Want to find out whether commercial property could work for your situation? Book a strategy session with Helen:
https://link.unikorn.com.au/widget/bookings/unikornstrategyzoom
In this episode of the Commercial Property Investor Podcast, Helen sits down with Stephen, an investor who moved from residential property and development into commercial property after getting tired of funding negatively geared investments from his own pocket.
Stephen shares how two commercial properties now generate more than $120,000 in annual passive income, why his original fears about commercial finance were misplaced, and the lessons he learned about tenants, cap rates, due diligence, and building the right team before buying.
Helen and Stephen dive into:
◼️ Why commercial property is not limited to shopping centres and massive warehouses
◼️ How smaller commercial assets can be far more accessible than new investors expect
◼️ Why a tenant’s income can support commercial-property finance
◼️ The mindset shift from topping up investments to receiving surplus cash flow
◼️ Why commercial property values can rise when you secure the right tenant
◼️ How cap rates help you assess whether an asset is priced correctly
◼️ Why Stephen moved away from buy-and-hold residential investing
◼️ How his first commercial property rose from $1.235 million to more than $2 million
◼️ Why commercial property can deliver both capital growth and growing rental income
◼️ How a Bundaberg box-factory property became an income-producing asset
◼️ Why buying the property is different from buying the tenant’s business
◼️ How tenant-paid outgoings change the cash-flow equation
◼️ Why an online listing is not enough to assess a commercial property properly
◼️ The due-diligence checks that protect you from a bad tenant, building, or lease
◼️ Why education and a specialist commercial buyer’s agent can reduce risk
◼️ How cash-flow-positive assets can support future deposits and reduce portfolio pressure
00:00:00 Stephen’s $120K-plus passive income from two commercial properties
00:00:56 Moving from residential property into commercial
00:01:37 Why commercial felt big, scary, and hard to finance
00:02:52 Leaving development and residential behind for cash flow
00:04:27 The first month of positive cash flow
00:07:08 Why Stephen stopped buying buy-and-hold residential investments
00:08:37 The first commercial property in Singleton
00:10:20 Capital growth and rising income over eight years
00:12:37 The second property: a Bundaberg box factory
00:15:14 Buying the building, not the tenant’s business
00:16:06 Tenant-paid outgoings and net versus gross yield
00:17:53 Insurance, management fees, and land tax
00:19:42 What you are really buying in commercial property
00:20:38 Why online listings are not enough
00:22:48 Off-market opportunities and building the right team
00:24:05 Commercial-property due diligence
00:26:17 Checking the tenant, zoning, building, income, and competition
00:30:23 Stephen’s advice for first-time commercial investors
00:31:24 The risk of funding negative residential investments
Follow for more insights and updates:
Website: https://helentarrant.com/
Buyer’s Agency: https://unikorn.com.au/
LinkedIn: https://www.linkedin.com/in/helentarrant/
Instagram: https://www.instagram.com/helentarrantofficial/
Facebook: https://www.facebook.com/helentarrantcommercialproperty
TikTok: https://www.tiktok.com/@helentarrantofficial