Whatever your strategy is, finding the right commercial property deals can make a huge positive impact to your portfolio. If you think it is time for you to start looking for commercial deals, here are six different strategies to help you get started.
the right commercial deal can bring in enough cashflow to replace a salary and we all know where that can lead…
1 Local and national sales agents.
Just like residential property, there are estate agents or commercial agents who list commercial real estate for sale. Some are very large international firms whilst others are much more parochial companies with just a few partners. Each engages at a different level within the market. Larger firms tend to deal with higher value properties and have clients with multiple portfolios. The more local agents tend to deal with smaller lots, although this is not always the case. It can also depend on the knowledge of the seller, he or she may not always choose the best agent for their particular sale.
In the main, local agents who know the market well are the best place to start. Aim for some of the smaller firms to see if you can find an agent who is keen to grow their business.
2 Proactive Networking.
Does it work? Yes absolutely, we have found customers, suppliers and deals by getting out there. Networking can produce some great results, but it is no use just going out to every networking event you can find without a strategy or measurable preferred outcomes. We all know the professional networkers: they are at every event you go to and quite probably every event you don’t go to. This may work for them, but if you want to be efficient make sure you have a set of objectives every time you choose to attend an event. Always ask yourself “Is this particular event and those attending likely to help me move forward to my goals?”
Next you need to follow up! How often have you pushed yourself out there, felt awkward put in all the hard work and then you don’t actually get around to following up?
3 Online search.
There are some aggregators online, but I have found that most don’t keep their records up to date and you can spend a lot of time chasing around for deals that have already been completed. Most reputable commercial agents or surveyors do list their available properties for sale on their own websites and you can get a feel for the market, but similar to residential investment, there is nothing quite like getting out on the streets to see what is really going on.
similar to residential investment there is nothing quite like getting out on the streets to see what is really going on.
4 Building personal profile on and off line.
The best way to find deals is to attract them to you. In the beginning it was difficult to find any deals, let alone have any find me, but over time more and more deals started coming to me. As long as you stick to it I can honestly say the deals will come to you. To do this you need to be in the Swim: in the game. Sitting back and waiting for things to come to you is folly, you need to attract them.
The best way to get deals to come to you is to build your profile online and offline. This might be speaking at property events, being active on social media channels or getting on the phone to build relationships with those local agents. Our largest property came to us this way. Remember, property is a long term game, stick at it.
one of the best places to find deals is off market..
5 Auction listings.
Some great commercial investment properties can come up at auction. If you are following your local market closely you should know of these properties before they ever get there. Sometimes things can change very quickly for owners and they need to get a property sold fast, but often it languishes on the local market for some time before it finally appears at an auction.
We have not bought a commercial property at an auction yet but have secured one or two just before they went to auction. Even more so than residential you do need to know everything about a commercial property before you decide to bid at auction.
6 Sourcing agents.
In residential property investment you can leave some of the leg work involved in finding deals to property sourcers. The same is possible when trying to find Commercial property for sale. There are fewer sourcers who specialise in sourcing commercial properties, however they are out there. If you get involved in some online social media property groups you will be able to ask for some recommendations or alternatively it could be one of your objectives for going to some property networking events.
Don’t forget as you turn over more and more potential deals you may be able to source deals for other investors. We have done this and it can be a good revenue generator. As much as we would like to be able to do every good deal, it is just not possible.
Some commercial deals we have sourced have been fantastic. Lots of times I have watched substantial chunky commercial buildings go for the price of a three or four bedroom house. If chosen carefully, the right commercial deal can bring in enough cashflow to replace a salary and we all know where that can lead.
Of course one of the best places to find deals is off market… More on that later.