Best way to start in Commercial Real Estate

Developer · Manhattan, NY · Member since 2013 · 90 posts · 27 votes

Hey guys,

I have been posting quite a few things over the past day or two and have received some great information. I am new to real estate investing but my end goal is to be doing deals strictly in commercial. I am wondering what is the best way to approach this. I am getting some experience by doing wholesaling but I know residential and commercial are two different beasts. Would it be in my best interest to take some CCIM courses? Find a mentor in Commercial? When would be the appropriate time to make the switch? Any info would help thanks so much guys.

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Eion Snell
Contractor · Fort Lauderdale, FL · Member since 2013 · 6 posts · 0 votes
12y
Hey Chad,

Commercial is a different beast but that said there are many different types of commercial investments out there some have more risk involved. Its always good to get as much knowledge about the type of niche you want to get into.
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Roger Lin
Burke, VA · Member since 2013 · 163 posts · 63 votes
12y
Hi Chad,

Eion is correct to say that commercial is a completely different beast. I think CCIM will help you understand how investors, lenders evaluate a project. It should also give you some good contacts during the class.

I took a longer route by enrolling in a Masters degree program at the local state university. I have to say this has been the best decision I've made. the ROI is incredible.

Short of either one of these, you might want to consider getting a real estate license and going to work for a small commercial real estate firm that is willing to give you some hands-on training. Being a broker gets you as close to the deal and the parties involved without actually having to invest in the deals. It's a good way to learn in the front seat.
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
What do want to do in commercial? Own and lease, buy-sell, manage, there are many ways to be in "commercial" aspects.

Yes, the CCIM would be beneficial, yes working for someone in the businees would be helpful.

Commercial residential properties is related to residential. Motels or industrial or other properties are going to require more than a simple real estate background. For most other commercial you need a good business background to understand the risks associated with the types of business operations in a property.

Starting off, getting a license (other than having a CCIM) won't get you "in" commercial without additional training, most brokers won't let a new agent near a commercial deal without an veteran commercial agent holding their hand. :)
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Paul Timmins
Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
12y
@Chad Bernstein

Welcome. There are many types of commercial available you might consider self storage no toilets, lowest break even and sale point of all commercial. The majority are Mom and Pop owned and can come with seller financing.

Good luck,

Paul
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
I you become a commercial agent try to land with a specialized to larger commercial firm.

Regular residential firms that sell houses might occasionally come across inherited land being sold for commercial or a mom and pop type small gas station. Those kinds of things are a low return for a high amount of headache. The reason is the purchase price tends to be smaller and they are all highly unique and one off type deals.

When you get into the larger deals in price (millions) things are more systematized and the level of investors are repeat sellers and buyers instead of one off deals.

The small stuff can be okay in rural towns where things are a one stop shop and you mix in big and small. In more suburban to urban core things are highly specialized into groups.

Hope it helps.
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Sean Brennan
Rental Property Investor · Manchester, NH · Member since 2013 · 447 posts · 81 votes
12y
You might consider getting a job as an assistant working for an established commercial RE broker.
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Chad Bernstein
OP
Developer · Manhattan, NY · Member since 2013 · 90 posts · 27 votes
12y
@Eion Snell Hey Eion I defiantly agree its like comparing baseball and football, there is running, jumping, and hand eye coordination in both, but the rules are completely different you can be great at one and awful at the other. Thanks for your time Eion. @Roger Lin Hey Roger I am currently enrolled in a course to receive my real estate license, and I am looking into the CCIM courses since every person I spoke to has pretty much said its a good investment. I think I may try to find some work at a commercial broker to get my feet wet. Thank you for the advice Roger! @Bill Gulley Hey Sean yea thats the idea that im getting here, that seems to be the best approcah to get more invloved, thanks for the post sean I appricate it.
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Roger Lin
Burke, VA · Member since 2013 · 163 posts · 63 votes
12y
Sure! Glad you are thinking ahead. Good luck!
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