Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
9y
Knowledge is power but without action it is only potential. So learn as much as you can but you have to start sometime. If you hide behind the fact that you don't yet know everything to never start, you definitely won't succeed.
Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
9y
No one knows everything there is to know about anything. The question is, at what point do you have enough knowledge not to be a danger to yourself and others? Since you do not know what you do not know, the answer to that question is very difficult to know. I see two options. 1. You start with small properties and work your way up as you gain more experience. In this case, hopefully your mistakes will be small and recoverable. 2. You find a mentor to apprentice under. This doesn't have to be a paid mentor, in fact I recommend that you provide some service to the mentor in payment for their time and experience. The exposure to real world events as they happen, will be immeasurable as far as gaining experience and credibility. Both of which, are the most valuable assets to have.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Oskar Plasencia Do you mean relative to standard residential? It doesn't take that much to jump from 4-units to 5-units. You'll have a learning curve when it comes to expectations on the loan, how the property is values, insurance rates, etc. but the management fundamentals don't change. It's completely different if you start talking about retail, office, medical space. Triple-net leases aside, thinking through car-counts anchor tenants, etc. is more than a little different. Not sure if this helps as your question was pretty vague.
Real Estate Professional · Phoenix, AZ · Member since 2014 · 26 posts · 30 votes
9y
Hi Oskar:
Yes, you should have an understanding of the commercial real estate investment space. You should understand the transaction side and the operational side. In commercial real estate, you are buying a business that has income, bills to pay, tenants to manage, maintenance repairs/construction to manage, space to lease, debt service to pay and accounting to manage.
Just like any business you buy, you need an understanding of the business. If you don't have that understand, go get it or partner with someone who does.
Commercial real estate is a business, the more net income you produce , the more value you create. Most real estate investors/syndicators run their properties like an investment, which usually leads to trouble. The better you run your property like a business, the more success you'll have.