New to commercial real estate; looking for advice

Commercial Real Estate Investing
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New to commercial real estate; looking for advice

Zak Boca
Member since 2018 · 3 posts · 1 vote

I've been in the tech space, sold a somewhat sizable company last year, and I'm looking to learn more about commercial real estate. I have the time, and dollars to invest, but I'm starting with little knowledge of the space. I'd love any suggestions on things that helped you in the start in the space- resources, books, podcasts, anything like that. Thanks

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Tamiel Kenney
Investor · Dallas, TX · Member since 2016 · 168 posts · 195 votes
7y

@Zak Boca Hi Zak! You definitely need to start with what niche you want to focus on. THEN...see if there are any MeetUps in your local area on that niche. That is a great way to learn the lingo of the industry, learn some basic info and network with potential partners and or passive investors if you choose to syndicate your deals in the future.

Conferences are also a great place to learn and network.

With Podcasts being the new form of marketing - You pretty much have a ton of Podcasts with almost ANY Real Estate Niche you can think of. Find one or two you like...and get in a routine of listening. The more you listen, the more you engage in conversations in this industry (networking)...the more comfortable you will be moving forward on something with the opportunity presents itself.

**When you go to networking events/conferences, go with a purpose: To learn - yes, of course; but also to meet a couple of people you might be future partners with or whom might be future investors for you if you choose to syndicate your own deals. People want to do business with those they know, like and trust.

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  • Dennis Maynard
    Real Estate Broker · Los Angeles, CA · Member since 2018 · 300 posts · 146 votes
    7y

    First, ask yourself what you know.  Then ask what types of commercial real estate are you interested in?  Apartments, retail, office, industrial, hotel, or self storage.  Those are the primary food groups.  Then they might break down more, Industrial for example - R&D, Data Centers, Distribution Centers, Manufacturing (all types), Cold Storage, Storage, Hazmat Storage, etc.  You get the point.  

    If you want to connect and discuss further, I'm happy to chat. 

    1Reply
  • Michael Glaspie
    Real Estate Consultant · Fayetteville, NC · Member since 2017 · 151 posts · 144 votes
    7y

    Read some of Brian Hennessey's books to cover many sections of Commercial assets.

    Podcasts:

    Best Ever Real Estate Investing Advice: @Joe Fairless

    Lifetime CashFlow: Rod Khlief

    Apartment Building Investing: Michael Blank

    Real Estate Investing for CashFlow: Kevin Bupp

    Start attending local commercial associations for brokers and property managers. 

    There is a ton of ways to get free information. Just as Dennis mentioned above you have to decide what path you want to take first. Best of luck

    2Reply
  • Tamiel Kenney
    Investor · Dallas, TX · Member since 2016 · 168 posts · 195 votes
    7y

    @Zak Boca Hi Zak! You definitely need to start with what niche you want to focus on. THEN...see if there are any MeetUps in your local area on that niche. That is a great way to learn the lingo of the industry, learn some basic info and network with potential partners and or passive investors if you choose to syndicate your deals in the future.

    Conferences are also a great place to learn and network.

    With Podcasts being the new form of marketing - You pretty much have a ton of Podcasts with almost ANY Real Estate Niche you can think of. Find one or two you like...and get in a routine of listening. The more you listen, the more you engage in conversations in this industry (networking)...the more comfortable you will be moving forward on something with the opportunity presents itself.

    **When you go to networking events/conferences, go with a purpose: To learn - yes, of course; but also to meet a couple of people you might be future partners with or whom might be future investors for you if you choose to syndicate your own deals. People want to do business with those they know, like and trust.

    2Reply
  • Ellie Perlman
    Multifamily investor · Boston, MA · Member since 2017 · 281 posts · 521 votes
    7y

    @Zak Boca - read books, go to conferences and/or find a good mentor you like and trust. They can all give you knowledge and help you find your way. There are SO MANY ways to invest in real estate. By talking with people you can find the best way that actually works for you. 

    0Reply
  • Douglas Dowell
    Denver, CO · Member since 2012 · 350 posts · 175 votes
    7y

    1.  The Complete Guide to Buying and Selling Apartment Buildings, Second Edition While focused on Apartments Steve lays out the justification for forced appreciation in any commercial real estate class.

    2.  What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures, Updated Edition

    3.  Foundations of Real Estate Financial Modelling

    4.  Intent to Prosper: DUE DILIGENCE AND COMMERCIAL REAL ESTATE

    5.  Best Ever Apartment Syndication Book

    6.  It's a Whole New Business!: The how-to book of syndicated investment real estate

    The Kevin Bupp Podcast, CRE Show with Michael Bull, Joe Fairless daily podcast, CREPN Podcast...

