Getting into commercial real estate

[Amritpreet Singh]

SO the issue has always been about not having enough money. I recently had my uncle reach out to me because he heard I'm into real estate. And he want to invest and is willing to partner up with me he owns multiple businesses. At first I figured why not do section 8 houses but I don't think he would want to put in 20k in a SFH and only cash flow $500 which would be $250 each every month. So I figured commercial real estate would make more sense. I'm new but a quick learner. Easy to learn when it's fun to learn different ways about real estate. I've always heard of commercial and the different types of it but just don't know which one would be the best. And especially where to look for and find the best ones. I've looked into Crexi and loopnet but the numbers are horrible on most deals I've looked at. If somebody can guide me or point me to a direction so I can find something and take it to my uncle and start this journey. Thank!

[Ebonie Beaco]

Speaking from my experience working with real estate investors on the lending side, the very first thing you want to do is get clear on your investment strategy before jumping into property types. When someone brings capital to the table, especially a business owner like your uncle the conversation has to start with expectations, not the property.

Section 8 single-family homes will produce reliable cash flow, but you’re right: splitting $500/month isn’t usually enough to get a capital partner excited, especially when there are management responsibilities and long-term maintenance to consider. It’s steady, but the upside is limited.

Commercial can absolutely make sense, but "commercial" is a huge category. It includes everything from 5+ unit multifamily to retail, office, industrial, medical, mixed-use, NNN leases, and development. Each one has a different risk profile and a different path to ROI. There isn't a universal "best" — there's only what best aligns with your goals and your uncle's expectations.

Before looking at another listing on CREXI or LoopNet, I’d encourage you to sit down with him and get clear on a few things:
• What kind of annual return is he expecting?
• Is he focused on cash flow, appreciation, or both?
• Is he comfortable with value-add or only stabilized assets?
• How hands-on or hands-off does he want this partnership to be?
• How long does he want his capital tied up?

Once you answer those questions, your buy box becomes clearer — and at that point, finding deals becomes much easier.

From what I've seen financing investors across different markets, the easiest entry into commercial for a partnership is often smaller multifamily (5–12 units) or mixed-use buildings. They offer multiple income streams, stronger cash flow than single-family, and more opportunities to force appreciation through value-add. They also give you cleaner financing options and tend to match what most first-time partners want when it comes to ROI.

And just to set expectations: the best commercial deals rarely come from LoopNet. That’s where properties go when they don’t sell off-market. The stronger opportunities come from building relationships with local commercial brokers, lenders, property managers, and investors — the people who actually know when owners are getting ready to sell.

The key is building the right investment criteria first, not shopping properties without a plan. Once you define your buy box, you’ll know exactly what to look for and you’ll be in a much better position to bring your uncle a deal that actually meets his goals.