Learn how an easy to implement strategy of focusing on high income, commercial properties can ultimately help you replace your income and reap long-term rewards.

1. Master Class: 10 Tips to replace your income
with commercial property investing
With James Dawson
Commercial Property Cashflow
Blueprint

2. We help investors
build and manage
their property portfolios

3. In partnership with…

4. Real Estate Investar’s tools

5. Master class webinars
• Designed to share knowledge.
• Desire to provide extra value to our
clients.
• Great for both new and experienced
investors.
• Plenty of opportunity for Q&A.
• We will run these regularly throughout
the year, and sometimes involve our
partners to provide additional insight.

6. Maximise audio quality
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downloads.
• Faster internet = better quality audio.

7. Discover how to replace your income with the passive
income power of commercial real estate investing

8. About me

9. What we will cover tonight
• The fastest way to replace your income using real estate.
• How to get 6%+ returns from capital city and regional properties.
• Why commercial real estate is a sleeping giant, if you want access to instant
positive cash flow.
• The 5 myths of commercial property busted.
• How you could be just 3 deals away from retirement… maybe even just one.
• Residential vs commercial: which one is best and why?
• Where you can get great positive cash flow deals day in day out
• Plus much much more…

11. From $33k to $100k in six months

13. My third
property
Creating win-win
situations

15. Average residential yields are LOW

16. Residential Commercial
Interest at 5%
Returns
Annual Income
Annual Profit /Loss
Example: Buy a $500,000 property
+$5,000 to $25,000-$5,000
$20,000
4%
$25,000
6%-10%
$30,000 to $50,000
$25,000

18. Module 1
How to identify the right properties

21. Go from ‘flying blind’ to strategic cash flow property investing
Strategic Shift #1

22. Why is this so important?

23. I look at;
• Higher than average yields
• Long-leases
• Secure tenants
• Upside
What does this mean in reality?

24. Cash flow:
Let's say all up cost 195k
Net Income = $14,532
Repayments @ 5% = $ 9,750
Positive Cash flow = $4,782 pa

25. Mike’s cash flow deal

26. Total rent $72,800
Outgoings $39,381
Net rent $33,419
Mike’s cash flow deal

27. • Don't just buy anything that gives you an 8% + yield as some carry greater risk.
• I give my clients an 18 step checklist to go through before they buy a property.
• I can't go through all those steps now due to time, but do your due diligence.
Word of caution…

28. Modul 2
How to buy right

29. • Spikes your yield
• Gives you instant equity
Why buying right is so important

30. When I start negotiating, I pay what will give me an acceptable yield for
the location and property type – lets say 8% plus.
That’s my starting point.
Nothing to do with asking price.

31. • Start close to home
• Research online
• View properties – talk to agents and tenants

32. Kate’s Launceston deal 2014

33. Kate’s deal: the numbers
Advertised at $750,000
Gross income of $90,000
Outgoings $29,000
Net Income $61,000

34. Kate’s deal:
The numbers on settlement
Purchase Price $660,000
Stamp duty $25,500
Legals $2,500
Building Inspection $900
Planning consultant $500
Travel $1,000
TOTAL $690,400
Net return $61,000 /$690,400 = 8.8%
Loan payments 100% $34,500
Positive Cash Flow $61,000 - $34,500
= $26,500 per annum

35. Kate’s deal:
The numbers now
Gross rent Oct. 15 $99,312
Outgoings $30,000
Net return $69,312
Net return $69,312 / $690,400 =
10%
Loan payments (100% ) $34,500
Positive cash flow $69,312 - $34,500
= $34,812 per annum

36. Mugs pay
‘asking
price’
Pro
investors
pay what
gives them
yield / goal
Which would you rather be?

37. Don’t just offer ‘low’
You need to ask the right questions to
educate the vendor to be happy with
that low price.
I show my clients how to do that and
it works like a charm.

