Real Estate Investor · Memphis, TN · Member since 2016 · 405 posts · 131 votes
I have been wholesaling for a little over a year now, I made some progress in my first year, but I want to move my investing career toward CRE. While I move in to the commercial arena for equity I will still pursue wholesale, flip, and new construction opportunities in the markets I am in (Nashville, Birmingham, Memphis) thru partnerships and direct mail.
While I'm still a noob in the REI space, I want to know what are best practices to build rapport with a broker(s) to start walking properties and seeing deals before thy hit loop net or the MLS. My plans consist of:
1: purchasing a apartment 10-20 units.
2: partnering with an experienced investor on my first 1 or 2 deals until I gain the confidence to pursue deals solo.
3: becoming a CCIM in the next 5-10 years.
Real Estate Broker · Southeast · Member since 2014 · 175 posts · 63 votes
9y
@Jamie Parker you've set some tall goals and I wish you the best in achieving them. The first 5 years of my career were spent in commercial before moving over to residential. I think you'll find that the 2 are quite different; the commercial world is very cut throat..
As far as building rapport with brokers, it's the same as with anything else - be where they are, pass out lots of cards and shake lots of hands. Grabbing a commercial deal before it hits the market may be tough unless you're dealing with the property owner.
CCIM is quite a tag to carry but I'm not sure it's necessary for what you're trying to do... You need quite a bit of experience to even be accepted in to the program. Your timeline of 5-10 years could be met if you began the process tomorrow. And then there's the cost - plan to spend 15-20k on classes and travel (they only offer the classes at certain times and in certain cities).
Check out IREM's website for more details.
Good luck! You can do anything if you want it bad enough.
Real Estate Investor · Memphis, TN · Member since 2016 · 405 posts · 131 votes
9y
@Jarrod Cook I appreciate your honesty about the lofty aspirations of my goals. I look to start my commercial journey now. I am currently in a partnership in Birmingham to purchase SF properties. I plan to use funds from that partnership to build cash reserves to pursue a commercial equity to establish incomes of scale.
CCIM is something i thought would be cool to do, but the rest of the plan if is solid. I can understand that could be reaching if i need to adjust my time frame I'm cool with that, but I really want to be in the commercial space for the access more apartments and other residential based dwellings.
Why did you switch from commercial? Competition and cut throat nature? Or for residential ease of access to deals? Could you please elaborate on that point.
Real Estate Broker · Southeast · Member since 2014 · 175 posts · 63 votes
9y
@Jamie Parker I didn't switch from commercial, I do both now, just happen to do more single family and small multi. The commercial deals I was doing were office buildings and warehouses - I managed many apartment communities but never got into sales.
In my opinion there is not more money in one than the other because of the length of time it takes to work the deals. 1 commercial deal may net 100k but take 6-8 months to close where in that same time frame you could do enough smaller deals to net the same amount. It's 100% personal preference. Do what you love.
I have a 22 suite office bldg in the Southside of Birmingham for sale now if you're ready to get going. It is fully occupied and nets close to 9k a month. It's not listed publically but we can definitely do business if you're ready to make the jump into commercial.
Real Estate Investor · Memphis, TN · Member since 2016 · 405 posts · 131 votes
9y
Jarrod Cook i would like to take a look at the 22 unit complex. But I also would like to ask a question.
I am eager to get this ball rolling within the year. For someone in my position starting fresh, would this opportunity be best realized with respect to cash flow with a creative owner financing type of deal with 10% down or with a conventional 20-30% down being that I plan to you use property management in every deal?