How to dip your toes into Commercial properties?

[Wei Jie Yang]

Hi Everyone, 

Very basic question, how do I get started in Commercial properties? I Currently own 8 piece of real estate. 7 long term rentals. 1 str that is currently in the furnishing stages. I am under contract for a 5-plex which is technically a commercial property. I will probably be doing 2 more STR's this year.

I would like to at  look at opportunities in the small tier commercial (under 1 million dollar) category to see what's out there. Is it just browsing thru loopnet? How do I talk to brokers when I honestly don't know what commercial category I want to invest in and am more in the stages of opportunity research?

Thanks all,

Wei

[Amir Khan]

So your 5-plex will help you with your ability to get into commercial real estate. Here are 2 key factors to prepare yourself for your entrance into commercial realm:

1. Searching and putting LOI on commercial deals through buyers brokers (or directly via listing broker)

2. Lining up your commercial lending.

I suggest, focus first on small commercial multifamily: 10 ~30 units. This will help you buy and manage larger deals.