For over 20 years, Jerry Alexander has been investing in commercial properties.
During that time, he has not only had some tremendous success but has also learned a lot of lessons along the way. This knowledge and experience have resulted in many people approaching Jerry for advice on getting started in commercial property.
On an episode of Jerry’s Commercial Property Investor Podcast, instead of acting as the host asking the questions, he sat down with Darren Green, who runs the Purpose to Progress community, to discuss how he got started, what he learned, and some of the advice he provides as part of the Mastermind and Accountability programme.
Here are just some of the many highlights.
How I Got Started in Commercial Property
My investment journey first began in residential properties. After three to four years, I started looking for a bigger deal, which turned out to be a commercial building. Since taking on this asset, I continued with these types of investments and no longer held residential properties in my portfolio.
When I purchased my first commercial property in 2004, I wasn’t exactly sure what I was in for. My initial thoughts were that it was a place to park my money and collect an interest rate. However, I quickly realised you could get creative and add value more than what you can in a residential property.
The Lessons I Learned on My Commercial Property Journey
There have been so many lessons that I’ve learned on my commercial property journey. But one of the most significant occurred on the first building I purchased. I realised that you could buy a perfectly functioning, fully occupied building and still increase the value. In my case, I tripled it.
I upgraded some of the facilities, such as installing double glazing and changing the carpeting, thinking this would naturally increase the value of the building. However, I discovered that changing the offer and the rental income made the biggest difference to the overall value. Initially, the property was netting an income of £24,000 a year. Once I increased the income, it began earning £75,000 a year. After learning this, I applied it to the next commercial properties I added to my portfolio.
The Strategy I Developed
I’ve discussed my strategy on the Commercial Property Investor podcast but am more than happy to talk about it with anyone. I take a building approach, which means I find problem properties in a specific area where I’ve researched supply and demand.
One of the examples I spoke about on the podcast was office space in Livingston. Property agents would advise that the town has more than 15 years’ worth of oversupply of office space. However, looking closer, a lot of the office space was 20,000 to 30,000 square feet, which few people wanted. Instead, they needed 100 to 200 square feet, which was completely occupied yet still had a decent demand. Once you know details like this, you can start asking property agents for these types of buildings and investigate them more closely.
Helping Others Start Their Commercial Property Journey
It’s strategies like these that have made my commercial property journey successful. Getting started doesn’t have to be a daunting experience. To make it easier for you, I share my knowledge, experience, and strategies as part of the Mastermind and Accountability Programme.
If you’re looking to get started in commercial property, head over to the programme’s website to secure your position in the next enrolment.