Scott O'Neill

probably not going to be as hard as you think but if you're around the corner in a back alley and that thing went vacant that's a very poor retail shop which you know i guess it's just like residential there's a there's blue chip and then there's properties you'd never go near even if you you know got it for half price so it's it's important to think like a tenant as well when you buy

Yeah, exactly.

And that's the great thing about, well, not the great thing, but a convenient thing about COVID is you can see the impact that these crazy times have had on the tenant's ability to pay their rent.

Because as part of due diligence, you should always ask for tenant ledgers or proof of income from your tenants, from the current vendors.

And

If they can show you uninterrupted income that's been perfectly paid for the last two to three years, that's a pretty good assumption to make that they're probably going to do the same thing for you when you're their landlord.

So this is where you can research your way out of all the question marks that you might have when you walk into commercial, like what happens if the tenant's going to fail and all that.

You can almost prove to yourself that won't happen through this type of research, calling the tenants up, finding out how they

you know, what their business plans are.

Like, you know, are they going to retire?

Are they looking to expand?

Are they employing more people and need a bigger space?

Like these are the questions you can ask in the due diligence and you get a lot of comfort around all the answers.

Or not, you might realize the tenant's about to leave and that's where you don't proceed with a deal if that would make or break it for you.

Yeah, so look, our niche is to operate under the institutional investors.

So everyone's got a super fund and you probably own parts of commercial property already and don't even know it.

Like if you've got shares of A&P, they own shopping centers and towers and stuff like that.

You probably already own some commercial without even knowing it just in your industry super funds.

But so we like playing under that space where we're not competing against those types of investors, the institutional, because we actually find they compress yields because they're literally parking money up into these assets.

When you go sub 20 or most mums and dads operate in probably the sub 20s.