How To Become A Commercial Real Estate Investor In Your Spare Time
While You Keep Your Full Time Job
Patience. As a commercial real estate investor you will likely require more patience when starting out than in the residential game.
The reality of dealing in commercial properties (whether it's a 12 unit apartment building or a 40,000 square foot warehouse) is that you will not be doing as many transactions or deals as you have been, or would do, in the residential investment arena.
Sidebar: For your reference, any apartment building over four units is considered commercial real estate.
The beauty of this is that you don't have to do as many deals. Instead of buying 50 houses, you can focus on buying one 50 unit apartment building. Think about that. Imagine the time, effort and cost to purchase 50 homes. Now compare that to buying one apartment building. As a commercial real estate investor you will find you are spending more of your time analyzing deals than actually doing deals. But when you find that diamond-in-the-rough, killer commercial deal, it could literally change your life.
In fact, that is exactly what happened to me when I was starting out as a commercial real estate investor 14 years ago. The first commercial property I purchased was around 50 units. (It was actually a 4 story mixed-use property with 45 residential apartments above 9 commercial units). And although I was a "full-time" commercial real estate investor at the time, I could have very well done this deal in my spare time while holding another job.
This one deal did change my life! The profits from that one deal alone were upwards of $2.5 million. Would that kind of money change your life?
Finding a "great" first deal is crucial. That will take patience, knowledge, focus and persistence. Buying an apartment building, although not overly complex, does require a great deal of knowledge. Actually what I should say is, buying an apartment building "properly" requires a certain amount of expertise. Buying an apartment building the "wrong" way is easy.
Be patient. Educate yourself thoroughly. Learn from other commercial investors. Talk to commercial realtors and get them to start sending you listings. Learn how to analyze those deals quickly. Be persistent. It may take you months if not years to find the "right" commercial deal. But the beauty of it is you can do it in your spare time and pounce when the opportunity comes.
Remember. The "right" deal could change your life. The "wrong" deal will change your life too. Just not for the better!
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