Platinum Coaches – Students Success – 19th November 2025

In this session, Platinum head coach Dr. Tamara Read interviews student Justin Butcher about his rapid progress in commercial property.

Beginning with two negatively geared residential properties and zero commercial experience, Justin shares how he transformed his approach, built confidence through deal analysis, and ultimately secured a high-performing commercial investment—after overcoming a dramatic setback on his first attempt.

The discussion offers a practical, real-world look at how disciplined research, agent relationships, and strategic lease negotiation can create significant cash-flow and equity uplift.

Starting Point: From Negatively Geared Residential to Commercial Strategy

Justin entered Platinum in August 2023 with the goal of building reliable passive income. His existing residential portfolio was dragging cash flow, so the first step was a strategic review. After tidying up what could be improved, he shifted focus to commercial property—something he had never considered before, but quickly embraced once he understood the numbers-driven process.

To build confidence, Justin reviewed more than 100 commercial properties, narrowing them into a shortlist of 20 for deeper analysis. This repetition helped him recognise value quickly and act decisively when genuine opportunities appeared.

Deal One: A Strong Commercial Prospect—Until Disaster Hit

Justin’s first commercial contract involved a mixed-use site with multiple income streams and development potential. It ticked every box: long-term tenants, a bakery, a caretaker’s cottage, an office block and a shed with room for expansion.

But one week after going under contract, a fatal fire destroyed the rear section of the building. Still in due diligence, Justin had appropriate insurance in place but needed legal guidance to understand liability and next steps. With Pacific Law’s help—and thanks to a strong due diligence clause—he safely withdrew from the contract.

Instead of being discouraged, he treated the ordeal as a learning experience and returned immediately to deal-finding with renewed clarity.

Deal Two: A Commercial Winner in Toowoomba

Justin’s persistence and ongoing agent relationship paid off when an agent called him with an off-market opportunity:
— a 4,000 m² industrial site
— two sheds
— two long-term tenants
— strong zoning
— $1.2M asking price

Because he had already analysed dozens of properties in the area, Justin recognised instantly that it was a deal worth securing. He moved fast, offered the asking price and locked it in.

The initial numbers showed two tenants on month-by-month arrangements paying undermarket rent—an ideal setup for value-add negotiation.

The Strategy: Secure Long-Term Leases and Increase Cash Flow

The entire strategy hinged on negotiating proper commercial leases at market rates. During due diligence, Justin approached each tenant to understand whether they intended to stay and to prepare them for an increase based on real comparables.

The results were outstanding:
— rent increased from $73,000 to $110,000 per year
— cash flow moved from negative $16,000 to positive $20,000 (based on 100% borrowed funds)
— value lifted from $1.2M to approximately $1.5–$1.6M

All of this occurred without any renovation or physical improvement—just correcting the leases.

Lessons in Commercial Leasing, Management and Compliance

Justin shares candid insights into the challenges behind the scenes. Renegotiating leases required two months of back-and-forth, detailed communication and frequent follow-up. He learned that relying solely on property managers slows everything down; direct tenant conversations often achieve better outcomes while still maintaining professionalism.

He also highlights the complexity of commercial compliance—maintenance schedules, fire systems, documentation—reinforcing why proper management (not self-management) is essential for investors wanting scale.

Further Value-Add Potential

The site still has significant untapped upside, including possibilities to:
— strata title the sheds
— build additional industrial warehouses
— install signage with highway frontage
— explore solar
— subdivide parts of the block
— add multiple income streams through new structures

Justin has effectively created a platform asset—one that can continue producing new value layers over time.

Financing Challenges and Learnings

Because the property was purchased with tenants on month-to-month agreements, lease-stock lending wasn’t available. Instead, the bank assessed Justin’s personal serviceability. A construction of strong leases later would make lease-stock lending viable for future deals.

He also learned the importance of managing the valuation process in commercial lending, where the buyer—not the seller—must organise the valuer.

Beyond the Deal: Momentum, Mindset and Support

Justin credits Platinum’s structure—coaching, accountability, masterminds and peer support—with helping him stay disciplined and confident. Weekly check-ins and monthly buddy systems kept him moving forward even when deals fell through.

His next steps include:
— establishing an SMSF to purchase another commercial property
— exploring low-money-down or JV commercial opportunities
— and most recently, securing a new development site under contract to build industrial warehouses.

Key Takeaway

Justin’s story shows that commercial investing rewards process, preparation and persistence. By analysing deals consistently, building strong relationships with agents, and negotiating leases strategically, he transformed a negatively geared portfolio into one producing meaningful cash flow and equity uplift—all within a short period.