    2Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    @Zak Boca

    I'll reiterate what @Tamiel Kenney

    1) Do a research of many different RE investing options out there to figure out what resonates best with your skill set/time commitment/availability

    2) Narrow your choice to ONE niche only. If need help concentrating, then read "One Thing" by Gary Keller

    3) Concentrate on this niche and learn about it as much as possible through books, podcasts, networking

    4) Take action

    1Reply
  • Steeve Breton
    Investor · Natick, MA · Member since 2013 · 108 posts · 69 votes
    7y

    @Zak Boca I too grew up in Tech and have now invested in over a dozen syndications as a limited (passive) partner in the past 10 years.  I've invested mostly in multifamily but have also invested in a mobile home park, light industrial, oil an field, and a Yacht Club / Bed & Breakfast deal.  Email or message me if you want to setup a conversation regarding various asset classes and vetting sponsors/deals.    

    As recommended above, you need to decide on the asset class and then get to know sponsors you can trust.  It takes time.

    In full disclosure, I now sponsor multifamily syndications but am always happy have conversations with fellow investors and to refer you to sponsors of other asset classes. #abundance.

    0Reply
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    7y

    I would talk to commercial brokers or finance advisors. How much work do you want to do each month? NNN or multi-tenant, office risk, MF, etc. age, renovation, location, talk to people who can advise you.

    0Reply
  • Theo Hicks
    Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
    7y

    Start attending the commercial meetup groups in your market. Travel a few hours if you have to.

    1Reply
  • Grant Rothenburger
    Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
    7y

    A few have said it, I'll add to it, gotta figure out your strategy/niche first. 

    Being in the tech space, maybe you want to find a way to blend the two, like others have with different products they've developed and brought to the market.

    Maybe you'd like to invest passively in real estate, there are a ton of platforms/services/sponsors for that.

    Then of course there are the more traditional active investing paths like self storage, multifamily, mobile home parks, office, warehouse, parking lots, raw land, the list goes on and on.

    I recommend researching the different strategies here on BP to figure out which is best for you.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    7y

    Hi Zak,

    I have lot's of CA clients.

    Different investments require different levels of purchase price for quality.

    One of my clients sold a tech company that is in CA a few years back. We bought a 5.5 million retail center in Texas and are now looking up to 7 million for the next one.

    Retail NNN STNL or MTNL you can get passive at for quality at about the 1.5 million purchase price or higher whereas multifamily you are looking at about 80 to 100 units and quality about 75k a door or more so about 6 to 7 million in price to be more hands off with management in place and layers of repair people.

    Syndication you can diversify but you lose control and are sharing returns with the sponsor. There are pluses and minuses to each avenue. I am a sponsor and syndicator for commercial retail properties and then I have clients also that want full ownership and I am the commercial broker helping them find the property to buy.

    Without talking to you on the phone and knowing your goals and how much money you have to invest it would be difficult to expand further. You will get many opinions on here based on that persons specialty and area of interest.

    Good Luck  

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    1Reply
  • Charles Kao
    Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
    7y

    @Zak Boca

    Partner with someone in Commercial

    real estate in a way you both can leverage your own strengths if you wanted fastest and easiest route in..

    0Reply
  • Scott Meyers
    Investor · Fishers, IN · Member since 2012 · 520 posts · 499 votes
    7y

    Hey Zak!

    All the above is sound advice.  But there's always room for one more, right?

    My take would be first determine if you want to be the guy that goes & finds deals and brings them to financing (active investing) or the one with the money that folks come to (passive investor).

    Think of the former as having to hustle,  generate leads, network, & so forth as you learn the business and find opportunities with which to invest - otherwise known as "pounding the pavement".  With this one, yes you are going to want to specialize in a niche as @Dennis Maynard said: Apartments, retail, office, industrial, hotel, or self storage.

    (If it's Self Storage - PM me or check out some of my other posts on Bigger Pockets for some more insight.)

    Think of the latter (passive investing) as being a private lender, Equity Investor, accredited investor or something of the sorts that gives you opportunity into a multitude of investment opportunities.  You'll still have to network & generate leads & so forth but you won't have to specialize as much but instead truly understand deal evaluation and how deals are structured with financing & partners.

    So you'll need to ponder on that first as to HOW you want to invest.  

    But if I were you, before I make any of those decisions (active or passive investing ) or what industry & niche, I'd expose myself to a lot of different viewpoints.  Not necessarily asking others what they think you should do, but instead starting to immerse yourself in the business through what @Tamiel Kenney said: podcasts, conferences, networking, and what was said about reading books, and especially @Ellie Perlman's advice: "There are SO MANY ways to invest in real estate. By talking with people you can find the best way that actually works for you." 

    In summary, you have a lot of options.  There are pros & cons to each of them.  You have a "sizable" capital fund with which to use to leverage your future in commercial investing (and I would assume give you some time) to properly survey the lay of the land and find out which interests you & why and which plays to your strengths & weaknesses.  And you do that by exposure to the business by getting in & getting dirty.

    So get out there and start exploring, get with us if you have any specific questions, and find out which of these you were made for because all of your knowledge, experience, network, passion is going to be a most excellent fit somewhere.  You, and only you, can find that match.

    I hope that helps.

    Good luck!

    Scott

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  • George Blower
    Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
    7y

    Welcome  to BP.

    0Reply
  • Jessica Zolotorofe
    Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
    7y

    Definitely speak with a good real estate attorney and a good broker to gather some knowledge of the business. Best of luck!

    0Reply
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