38. Commercial Property Illusions

39. Illusion 1- Too expensive

40. $145,000

41. $67,500
$185,000
$179,000

42. Illusion 2- Too complicated

43. Less emotion = less risk
Is this worth more… than this ?

44. Value based on income

45. Illusion 3- Long vacancies

46. Long Leases
Long leases: Investment lease driven

47. Tenant’s livelihood tied to property

48. Long term tenants

49. How to maximise property value

50. Maximise your properties – create profit windfalls!
This is important because:
• If you're starting with a low equity
base it gets your portfolio moving
• Gives you more capital to play with
that you can buy more cash flow
assets

51. What do I mean by this ?
Hidden upsides;
• Land to develop or build above
• Strata title – sell parts off.
• Under market rent – increase to market
• Divide large spaces

52. 3 tenants asking 845k
- back lane
- build more?
- strata?
- buy at 8.5% income net 71k
- Repayments 44k at 5.2%
- 27k positive cash flow
With upside

53. Newcastle supercharge

54. Bondi equity supercharge

55. Bondi Supercharge

56. Bondi Supercharge

57. Bondi supercharge

58. End value Increase = $650k + $650k + $700 = $2,000,000
Cost to build $1.1m
Net equity increase $900,000
Rents from 3 new apartments = $98,000 pa
Cash flow increase = $86,000 pa less repayments on $1 mill @ 5.0%
Positive cash flow of $86,000-$50,000 = $36,000 p.a.
plus the existing cash flow = $91,000 pa

60. This is not for everyone…
If you don’t know how to work with councils, and the right
professionals it can be a minefield.
I have all the systems for that.

62. Gerard’s Gold Coast deal 2015

63. Gerard’s Gold Coast Deal 2015
“Hi James,
Just like to give you some feedback. We joined you 21st
April and 49 days later we have our first commercial
property. Yes the owner of the Butchers shop in
Landsborough has met us almost in the middle at $310k
with a net return of $31,150 (10.04%) now we have to find
the money fast and become unconditional.”
“Initially I was dubious about the whole process and the
figures bandied around on your programs just seemed too
good to be believed, but after getting this I still can’t believe
it really. The tenant has agreed to sign a variation of a new
4 year and 3 + 3 option so after 4 years it will be returning
11.75% ($35,038pa).” Gerard

64. Gerard’s Deal –
The numbers on settlement
Purchase price $310,000
Stamp duty $10,000
Legals $1,500
Total $321,500
Net return $31,150 / $321,500 =
9.7%
Loan payments 100% $16,075
Positive cash flow $31,150 - $16,075
= $15,075 per annum

65. Do you want know how to do this?

66. Commercial negotiations - second bite of the cherry

67. John’s Proserpine Deal 2015

68. John’s Deal - The numbers
Advertised at $340,000
Gross income of $38,500
Outgoings $4,500
Net Income $34,000

69. John’s Deal
The numbers on settlement
Purchase Price $280,000
Stamp duty $9,000
Legals $2,000
Building Inspection $900
Travel $1,000
Total $292,900
Net return $32,000 / $292,900 =
10.9%
Loan payments (100% ) $14,500
Positive Cash Flow $32,000 - $14,500
= $17,500 per annum

70. How would you like me to show you a single
deal that you could retire on?
Tim Hart - one great deal
“I found James Dawson’s home study course to be extremely
comprehensive and easy to follow. It's given me the
confidence to start negotiating multimillion dollar deals and all
on them with little to no money down and massively cash flow
positive “The Shepparton deal settled on the 19th August.
A few months before settlement I had Jaycar resign a new
lease for more money, a tenant sign a 5 year lease to take the
vacant shop, and a load of rent increases. J It was great. The
valuation came it very conservatively at $4.35m and I got
$2.7m from ANZ for my $3m purchase price. $20k a month
positive cash flow, Great deal.”
Tim Hart

71. There’s two roads you can take

72. 1: Go it alone and learn by your own mistakes
OR
2: Use my 33 years of experience, tools, calculators,
strategies, checklists and legal templates to shortcut
your journey.
Let me tell you about my Commercial Property Investing
training programme

73. How does it work?
• Identify - Finding the right properties is tough. Very few people have a clue
about commercial property and no one teaches it like me.
• Buy – How do you make sure you don’t pay too much? How do you get the
right lease?
• Maximise – How do you maximise properties - see value that others don’t
see.

