New Commercial Real Estate Investor

General Real Estate Investing
1

Hello,

I am a new real estate investor and I want to start out in commercial real estate. Initially I wanted to start out in residential real estate, but I have become more interested in commercial.

I am currently an accounting manager for commercial real estate and have about 10 years experience in affordable and residential property management. My family has also owned apartment buildings. My credit is excellent.

I’ve joined several groups for real estate investing and I’ve been burying my head in real estate books.

I want to start investing in commercial real estate because that’s where the larger returns are. And I also realize that in commercial it takes tons of work. But I’m up for it. I’ll learn what I need to learn and do what is needed to make a purchase. I have the stomach for this and know I can do it!

The problem is I don’t have a downpayment. Where do I start? Look at properties, prepare a cash flow analysis and then find an investor?

Should I try to find an investor in the city where I live?

Also, do you have an recommendations for commercial real estate books? Thanks.

2

Hey Jacks,

I’m new to the commercial investing as well. Tried some residential and now I’m interested in commercial. I too have been seeking all that I can learn on a daily basis. Maybe we can share notes?

3

Find the good deals and you won’t have a problem finding a partner. Keep in mind, most of the locally owned commercial brokerage firms in your market were probably formed by investors that acquired enough properties to put together a small staff to manage it all. These firms mostly manage the owner’s properties. They could be a good place to start.

Call commercial agents and appraisers in your area b/c they know people that are usually willing to partner on deals. Remember that you can’t trust anyone in real estate. You’ll get stabbed in the back on a regular basis if you aren’t cautious. Be very careful with partnerships. More fail than succeed. Usually because one of the partners is an unreasonable idiot that wants to screw everything up. I avoid them at all costs, while most newbs actively seek them out…