What are the differences between traditional asset management and the unique approach taken by CMO property development. I'll discuss the importance of adding long-term value through active redevelopment and ongoing refurbishment of neglected buildings, urging you to consider the long-term implications of certain buy and hold investment strategies and highlight the importance of actively driving value creation.
KEY TAKEAWAYS
- Value Addition Over Asset Management: Add value through redevelopment and repositioning rather than just managing existing assets.
- Active vs. Passive Investment: This stresses the choice between actively managing the property post-redevelopment or passing it on to an agent for management.
- Resilience and Confidence: Develop resilience and confidence in their investment strategies despite industry norms.
- Control Over Market: It's vital to be in control of the value of the property rather than relying on market growth.
- CMO Strategy for Growth: CMO strategy allows investors with smaller pools of money to grow their asset base and leverage for future investments.
BEST MOMENTS
"Asset management is the normal approach to investment properties. But some of the stuff we're buying is not graded as an investment property, investment stock."
"I'm sick of reading and hearing about asset management, or worse still, the suggestion of speculatively investing in assets that maybe in an up and coming area."
"The real business is finding older buildings that don't suit modern requirements, reconfiguring them, repositioning them for modern demand. That's the adding value bit."
"CMO for me is a fantastic strategy and it allows investors with smaller pools of money to grow up their asset base and to use leverage to then buy the next one."
JOIN THE NETWORK
If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours.
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Commercial Property Investor Podcast