75. Core training
and reference
manual

76. Section #1
- Preparing for Commercial Property Success
You will discover:
• Examples of recent advertisements on the different types of properties you can invest in (and
exactly what to look for). (Pages 7-8)
• Due diligence (in a template format) that you need to complete to make it easy for you to get
finance. (Page 14)
• Why commercial property is NOT more risky than residential (& why it actually can have a lower
risk and lower vacancy rate). (Page 10)

77. Section #2
- How to locate opportunities at the right price
You will discover:
•What really drives capital growth in commercial properties (boosting this can
quickly add tens of thousands of dollars to the value of your property)
• A simple formula to quickly work out the value of a property within minutes
(makes it almost impossible to get ripped off). (Page 37 - 38)
• The best areas to invest in (for low risk & high returns). (Page 39)

78. Section #3
- How to work with real estate agents, valuers
and solicitors
You will discover:
• The six best initial questions to ask a commercial real estate agent (Use
this sneaky technique to find out all the underground information about a
local area without paying a cent. (Page 26)
• The best commercial real estate agents to call first. (Page 69)
• A sample phone script for talking to an agent. (Page 98-99)

79. Section #4
- How to negotiate the best deal
You will discover:
• A sneaky technique to get more information about a deal. (Page 97)
• 5 different terms that can be negotiated (and why the terms can be almost as important
as money). (Page 101)
• One of the best negotiation questions you can ask to an agent or vendor (this can get
them to slash the price by 10% or more, putting thousands of dollars into your pocket within
seconds). (Page 107)

80. Section #5
- How to find stellar tenants and property managers
You will discover:
•What to ask for to quickly see if the tenant in a commercial property is going to give
you headaches down the track. (Page 131)
•11 things you must check for to avoid a nightmare tenant
•What you should do every 6 months with your tenants & properties (makes your
tenants happier, lowers your odds of future headaches).

81. Section #6
-How to add instant value to your Commercial
property
You will discover:
• 2 simple examples of how to add value to a commercial property, adding
thousands of dollars to your investment. (Page 15)
• How to get INSTANT EQUITY on a commercial property after your purchase
(factor this into your strategy - but NEVER let the seller know about it). (Pages 82-
83)
• A quick way to increase your rent by $200 a week (quite often, tenants love it
because it drives more people into their shop. Wait until you see what it does to
the VALUE of your property). (Page 243-244)

82. Section #7
-How to get money for Commercial Property
even if you’re low on equity or cash
You will discover:
•Doing this "legwork" for your valuer could attract the extra borrowing power you
require to push a loan through. Takes just minutes, extremely powerful. (Page 92)
•What to do if you’re short on cash-flow. Find out why getting vendor finance on
commercial property is as easy as 1, 2, 3. (Page 49)
•A step-by-step action guide on exactly how to search for finance (do this to get
your deals passed in no time at the lowest possible interest rate. In addition, find out
the six questions to ask about loan products before signing on the dotted line). (Page
158-162 & 166)

83. The core video training modules

84. Module 1
• Getting ready to invest
• Organise to keep track
• Build your team
• The basics of real estate investing –
why?
• Types of commercial properties
• Basic terms and formulas
• Costs to purchase

85. Module 2
• How does the commercial market
work?
• Mini due diligence
• Cap rate - exercise

86. Module 3
• How to develop your own plan
and strategy for commercial
property investing.
• Phases of becoming financially
independent.

87. Module 4
• How to find deals.
• Tips when talking to agents or
vendors.
• Exercise

88. Module 5
● How to arrive at a value & how to
choose a valuer.
● How to value a vacant property.
● Negotiating a deal.
● Make offer in writing.

89. Module 6
Due Diligence
• Basic due diligence.
• Due diligence checklist.
• Physical property due
diligence.

90. Module 7
Finance
• Don’t fear debt.
• How to search for finance.
• Know about the various loan
products.
• How much will banks lend?
• What are the other costs?
• What personal information do
lenders need?
• What property information do
lenders need?
• Vendor finance.
• How to present a proposal for
finance.

