Advice on how to start investing in CRE with low capital

Portland, OR · Member since 2026 · 12 posts · 0 votes

Hey everyone,

I'm brand new to real estate investing and am looking to get started in commercial real estate. Was curious to know if you had any advice on how to get started with low capital? Is it even feasible?

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Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

2mo

I recommend getting a W2 job working for a real estate company that will give you exposure to the asset class that interests you, learn and build relationships while you build up your own financial profile. Getting into CRE real estate without experience or capital is not advised.

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
2mo
I'd recommend a house hack, you can target a 2-4 unit. Nothing wrong with starting simple and working up. Attend meet ups and start networking with investors in your area
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- Cameron Smith
  OP
  Portland, OR · Member since 2026 · 12 posts · 0 votes
  2mo
  Quote from @Caleb Brown:
  
  I'd recommend a house hack, you can target a 2-4 unit. Nothing wrong with starting simple and working up. Attend meet ups and start networking with investors in your area
  
  Thanks for this, I'm still not too familiar with the house hack route so I'll look into it further, and starting simple with a 2-4 unit definitely sounds more doable with where I'm at . You mentioned attending meetups and networking with investors; I'd love to hear how you'd recommend doing that as a beginner. Are local REIA meetups the best starting point, or have you found more connections through online communities, referrals, or just getting to know people one on one?
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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2mo
I recommend getting a W2 job working for a real estate company that will give you exposure to the asset class that interests you, learn and build relationships while you build up your own financial profile. Getting into CRE real estate without experience or capital is not advised.
[email protected]
3 Reply
- Cameron Smith
  OP
  Portland, OR · Member since 2026 · 12 posts · 0 votes
  2mo
  Quote from @Stuart Udis:
  
  I recommend getting a W2 job working for a real estate company that will give you exposure to the asset class that interests you, learn and build relationships while you build up your own financial profile. Getting into CRE real estate without experience or capital is not advised.
  Thanks Stuart, getting a W2 job in the space to build experience, relationships, and my financial profile all at once makes a lot of sense, especially without capital yet.
  
  One bit of context on my situation: I'm in my final year of a mechanical engineering degree, so I've got a path already lined up there. I'm curious how you'd weigh that. Is it realistic to keep an engineering job for now and still get started investing on the side, or do you think the exposure from working directly in real estate is worth prioritizing early on?
  
  Appreciate you taking the time either way.
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2mo
@Cameron Smith
No.
Just save up for a house hack and house hack.
Maybe it takes a couple years. House hack twice and presto - you own more rentals than 97% of people.
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- Cameron Smith
  OP
  Portland, OR · Member since 2026 · 12 posts · 0 votes
  2mo
  Quote from @Nicholas L.:
  
  @Cameron Smith
  No.
  Just save up for a house hack and house hack.
  Maybe it takes a couple years. House hack twice and presto - you own more rentals than 97% of people.
  
  Thank you for the honesty, this seems like a much more realistic route
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2mo
Low capital and commercial real estate does not exist in the form where you will be profitable: yes someone will spit out that you can get seller financing with 0 down etc but commercial can be very cash intensive and if something break and you cannot afford to fix it not only will you lose the property but also get sued by tenants for not meeting your obligations
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- Cameron Smith
  OP
  Portland, OR · Member since 2026 · 12 posts · 0 votes
  2mo
  Quote from @Chris Seveney:
  
  Low capital and commercial real estate does not exist in the form where you will be profitable: yes someone will spit out that you can get seller financing with 0 down etc but commercial can be very cash intensive and if something break and you cannot afford to fix it not only will you lose the property but also get sued by tenants for not meeting your obligations
  Thank you, this seems like a more 5-10 year down the line of investing type of commodity. Definitely will shift gears. Thank you for the advice!
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Anthony L Amos Jr
Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes
2mo
Find a syndicator to work for, learn the ropes, build relationships, save money, and invest. The right relationship can catapult you very far, despite where you are financially.

