Posted by Ronald * Starr(in No CA) on October 23, 2002 at 20:31:25:
I received this response from David via e-mail. As I see no problem with privacy, I post here for anybody else to answer if they desire.
---* THE E-MAIL -------*
Thanks so much for your advice. What you say about the low interest school loans really makes sense. I read so many different things that constantly tell you that you should get yourself out of debt that it sometimes gets confusing. You also mentioned commercial brokerage. I plan on taking my career in that direction. Do most people who are in commercial start out in residential? How would you recommend I go about getting into this side of real estate? If you have any more advice about commercial RE or if
there are any good articles on the website that you recommend I would love to hear about them. Thanks again for your time and assistance.
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You’ll hear a lot of advice between now and age 75. Much of it will not be good advice. Much will not take into account specific circumstances. Sorting through the nonsense, mistakes, and off-point advice is just part of the process of gaining some wisdom.
Getting out of debt is good, especially high-interest-rate debt, such as credit cards. However, I think your loans are low interest rate. Also, I think that credit grantors will not be dismayed to see college education loans on your record. As long as you pay as agreed, they should be ok. Realize that any loan you pay off is almost like investing at that interest rate. If you can find other investments with higher returns for that money, it is good to take those alternative investments rather than pay down the lower interest rate loans.
I’d suggest that you get a list together of the commercial real estate brokerages in your area, or where you plan to settle in for a while. Start calling them up–maybe in Jan and Feb, after the holidays. See if you can get a job as a broker’s assistant. You will get steady pay, even if they don’t have any commissions coming in. You will learn a lot. Try to find a broker that you are compatible with and who seems to be successful. You might ask about the reputations of the potential employer first before you commit to that person. From title insurance people, other commercial salespeople, the commercial loan brokers, etc. The commercial brokerage arena is much smaller than the residential, so anybody who has been in it for a while will be well known by the other experienced people.
There are probably quite a few commercial brokers who started out as residential agents or brokers and then switched over. People tend to like one or the other, not both.
You might want to start monitoring the Commercial Board forum of CREONLINE.COM website. It may give you some education. Go back and read old posts.
I don’t read it myself anymore. Most of the questions are people who don’t know anything about real estate and they are trying to find some way to buy big apartment houses with no money down. Mostly that is a futile effort and most beginners should not even start of with apartment complexes, I think. But a few of the posts will probably be educational for you.
Good InvestingRon Starr***