The 9 Key Steps to Help You Profit from Every Acquisition

1. The 9 Key Steps to Help You Profit from Every Acquisition Chris Lang 0425 791 254chris.lang@his-best.biz  Chris Lang

2. A Typical Property Transaction … At what stage in this process do you make your Profit ? www.gal.com.au

3. Identify & ShortlistThe Right Investment Properties www.gal.com.au

4. Identify and Shortlist the Right Investment Properties The process involves matching up your Investment Objectives with a number of proven Buying Criteria. And then, rating each of the properties you think may be suitable. www.gal.com.au

5. Your 8 Investment Objectives The chosen property should : • Have enduring value • Generate ongoing cash flow • Provide steady growth • Promote super growth • Maintain lending appeal • Create future collateral • Allow cost control • Offer Tax Benefits www.gal.com.au

6. Your 12 Buying Criteria The main things for you to consider are : • Tenant Calibre • Lease Term • Emerging trends • Passing Yield • Age of the building • Flexible design • Zoning • Title options • Lease Structure • Little competition • Good position • Vendor motivation www.gal.com.au

7. Tying It All Together By combining your Investment ObjectivesandBuying Criteria into aninteractive matrix … That way, you are then able to quickly and easily Rate your potential Acquisitions. And you can do that online www.gal.com.au

8. Assess, Analyse & Compare www.gal.com.au

9. Assess, Analyse & Compare You need to create a projected After-Tax Cash Flow This is where you collate 18 elements of each property; AND distil them down into ONE single figure for easy comparison. This Internal Rate of Return (IRR) provides you with the after-tax Return on your Equity, for each property you consider. www.gal.com.au

10. Purchase Price Stamp Duty Acquisition Costs Due Diligence Loan Value Ratio Loan Set-up Costs Interest Rate Tax Rate Passing Rental Rental Reviews Un-recouped Outgoings Ongoing Management Fee Depreciation Holding Period Estimated Selling Yield Selling Costs Initial Cost Base Capital Gains Tax The 18 Financial Elements Let’s look at an exampleof how this works. www.gal.com.au

11. “Pre-Value” Your Acquisition www.gal.com.au

12. “Pre-Value” Your Acquisition Financiers lend based upon their agreed Loan to Valuation Ratio (LVR) • A Common Mistake that Investors tend to assume is a stated 70% LVR means … you’ll be able to borrow 70% of the Contract price for the property. • BUT the Financiers’ valuations can often come in at less than what you’ve paid. THE SOLUTION … Yourchosenproperty needs to be “Pre-Valued’” by a Valuer acceptable to the Financiers. www.gal.com.au

13. Negotiating the Deal www.gal.com.au

14. There are basically only 3 components for every deal you’ll Negotiate … Negotiating the Deal • Power • Time, and • Information www.gal.com.au

15. Negotiating Tools & Outcomes Approach The Result Outcome _______________________________________________________________________________ Convince You Win – They Lose Short-sighted Capitulate You Lose – They Win Costly Compromise You Lose – They Lose Unsatisfactory Collaborate You Win – They Win Rewarding www.gal.com.au

16. Know Your Negotiation “Variables” • Cash Flow • Deposit • Depreciation • Due Diligence • Purchase Price • Settlement Date www.gal.com.au

17. Validating Your Purchase www.gal.com.au

18. Validating Your Purchase To ensure that you obtain the best possible Price and Terms … ALWAYS “believe” what the Vendor says about the Property. BUT, simply reserve the right to check it out thoroughly. www.gal.com.au

19. Your Due Diligence covers 3 aspects • Legal Documentation • Contract • Leases • Financial Aspects • Outgoings • Capex • Physical Condition • Building Fabric & Equipment • Essential Services Compliance www.gal.com.au

20. Lock In Your Finance www.gal.com.au

21. Lock In Your Finance You can choose a top Property, and negotiate a truly great Deal. BUT then, watch it all unravel … simply because you have not paid enough attention to your Finance! www.gal.com.au

22. Making your Finance work for you Step #6 may be“Lock in your Finance” … BUTyou need to have already confirmed your source of potential financeBEFOREyou sign any Purchase Contract. IDEALLY you should … • Work closely with a competent Finance Broker. • In the current market, fix your Interest Rate for the length of the Lease. • Make sure YOU instruct the Valuer.

