3 Tips for Getting Started in Commercial Real Estate Investing

Getting started in commercial real estate investing can be intimidating. The purchase prices are large, the properties themselves are large, the number of different types of commercial real estate is significant and the profits (or losses) can be huge too. For many, it's best to apply the principle of Kaizen, a Japanese technique for achieving great and lasting success through small, steady steps. It has been around for years and phenomenally successful worldwide. It’s based on the concept of “how you eat an elephant” – and the answer is “one bite at a time”.

To build a fortune in commercial real estate, you must be in the game for many years, adding to your portfolio one property at a time, and taking territory inch-by-inch. And although the best day to plant a tree was 20 years ago, the next best day is today.

Here are 3 keys to getting started in commercial real estate investing.

#1 – Choose mastery. Focus on one property-type at a time.

There’s power and riches in focusing. If you like apartments, then buy apartments. If your passion is in another type of property, then do that. Choose mastery. Studies tell us that we can only “master” one subject at a time. Two, if you’re exceptional. Choose to be an expert in apartment investing only rather than just an average investor of apartments and another property-type. Maybe choose to be the best in small retail strip centers. Or perhaps be supremely knowledgeable in mobile home parks. Whatever you do, choose mastery.

#2 – Once you find your passion for a property-type, study it like a mad-man!

Get your hands on books (or ebooks), go to seminars (or webinars), and hang out with people who are already doing what you want to do. But by far, the biggest bang for your buck is going to be hiring or interviewing experts in your field. This will fast-track your knowledge level. But here’s the key: when you are talking to these experts, look for their patterns of success and their best practices. And then, do what they do!

The secret to getting started with your commercial real estate investing career is duplication by replication! Duplicate the experts’ habits of success and best practices and replicate it exactly – that’s the key! Most of the how-to is there – you now must do the work.

#3 – Start off with a small property and that’s close by.

My first commercial apartment building was a quaint 7 unit building that was close by. It was very affordable and I got great seller-financing. A big plus was that it came with an established property management company at the helm. My first small residential apartments were duplexes and four-plexes that were a few minutes from my house. When you’re first starting out as an investor, there are lots to learn and there are lots of mistakes to be made. Small property mistakes usually equals small pains. That’s why it’s smart to start off with a small property.