Commercial property investment by the numbers

As you will quickly discover, finding suitable commercial property investments comes down to a numbers game. And interestingly, many people consider these current times to be a buyers' market.

However, as a serious investor, you will have found it difficult to identify many really top-notch properties right now. And at the moment, this is probably your number-one concern.

When I'm helping clients to acquire an investment property, half my task is involved in actually finding it. The other half relates to packaging the deal under contract, carrying out the due diligence, arranging finance and bedding down the ongoing management.

And as I said, it is purely a numbers game — and one that requires a considerable degree of persistence.

The 20:5:2:1 Rule

While you might initially look at some 20 properties, you will probably only end up shortlisting five of them at best.

From there, you'll then undertake a more thorough analysis, to decide which of those properties best meet your specific investment objectives and buying criteria.

If you're lucky, you may end up with two properties to choose from. But invariably, it is only one property that will stand out as being suitable.

Only then do you enter the second phase of the acquisition process.

Improving your choice

Therefore, how can you ensure a reasonable selection of properties to choose from?

It all comes down to having a wide network of selling agents who know that you are continually in the market for good property.

Even though these agents are clearly acting for their vendors in each transaction, what you are really seeking is "advance notice" of potential deals before they officially reach the market.

And you achieve this through building relationships with the various agents and being a proven performer over time.

When acting for clients, this has probably been my greatest asset, having this "insider knowledge" of what's going on in the market, at any given time.

Bottom line: Over the past few weeks, I have dispelled a number of the more common myths. And also spent some time explaining the five key reasons why investors prefer owning commercial property.

However, your ongoing success hinges upon having a ready choice of properties. And unfortunately, you'll find the internet is often of little help in uncovering the really great deals.

Therefore, you need to invest the time and effort to create your own system for finding suitable properties. Or simply, put together a team of proven professionals charged with looking after your best interests.

Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, his-best.biz, which he updates regularly about the best way to get the most out of your commercial property investment.