23. Ongoing Tax Benefits www.gal.com.au

24. Ongoing Tax Benefits You can legitimately shelter a large portion of your accessible income, through using Depreciation Allowances. There are basically 2 types of Allowances: • Division 40:Depreciable plant & articles [eg: Carpet, Light Fittings, Equipment, etc.] • Division 43 :Capital allowances & Structure[eg: Building Fabric and Hard Landscaping] www.gal.com.au

25. How Much of Your Propertyis Depreciable? www.gal.com.au

26. Enhance & Maintain YourProperty Investment www.gal.com.au

27. Enhance & Maintain Your Property Investment After Settlement is when you start to implementyour “Super Growth” andMaintenance strategies: • Subdivide the Title • Conduct Essential Services Inspections • Refurbish and Upgrade • Implement a Preventative Maintenance Program After 12 Months … You should strive to keep your Property in “ready-to-sell” condition. www.gal.com.au

28. An Insight into truly Effective Marketing www.gal.com.au

29. Effective Marketing With Traditional marketing … The Success of your Selling Campaign has been measured by … the number of on-site inspections generated for the property - principally, via the daily media. www.gal.com.au

30. Effective Marketing … Solely focusesupon the actual number of highly-qualified buyers that your campaign generates. And you are only able to do this by adopting the latest in cost-effective“Stealth Marketing”strategies. www.gal.com.au

31. Traditional Vs Stealth Marketing www.gal.com.au

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34. Comparing the Results How does this work in real life? www.gal.com.au

35. Tracking your Campaign Response www.gal.com.au

36. Campaign Response … www.gal.com.au

37. Campaign Response … www.gal.com.au

38. Campaign Response … www.gal.com.au

39. To Improve your Chances of Success … You need to knowtheRules of the Game! • THINK of a number between ‘2 and 10’. • MULTIPLY that number by ‘9’. • ADD the 2 digits of your answer together. • From that single figure … SUBTRACT‘5’. • Now, CONVERT that new number into a Letter …Where: 1=A; 2=B; 3=C; and so on. • Think of a European COUNTRY beginning with that Letter. • Take the 2nd Letter in that Country’s name and … • Visualize a 4-legged ANIMAL starting with that letter. www.gal.com.au

40. Questions & Answers www.gal.com.au

41. Potential Syndicate www.gal.com.au

42. Commercial Property Cycles ONLY in the final 3 years, are all three Cycles are “in Sync”! www.gal.com.au

43. Capital City Office Markets www.gal.com.au

44. The 9 Key Steps to Help You Profit from Every Acquisition • Disc #1 • How to Identify and Shortlist the right Properties. • A quick way to … Access, Analyse and Compare. • Pre-valuing your Acquisition for Comfort. • Disc #2 • Negotiating the Deal to your advantage. • Validating your Purchase. • How best to Lock-in your Finance. • Disc #3 • Setting up your ongoing Tax Benefits. • Enhance and Maintain your Profit. • An Insight into truly Effective Marketing. Chris Lang 0425 791 254chris.lang@his-best.biz  Chris Lang

45. The 9 Key Steps to Help You Profit from Every Acquisition Disc #1 Chris Lang 0425 791 254chris.lang@his-best.biz  Chris Lang

46. The 9 Key Steps to Help You Profit from Every Acquisition Disc #2 Chris Lang 0425 791 254chris.lang@his-best.biz  Chris Lang

47. The 9 Key Steps to Help You Profit from Every Acquisition Disc #3 Chris Lang 0425 791 254chris.lang@his-best.biz  Chris Lang

48. www.gal.com.au