I was wondering how one gets started doing deals in commercial real estate. Do you just start looking or is there a more refined process? I understand that one must be educated on the subject first, but after all the learning is done, what's next?
It works pretty much the same as looking for residential properties, you can go on http://www.loopnet.com/ and start looking around on there and you can call the agent/broker that has a listing and start working with them on that specific listing you found or just introduce your self and let them know what kind deals you are looking for and ask them to keep you in mind if anything like that comes up.
@Emanuele Pani Thanks for the quick response! Will do!
You don't have to be very educated in the process...it's basically the same as residential. Locate your deal and buy it. It can be very lucrative.
You can start small. I found a house in 2001 that I thought would be commercial one day because it was on a busy street... the access road under an overpass. I leased it out until last year when I changed the zoning to commercial. I paid $55K for the house and leased it for $950/month while it was residential. After spending around $20K to change the zoning and upgrade the house, the property now has an excellent commercial tenant that signed a ten year $350K lease.
I bought a commercial property in 1991 for $350,000. Today I was offered 50-year ground-lease at $20,000,000 just for the land that my building is on.
Best of luck in your search!
@Curtis W. Sutherland Thanks! Great story!
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