Rich lister who built $7 million fortune ‘without help' reveals ‘common mistake' costing Aussies
Finding a lucrative commercial property deal requires more than just luck. It's about strategy, research, and knowing where to look.
I bought my first investment property in 2010 with a $60,000 deposit after saving diligently for five years. By 2018, my wife, Mina, and I had built a portfolio of 28 properties generating $300,000 in annual profit and around $7 million in equity.
And let me be clear, I didn't receive financial help, gifts, inheritance, or even live rent-free at home into my late 20s.
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I built my fortune from the ground up through strategic investing, and now, I help others do the same.
Over the years, I've identified key strategies that separate a good investment from a great one.
Finding a lucrative commercial property deal isn't just about luck, it's about spotting emerging trends, focusing on strong cash flow, leveraging data-driven insights, and thinking like a developer.
These principles have allowed us to build $150 million in personal wealth and be included in AFR's Young Rich List three years in a row.
If you want to secure profitable commercial property deals, here's what you need to know.The most lucrative deals often lie in areas on the cusp of transformation.
Investing in up-and-coming neighbourhoods or underdeveloped regions before they boom can yield significant returns.
Similarly, getting into an asset class before it gains mainstream popularity can give investors a first-mover advantage.
Many investors wait for interest rate movements before making decisions; a common mistake.
That's what the masses do.
The best opportunities come when you act ahead of the finance markets, not react to them.
Unlike residential property, where many investors chase speculative capital gains, commercial property investment should focus on reliable cash flow.
Success is about building a steady income stream that supports long-term wealth.
The good news?
Properties that generate strong cash flow often also deliver the best capital growth results.
With a growing flight towards higher-yielding investments, cash flow-positive assets are in high demand, making them a smart long-term investment.
While intuition is valuable, data is king.
Successful investors rely on detailed market research, demographics, and property performance data to uncover hidden opportunities.
Look at the numbers and analytics to ensure you can make informed decisions and avoid costly mistakes.
Commercial properties should be viewed as blank canvases with potential for improvement.
Strategic renovations, reconfigurations, or value-adding enhancements can significantly boost value and returns.
One proven strategy is purchasing properties below their replacement value.
If you buy below replacement cost, new investment supply won't be able to compete with your price point.
This approach ensures long-term value retention and market resilience.
The reality is that the best commercial property deals are rarely found on public listings.
They are secured through industry relationships and insider knowledge.
Finding a truly lucrative deal is difficult unless you have the right contacts.
This is where a buyer's agency will make a difference.
Sellers approach us directly with off-market opportunities that never reach the wider market.
For individual investors looking to tap into off-market deals, target specific areas and build relationships with key agents.
Once agents know your brief, they'll start sending you exclusive deals before they hit the market.
I always advise clients to stretch their budget where possible.
If you can increase your purchasing power, you can target higher-value commercial properties that offer better yields, stronger tenants, and more upside.
Spending more typically leads to securing better deals.
Finding a lucrative commercial property deal requires foresight, data-driven decisions, and strong industry connections.
But with the right approach, commercial property investment offers financial security, stable returns, and the opportunity to capitalise on Australia's evolving real estate landscape.
Scott O'Neill is a prominent Australian property investor featured in AFR's Young Rich List three years in a row. He is an entrepreneur and Founder & CEO of Rethink Group a premium property investment group, host of the top commercial property podcast "Rethink Investing's Inside Commercial Property'', co-author of "Rethink Property Investing'' Australia's number one commercial property investing book.
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance professional.
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