I would highly recommend Ray’s course. It’s a realistic approach to investing in the commercial side. Without any experience in the industry, little money, and only fair credit, you’d have a tough time getting a lender to even meet with you. You would definitely have to go the creative route. Aside from that, you need to understand your overall market, how to value a commercial property, government issues (zoning, codes, easements), and all kinds of other due diligence factors. It’s not always black and white and the best thing you could do is get a job in the CRE industry and learn while you get paid. When you feel comfortable and confident in your knowledge you can start buying.
Hello Mr. Ray, my name is Greg. I’m looking for some solid advice on Real Estate Investing. I’m looking to get into Commercial Real Estate, but I have no experience. I’ve been thinking about starting out in Residential, then moving onto Commercial. I’d prefer to just start in Commercial, but these days I’ve heard it’s tougher to get financing. Can you give me some strategies to get started in Commercial Real Estate with not much cash, so so credit, and about 2,500 a month income? Is it possible to get a hard money lender to finance a deal then get a property refinanced? Getting started in RE Investing by going into Commercial without going into Residential would be great, but I’m not sure it’s possible. Thank you so much!
Re: Hi Ray - Newbie Question - Posted by ray@lcorn
Posted by ray@lcorn on April 28, 2009 at 15:38:40:
Greg,
Thanks for the post. The answer to your question is, yes, it is possible to start in RE with commercial property.
But, and this is important, it takes a game plan. You have to get yourself up to speed in four major areas: market analysis, due diligence, valuation, and deal structuring. As Dan mentioned in the post below, and at risk of blatant self-promotion, my book covers those exact topics in great detail.
You might start with this one, “How to Get Started in Commercial Real Estate”. (direct link http://www.creonline.com/articles/art-268.html) The article expands further on the thoughts above.
After you’ve read 'til your eyes bleed ;-), come back here and ask the questions the articles will raise. The folks here will guide you to the right solution for your situation.