Aurora, CO · Member since 2016 · 6 posts · 2 votes
Hey BP!
My names Brandon I'm in Strasburg Colorado. I'm really interested in just owning commercial buildings. How ever I see that it can be a bit expensive to get into. So I was thinking that small multi family complexes may be a good place to start.(duplex, triplex) Am I crazy? Should I just shoot for what I want rather than start in a different section of real-estate?
Investor · Flint, TX · Member since 2014 · 14 posts · 2 votes
10y
I would definitely go with what you have the passion for! However, you should check out the market in your area to determine what is filling right now. For instance, I have a commercial building that I cannot fill, but in my area my multi-family properties are rented within a week or two after they are open. Find out what is in demand in your area!
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
10y
@Brandon Velikaneye welcome. I have a few thoughts. 1) To get into the commercial game means money. You either need to have it or be able to raise it. 2) It takes time to get a commercial deal to the closing table. You need staying power. 3) Only you can decide what works best for you. Starting with smaller deals can get you experience that can translate to commercial but commercial is a different animal. Pick a plan and make it work.
Great question and in my opinion it all depends on you. My passion is investing in apartment complexes and I decided to skip the duplexes, triplexes, and quads. It is definitely a steeper learning curve to get into commercial multifamily vs residential multifamily. It really depends on how badly you want it and how hard you are willing to work to get there. I know another apartment investor who took 2 years to get his first 26 unit property but he now has over 650+ units. I agree with the comments by @Bill S., commercial is definitely a different animal. However it is doable if you are willing to invest the time and energy to educate yourself and learn what it takes.
what is your end game in investing. Do you want to cash flow, retire from your current occupation, make investing full-time or just supplement your current income. I would answer that question first and then start. I like multis because you can start part time, hire a management company and then scale up.
You definitely need to get educated before you venture off buying assets, and you are starting on the right medium