This Will Keep You POOR - Commercial Property Investing

Certain commercial investment properties will keep you poor. I explain the types of commercial properties where this can happen and show you the type of tenants to do extra due diligence on along with the 3 critical things you should do to avoid losing money.
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00:00 What You'll Learn
00:44 The Problem and Example
03:16 How To Spot It
04:18 This Will Keep You Poor
09:04 3 Checks Commercial Property Investment
#commercialpropertyinvesting #propertyinvesting #commercialproperty

[@StephenDuncombetv]

🎯 UpLevel your Property Portfolio with Commercial Property! Learn how to find, research, analyse, buy and manage Commercial Property to maximise your cash flow with the least amount of risk and lowest amount of aggravation to achieve financial freedom sooner. 👉 bit.ly/PIWuplevel 🎯

[@DianasReviews]

Thanks for sharing. Yes mom & pop shops are struggling

[@just8093]

Some great advice! Thank you

[@StephenDuncombetv]

Glad it was helpful!

[@emmanuelfinance921]

Great video and great editing mate

[@StephenDuncombetv]

Thanks Emmanuel I try hard with the editing and its nice to know it gets appreciated.

[@benjohnsmith78]

Very informative video - obvious points made, but very true and helpful to know.

[@StephenDuncombetv]

Glad it was helpful!

[@anillchandi]

Brilliant video as always!

[@StephenDuncombetv]

Thanks 😃

[@richardburke952]

Great video Thanks

[@StephenDuncombetv]

Thanks Richard 👍

[@jujujonbitcoinisplanbcrypt9618]

Wow great video

[@StephenDuncombetv]

Thanks for watching 🎬

[@AnilKumar-gz6yk]

Which website lists the flex properties

[@missionDan]

Hi, fantastic video and appreciate the advice, its like it was tailor made for me directly to the point that i get offered the same property’s from REi, interestingly they seem to offer the same rough package of red floors, red shutters and all new tenants on 10yrs but rarely a company, mostly an individual, it always seemed too good to be true to me but hadn’t considered them as more of a risk so thats a fantastic warning. Obviously the concern is losing that tenant and being liable for the rates, wonder if you can tell me… if they are exempt from rates does that not follow on to me in any way after the 3month relief? Or as in the no50-no54 (you may have recieved on Wednesday) would i need to pay the 1400 a year rates? This is a concern, especially in that valley area where typically business and spending isnt great

[@StephenDuncombetv]

Hi Dan. Yes all those properties are “dressed” the same. The seller is buying like empty larger warehouse splits them up and does a basic clean and paint job. Gets in a tenant (anyone will do) and then offloads it as an investment. There’s probably no due diligence done on the tenant as they want to sell it so they won’t get the agro when they don’t pay. You could be lucky, but there’s probably better deals to be had in better locations even if it means less income but a better tenant. They used to offer them at 10% cap. Now at 8% cap. At 8% there lots better. I’m working with people on sourcing commercial deals, so email me if you need help ( emails in about section).

[@missionDan]

@@StephenDuncombetv much appreciated, im reluctant to take any of your time as im sure you are busy, i currently own a 14 unit industrial estate but im frankly inexperienced, im about to sell a property and with 200k im looking for something else commercial in the next year or teo. I will email you and make contact and would seriously appreciate the odd bit of advice here and there. In reality wales doesnt really appeal as im in the south east and would prefer to be within an hour of gatwick

[@paulopaiva8115]

I have a commercial warehouse similar to this, I use half of it for my company and rent out the other half and it’s been 2 years but lately they have been paying late talking like 2-3 weeks they are starting to have liquidity issues

[@leonhenry4861]

Not your problem, get a solicitor to start to get them out, rather be out of pocket for a few months and get somebody that pays on time

[@simondeeming3732]

I'd like to know if our JV partner's SIPP can be used to finance a commercial conversion where there's 2 other JV partners . . . can you help?

[@StephenDuncombetv]

Best to speak to a SIPP specialist as they know the compliance issues.

[@dinogreece]

Hi Stephen. I currently rent a shop and run a successful small business in Glasgow. The shop is pretty small, but in a great location. I would like to buy my own commercial property. The problem im facing is, i just cannot find anything for sale online anywhere. I've now been actively looking for the last 2 years.

[@StephenDuncombetv]

I’m assuming you’re exaggerating as there’s plenty for sale everywhere 😃. I bought 4 in the last 2 years. If you would like my help send me an email but I do charge a fee.

