How Building a Commercial Property Portfolio is Like Building a Business
by Mish Daniel | Free Information
In our latest video, Mish Daniel spoke with special guest Guy Wilson about how building a commercial property portfolio is similar to buying a business.
Guy Wilson is incredibly adventurous and has achieved much success in his lifetime. He has co-founded one of Australia’s largest software development companies, travelled the world and has enjoyed a successful professional career.
Guy has extensive experience in the business world, and his insights on what it takes to succeed in today’s fast-paced and competitive market are invaluable.
He is passionate about helping aspiring entrepreneurs by making the right connections.
Listen to the full conversation below, or keep reading.
The Similarities Between Being a Business Owner and Building a Commercial Property Portfolio
Owning a business and building a commercial property portfolio is similar in many ways.
However, sometimes people get so excited about their ideas that they become too involved in their business or investment. It’s important to remember that as a business owner, you own the business, and as a property investor, you own the property.
This means that you should have control over your business or investment rather than letting it control you.
Network and Build Relationships
If you want to start a business or build a commercial property portfolio, don’t try to go it alone!
To succeed in business or investing, start by building relationships with others. Don’t rush into things too quickly, even if you have a good idea.
By building a network, you can get feedback on your ideas, improve them, and connect with the right people to help you succeed.
Nowadays, building a network is easier because people are more open to connecting online. But remember, people should get to know you, not just your business.
Creating a side business while working can be beneficial because you can concentrate on building relationships without the pressure of running the business full-time.
In commercial property investing, your tenants are like your business partners. By taking care of them and introducing them to valuable contacts, you can gain their appreciation and loyalty.
That’s why at Revolve, we not only connect our clients with the right people but also teach them to nurture their tenants because we know that building good relationships with tenants is key to success and creates a win-win situation, such as reasonable rent increases.
Plan, Prepare and Limit your Risk
To succeed in either business or investing, it’s important to have a solid plan and a supportive network of people around you. Starting small and gradually growing over time is also a smart approach.
And speaking of smart approaches, creating multiple income streams is always a good idea in business. Investing in commercial property, for example, can provide a passive income stream that many business owners dream of.
But here’s the thing: don’t rush into anything! Take the time to research and plan before making any investment decisions. And remember, investing in commercial property is just one part of your overall business and investment strategy.
Of course, it’s also important to avoid taking big risks that could jeopardise your financial stability. Borrowing too much money or making hasty financial decisions without fully thinking them through can be risky, so always proceed cautiously.
If you’re considering investing in commercial property, it’s a good idea to have some basic business knowledge, just like you would if you were starting your own business.
There are some important questions to ask about the business that will be tenants in the property you purchase:
You should also understand basic things like yields, cap rates, and projections, which might sound confusing, but don’t worry!
At Revolve Commercial, we offer a range of helpful spreadsheets that you can use to calculate important aspects like rental yield, cap rates, and projections.
A Tenant Ledger is a good example of the numbers you need to look at to ensure it’s a good investment. You can analyse the numbers in just 10 minutes and then transfer the information to a spreadsheet to determine if the investment is going in the right direction.
Calculating rental yield is easy and quick if you have the right tools.
In the example of our spreadsheet below you can enter the rental amount and property value, and you’ll get the result in seconds!
We use this spreadsheet to help us negotiate the best price for our clients when we meet with agents.
For example, if the rental value is $150,000 and the seller asks for $2.5 million, the yield would be 6%.
Thinking About Starting a Business?
If you are interested in starting a business reach out to Guy. He founded Connect Collaborative because he wants to help people just like you. With his expertise and guidance, he can connect you with high-value individuals who can help you achieve your goals. So why not reach out to Guy and start building your network today?
You can find his details in the image below.
Remember, seeking wisdom from others is key to success in business and investing!
If you have any questions – book a no obligation 15-minute chat with one of our experts at Revolve Commercial. In this call, we’ll address your questions and map out what your potential next steps are to growing your wealth portfolio.
Don’t wait – book your free call today