
Once your goals are clearly identified and aligned with your values you can dive into action.

Step 2.

Save your deposit as soon as humanely possible while embracing frugality along the way.
This means growing your income by doubling down in your career or taking on side hustles. At the same time thinking counter to how we have all grown up by decreasing your expenses to achieve your great and exciting vision.

This can be ingrained in your habits by associating pleasure with saving money every month and seeing the balance grow. And pain with spending money on items that feel and look GREAT but, that you don’t NEED. In the later stages you will be able to loosen up again, I promise! ;)

Step 3.
Decide on whether to rent and invest (Rent-Vesting) or first buy a home to live in.
The choice here is incredibly personal and is commonly based on your stage in life and values. Both paths can work out well financially. So long as one doesn’t take on too much debt only to discover there are no savings left over at the end of each month.

Buying a primary residence with additional income options is a great way to overcome cashflow hurdles especially, when buying your first property. This can be in the form of buying a house with a duplex or a granny flat and renting them out. Or simply renting out a vacant room.
Alternatively, you may decide to keep your rent low and purchase an investment property in a growing area with high yields that can be renovated on a small budget. Increasing rents further and helping cover the mortgage repayments. The choice is yours!

Step 4.

Continue saving hard and learning what is involved in managing a property.

Purchasing a property and managing a property are very different skillsets. It will take time to learn about the legislation in your state, the minimum standards and rules around leases, tenant-landlord responsibilities and working with your property manager, or tenants directly if they are living with you.

When gaining know-how in real estate nothing beats firsthand experience!

Step 5.

Build a team of professionals along the way and listen to their advice whilst never forgetting your original vision to avoid drifting off track. By this point you should be ready for your second purchase!
Arrange meetings with your mortgage broker and accountant to discuss your next property purchase and how best to structure it. Once a plan has been finalised follow through and make your next purchase.

Congratulations you now have the initial steps of building a property portfolio!

Of course, as you move through your journey the concepts and knowledge you acquire will grow. Allowing you to consider more options, bigger deals with potentially better returns and understand economic drivers of property values and rents. Nonetheless, every successful property investor has taken the above steps to get the ball rolling. The only difference between you and them is time plus consistent action 

Good luck in taking your initial steps in the property game!

How to find a great area for property investing?

test@looka.com — Fri, 09 Jul 2021 06:06:50 GMT

Before considering where to invest next, lets review 3 common patterns of capital and migration flows over the past 5 years that have generated great capital growth outcomes for property investors:

1. Investing in commodity rich states and regions. WA and Queensland have had a burst of activity over the past 5 years with energy commodities surging from 2020 to 2022 before pulling back slightly and agriculture prices overall continually rising from 2020 to 2025 as displayed in the Invesco DBA Agriculture Fund. These newfound profits for the energy and agriculture sectors ultimately find their way back into the real estate prices and rents. Whether these trends continue is up for debate however, it is good to take stock of where we are right now so we can envision where the puck is going next.

2. Shifts in international, interstate and intrastate migration have been directed towards affordable locations that offer more freedom, better weather, higher incomes in comparison to housing costs, and well run State and Local Governments.
This shift was most prominent in coastal Queensland and Perth as the exodus from Melbourne and Sydney ramped up post-lockdowns. Geelong was also a clear winner of intrastate migration from Melbourne most notably from 2020 – 2022.

3. Work-from-home high income earners moving to luxury lifestyle destinations also outperformed as the work from home trend enabled greater freedom. This included getaway locations such as Lorne in Victoria, Palm Beach in Queensland and Freemantle in Western Australia.

Where may the puck be going next?

If geopolitical tensions and war continue to escalate in Ukraine, Russia, the Middle East and perhaps Taiwan, our economy may shift gears as a greater proportion of resources are directed into defence, mining, and infrastructure spending. In the past this has resulted in a migration of defence, resources and critical infrastructure personnel to Darwin, key infrastructure locations in Queensland and Western Australia (which is already happening) and a boost in Canberra’s public service sector. This will increase rents and housing prices in those areas for a number of years, assuming it is not met with a large increase in supply. Due to the high cost of building this supply is less likely to be coming on board any time soon.

Darwin indicators showing it is primed for growth.

If this shift in the economy were to eventuate, Darwin could temporarily take the second most expensive median house value in Australia back, as it was in 2009 just behind Sydney towards the end of the last commodity boom. Darwin has since retreated to the cheapest state in the nation tempting contrarian and value investors.

Melbourne is showing great value as fear has risen in the market.

On the other hand, if you were to consider a longer time horizon than 5 years it may be wise to increase your positions in Victoria as median house values are the cheapest comparatively to the rest of the nation than they have been in approximately 20 years!

Unpacking Due Diligence In Commercial Realestate

test@looka.com — Fri, 09 Jul 2021 06:06:49 GMT

Due diligence is twofold, on one hand it is a defensive strategy to avoid making serious mistakes. A Real Estate Agents dream is to have a motivated and naive buyer that asks minimal questions and is willing to put forward an unconditional offer straight away.

The due diligence process levels the playing field and swings the balance of power onto the buyer’s side with 14-28 days of the exclusive right to assess the properties true situation. The primary reasons agents will avoid providing a due diligence period where possible is because:

        It can cool the interest in the property if it’s a new listing.
        If the property doesn’t sell at the end of the due diligence period they have a frustrated owner on their hands.
        Prospective buyers may now be wary of the property as it has failed someone else’s due diligence tests.

Nonetheless, as a buyer this is an important step to implement. The keys to due diligence from a defensive perspective on your end are to:

        Ascertain the true net rent.
        Confirm the current tenant’s willingness to continue with their lease and ensure their business is genuinely profitable.
        If the property is vacant determine the current market rent and projected vacancy period.
        Determine if the property is at, below or above market rent.
        Understand how long it would take to replace the tenant if it did become vacant.
        Review your personal financial position to confirm if this property matches your risk tolerance.
        Assess the supply demand setup in the area for that property type.

From an advantageous perspective, due diligence periods are there to confirm if there are opportunities to:

        Increase the net rent due to the property being under market rent.
        Lease currently unutilized lettable area.
        Reposition the asset from an industrial tenancy to an office tenancy for example.
        Find new revenue opportunities such as billboard leases, solar panel leases or dividing the property into smaller tenancies to increase the square meter rate of the property.

Assess the ability, costs and potential rent and equity generated from building on a vacant area of land or adding to the existing structure.

During the due diligence period it will be essential to speak with your necessary team members or tradespeople to confirm if your vision for the property is genuinely viable and what the costs to complete such actions will be. This will help to confirm the potential costs, likelihood of a profitable outcome as well as the total potential profit from such an action.

Once this is known you can purchase a property in which you have minimised the risks with strong safety nets for the property and ideally being able to improve the property to further increase its income and equity either in the short, medium or long term.