91. Module 8
Leases and property management
• Why leases are the backbone of a
commercial investment.
• What a lease should include.
• What is a gross lease and a net lease?
• The assignment clause.
• Important factors in lease negotiations.
• Lease processes.
• Property management.

92. Bonus Modules – Module 9
• Supercharging.
• Buy property with hidden upsides.
• Review existing investments.
• How to check potential.
• Running the numbers.
• Use consultants – tips.
• Some very basic upsides, often
missed.

93. Bonus Modules – Module 10
+

94. Bonus Modules – Module 11
+

95. Resource: DVD 12

96. Commercial property in action
Audio compendium
• How to win - not lose when a tenant sells their business.
• Interview with commercial property investor.
• Creating a win - win deal when a tenant sells their business.
• Everyone can win here, the old tenant, the new one and the
landlord.
• Tips on rent negotiation.
• Interview with a tenant.
• Market rent reviews - the pros and cons.
• Quick tips on how to create extra value.

97. All Of
Everything gets sent direct to your door

98. And you also get unlimited access to the members only site

99. From the comfort of your own home you can learn, review or expand your
knowledge and become a successful commercial property cash flow investor.
Inside the members area
Full access to the digital version of the core training modules
Plus you get access to the exclusive, online only training components:

100. Hot property deal searches
 I regularly find deals that have excellent potential and upside.
 I review these properties and give my clients a detailed analysis of each.
 I mention what you will need to investigate, possible upsides and often
review the numbers for you, so you can see how I think.
 These are deals that are live and in the market right now.
 Whether you are ready to buy right now, or you are between deals you can
learn from the analysis of each of these deals.
Most of my clients believe that once you’ve done the core training,
‘these videos and reports are by far the most valuable part of the course’

101. Property search example
Here’s an example
of what you’ll get:
✓Short video
✓PDF document
✓Links and info

103. If you are market ready you could buy this right now…
Deal Summary:
$80,000 + potential positive cash flow.
3 ‘hidden’ upsides
Almost retire with this one property.

104. Deal review example

106. Momentum Power Sessions
The latest pro updates on any commercial
property tips, strategies and tools you
need to know about;
 I upload commercial real estate content
to the site that contains topical info.
 I talk to the professionals on a daily
basis and if I feel you need to know
about a certain topic I’ll create a short
and sharp powerful session in video
format and get it to you.

107. Community Q & A section
• You’ll be able to take part in our community Q
& A section where members can ask questions.
• I and other members of the community can
answer or share their experience.
• High productivity mini-forum purely for specific
questions.
• Fast becoming a great resource for sharing
contacts and experts in different areas of the
country if you happen to be looking at
properties away from where you live.

108. Monthly Q & A video training sessions
You’ll get access to my members only Q & A email direct to me.
Once a month I go through all your questions and specific deals you may be
working on and answer your questions in detail.
Members ask all kind of questions, so even if you don’t have anything one month
you can still learn a huge amount by seeing what the other community members
are working on.
I can even review your potential deals (and keep the address private) so others can
learn from your deal without knowing which property it is.

109. Q & A training archive

110. To summarise…

111. Commercial cash flow property coaching and mentoring program Value
The A-Z commercial cash flow property blueprint (massive manual – 7 secrets to cash flow success) $1,995
The commercial cash flow professionals 8 module online seminars $2,995
3 bonus fast growth / fast cash flow modules $1,295
11 DVD’s of the core training for your educational library $995
Resource DVD – commercial property leases, documents, letters and templates compendium $1,995
Lifetime membership site access including all course updates and ongoing training including my spreadsheet
cap-rate and feasibility calculators
$2,000
Commercial property in action audio compendium $497
Regular deal search videos of hot deals in the market $995
Momentum power sessions $795
Community Q&A mini forum section $500
Monthly Q&A sessions $1,500
Total program value $15,562
Get started today for just…
$349 deposit and then 11 monthly payments of $349 (Total $4,188)
Or
Save $1,193 with one payment of just $2,995

113. Question time…
Take advantage here:
commercialrealestateinvesting.com.au/reispecial
Get started today for just…
$349 deposit and then 11 monthly payments of $349 (Total $4,188)
Or
Save $1,193 with one payment of just $2,995