In this episode of the Scottish Property Podcast, we are joined by Jerry Alexander, an experienced commercial property investor, to dive deep into the Commercial Multiple Occupancy (CMO) strategy. With over 20 years of experience, Jerry shares valuable insights on how this model works, the benefits of reducing risk with multiple tenants, and the potential for significant cash flow. Whether you’re new to commercial property or looking to scale, this episode is packed with practical advice and strategies.

Episode Highlights:

- Introduction to the CMO Strategy:

- CMO involves renting a single commercial property to multiple tenants who share common areas.

- The model reduces risk by spreading the income across multiple tenants, unlike FRI (Full Repair and Insurance) leases, where one tenant occupies the entire property.

- Benefits of CMO:

- The CMO model provides flexibility, allowing investors to adjust rental prices and quickly fill vacancies.

- It generates better cash flow and reduces vacancy risk, as losing one tenant doesn’t significantly impact overall income.

- Challenges of Managing CMO:

- CMO properties require active management, as investors need to handle day-to-day operations and tenant management.

- Scaling is essential to making CMO more manageable, as smaller properties can become time-consuming and operate like a full-time job.

- Tips for Getting Started with CMO:

- Jerry advises new investors to start with a building that houses their own business, making them both tenant and landlord.

- He suggests looking for properties that are partially tenanted to secure income while completing renovations.

- Financing and Scaling CMO:

- Investors should engage brokers early and explore private finance options for greater flexibility.

- Larger properties tend to generate more profit as they spread operational costs over more tenants, making them easier to manage and scale.

- Common Mistakes to Avoid:

- Jerry stresses that size matters—smaller projects can become a job, while larger ones offer better returns.

- He also warns against neglecting to reinvest in properties, as failing to upgrade can lead to lower rental returns over time.

- Future Projects and Long-Term Goals:

- Jerry shares his passion for historical and character buildings, which he’s focusing on for future projects.

- His goal is to build a property portfolio that runs independently, allowing him to step back from day-to-day operations.

Tune in to hear Jerry’s expert advice on mastering the CMO strategy and learn how to build a profitable, scalable commercial property portfolio!

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Follow Jerry Alexander on Instagram @jerryalexander.commercial for more insights, and check out his Commercial Property Investor Podcast for additional resources and episodes on commercial property investing.

In this episode of the Scottish Property Podcast, we sit down with Barry John Cole, a former professional footballer turned successful property investor. Barry John shares his remarkable journey from the football field to building a seven-figure buy-to-let property portfolio in Glasgow. He dives into the strategies he used to fund his investments, how he leveraged creative financing, and his advice for aspiring property investors. Whether you’re just starting out or looking to scale your investments, this episode offers valuable insights and practical tips.

Episode Highlights:

• Barry John’s Football Career:

  • Starting as a goalkeeper, Barry John recounts his time playing for teams like Celtic and Motherwell.
  • A back injury ended his football career, pushing him to transition into property.

• Transition to Property:

  • After leaving football, Barry John began working in tiling and bathroom renovations, eventually leading him to property flipping and buy-to-let investments.
  • He started small with flips but quickly realised the potential of building a rental portfolio for long-term financial stability.

• Creative Financing:

  • Barry John explains how he funded his property investments using various methods, including joint ventures, bridging loans, credit cards, and private investment.
  • He shares a detailed case study of buying a portfolio of 16 flats in Glasgow, negotiating the deal, and refinancing to pull out all of his initial investment.

• Property Investment Strategies:

  • Focus on prime locations: Barry John discusses why he prefers investing in Glasgow due to its strong rental demand and potential for capital growth.
  • Avoid small towns and villages: He advises against investing in areas with low demand and minimal capital appreciation, even if they offer high cash flow.
  • Building relationships: Barry John stresses the importance of building good relationships with surveyors to ensure accurate property valuations.

• Challenges and Successes:

  • Barry John candidly shares the challenges he faced, from managing properties to handling difficult tenants and dealing with market fluctuations.
  • He discusses how he built his portfolio without using his own capital by leveraging deals and raising private funds.

• Personal Insights:

  • Barry John talks about balancing his business with family life, raising four children while expanding his portfolio.
  • He also shares his thoughts on potentially moving to Dubai and managing his properties remotely.

• Social Media and Private Investment:

  • Barry John highlights the power of social media in attracting private investors, showcasing his projects, and building credibility in the property industry.

Tune in to hear Barry John’s inspiring journey, learn how he built a seven-figure portfolio, and gain valuable insights into property investment strategies that work. Whether you’re new to property or looking to expand, this episode is packed with actionable advice.