[@dinogreece]

@StephenDuncombetv I've put myself on your list. Sorry I should have been more specific. I'll be running my business (high end men's grooming) from the premises, so it has to meet certain requirements. Location, parking, footfall etc. Thanks for getting back so promptly.

[@persistentone3448]

What is the smallest unit size for individual tenants that you would consider on a flex warehouse space?

[@StephenDuncombetv]

2000 sqft.

[@bartoni79]

On a salary (ie not a business owner), is it easy to get a commercial mortgage with a 20% deposit?

[@StephenDuncombetv]

Nope. Nothing to do with being a business owner. You’ll need at least 25% deposit depending on the type of commercial property. Worst case 40% deposit.

[@knighthawk3559]

I was looking at the same estate in Bargoed Wales.... With the red roller doors. Did you buy a unit there or not? If not, what was your reason?

[@StephenDuncombetv]

No for the reason in the video.

[@knighthawk3559]

@@StephenDuncombetv great reply 👍🙄

[@kingdoggie5231]

Hi Stephen, I’m accumulating capital to get into commercial property market. I’m also 23 and I’m not sure whether it’s too late to start learning about this. Please can you kindly let me know if it’s worth it to learn and get into this industry, hopefully by the time im 32-33

[@StephenDuncombetv]

Hi. It’s never too late. The property market works in cycles along with the global economy. Look back at the property market over the last 50, 20 or even 5 years and you’ll see that owning property has always improved over time. The best thing you can do is start at 23 as you’ve got at least another 50 years to be in the market.

[@bendover2425]

Too late? Lol have you even began anything yet? Maybe 2-4 years into working full time 😂 start by 30 and you have TEN full years to learn your craft by 40!!!

[@kingdoggie5231]

@@StephenDuncombetv understood, thank you!

[@sambuka10000]

Hey Stephen, would it not be worth getting a commercial property management company to manage the unit and the tenants, so you could just collect the rent and sit back? or is there a specific reason you manage them yourself?

[@StephenDuncombetv]

I did get a management company to look after them! You can never sit back and relax with a management company unless the tenant and lease are right, and then you don’t need a management company.

[@sambuka10000]

@@StephenDuncombetv Cheers Stephen appreciate you getting back to me, so basically as long as you do your due diligence and have the right lease in place you can save yourself fees aha

[@frasermyles9928]

What are the benefits of renting out as a business or an individual? Thanks

[@StephenDuncombetv]

I prefer to have larger companies as tenants who make healthy profits each year if it’s an investment so you know they won’t have hopefully issues with cash flow. Individuals tell you they are startups and likely have little cash flow available if they hit a tough time in their business.

[@frasermyles9928]

@@StephenDuncombetv Thanks for your reply. As a landlord should I be registered as a business or as myself? Property owned outright. Thanks

[@StephenDuncombetv]

It depends on your income level. You should seek professional advice from your accountant who can assist you.

[@H80989]

Did you pay any income tax as it is in the US i assume ? And you're resident in the uk? Thanks

[@StephenDuncombetv]

You pay tax in the US and claim it under double taxation treaty between the two countries.

[@H80989]

@@StephenDuncombetv thank you, would you not be able to claim for a exception due to the double tax treaty? Is their w form for that? Love your channel 👍🏻

[@StephenDuncombetv]

Yep you don’t pay tax twice. Your accountant will be able to explain the details.

[@H80989]

@@StephenDuncombetv thank you sir

[@bartoni79]

What made you buy in the states as your first commercial property?

[@StephenDuncombetv]

It was after the GFC and price per sqft was well under replacement value. The dollar was also low as an exchange rate so my money could buy even more. I was buying debt free or on vendor finance. I already had a property management company in the area I would use to help manage them for me.

[@scottstempmail9045]

You were paying 5,000/month for property taxes? Where is this horrible location so that we may all know where to avoid buying?

[@joepower5963]

Most places in Cook County in ILLINOIS w Fritz the CCAO

[@arrowarrow17]

I wouldn't buy in the UK and US. I would not buy with a mortgage.

[@bendover2425]

Then you will never own and property lol have fun putting down $350k 😂 good IF you can but 99.9% can’t

[@leonhenry4861]

@@bendover2425they’re obviously in the .1% who have loads of 💰 😂

[@MD-ix3hq]

👍

[@drking3000]

If you don't evict them you are a crappy landlord