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- Cameron Smith
  OP
  Portland, OR · Member since 2026 · 12 posts · 0 votes
  2mo
  Quote from @Anthony L Amos Jr:
  
  Find a syndicator to work for, learn the ropes, build relationships, save money, and invest. The right relationship can catapult you very far, despite where you are financially.
  
  Appreciate the advice, I haven't heard of the syndicator route before. I'm finishing a mechanical engineering degree so I'm curious if working for a syndicator is only worth it as a full career move or is there a version I keep engineering (at least for now for the income) and still get involved on the side to build relationships? Thanks!
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Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
2mo
Partner with people and provide a complimentary skillset.
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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
2mo
@Cameron Smith, getting into commercial with low capital is tough but not impossible, syndications and partnerships tend to be the realistic entry point since they let you get exposure to a deal without needing to fund the whole thing yourself. From a tax side, that structure matters a lot, as a limited partner in a syndication, you generally can't materially participate, so any losses (and commercial deals often throw off large ones early on via depreciation) get treated as passive and can only offset other passive income, not your W-2 or other active income, worth knowing that going in so you're not expecting a tax benefit that isn't there for a passive LP position.

If you're looking at actually operating something small yourself (a small mixed-use or multi-tenant retail property, for instance) rather than investing passively, material participation becomes achievable and losses could offset other income, but that path needs more capital and hands-on time than a syndication does. Either way, cost segregation is worth understanding early since commercial properties tend to have more short-life components (specialized electrical, parking lots, signage) than residential, so the depreciation upside is often larger, just make sure you know upfront whether you're in a position (active vs. passive) to actually use those losses. Happy to connect!
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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2mo
@Cameron Smith You are already on the correct path towards earning good W2 income, one of the most underappreciated parts of real estate investing is being bankable. This has become a more prevalent issue. There's no rush to own real estate, especially at your age and where you are in life. Focus on your degree and career for now and get involved with networking groups, learn more about the real estate industry and start off by investing in an investment property you could live in. FHA financing is a powerful tool and can be a great launch pad when the leverage is paired with an understanding of real estate fundamental.

As you advance in your career and have liquidity you can invest, then you should explore more CRE deals. Also another benefit you have is the network your career will provide. You are going to be surrounded by other high earners. This will eventually lead to JV or capital partner connections, don't lose sight of that either. In the meantime, ignore all of the bad advice you will hear online about raising capital, buying real estate with creative financing or other strategies that would suggest you can or should be buying CRE now.
[email protected]
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Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
2mo
Hey Cameron,
I'd first be clear on the distinction: residential real estate (RE) is generally 1-4 unit properties and commercial real estate (CRE) is 5+ units, along with office, retail, industrial, self-storage, and other income-producing commercial properties.

If you're starting with limited capital, getting directly into CRE can be difficult because the equity requirements and financing standards are typically much higher than for residential properties. That's why many investors start with a 1-4 unit property, build equity and experience, and then transition into CRE later.

That said, there are other paths into CRE with less capital, such as partnerships, syndications, or working for a CRE firm to learn the business while building your network and capital base.

My suggestion would be to focus less on the label and more on getting your first good deal. Plenty of successful CRE investors started with a duplex, triplex, or fourplex before moving into larger assets.

Hope that helps. I specialize in both residential and commercial with a focus on mixed-use properties. Feel free to reach out if you have any questions - my DMs are always open!
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Bonnie Griffin KaakePro Member
Real Estate Consultant · Denver, CO · Member since 2021 · 661 posts · 389 votes
2mo
@Cameron Smith The best advice I saw on here was from @Stuart Udis. Get that engineering degree first. Learn about RE in whatever time you have but you may want to wait to do much investing until you have more capital. In the meantime, finish that degree and maybe invest passively at ConnectInvest.com. You can expect about 8 to 9% interest with Connect Invest's notes based on real estate. When you are ready to purchase real estate, I can help you understand what tax benefits are available and how to look at properties from that perspective.
[email protected]303-475-4459
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