I just wanted to ask a very important question to me as a beginner in the world of real estate investing, well do I need to have prior experience in residential real estate investing before I venture into commercial real estate? Because I’m learning all I can about commercial real estate and I really want to get started. Would really appreciate input 
thank you for reading.
-Laci
is all about size of the market
There are usually more individuals in the market for houses than there are businesses in the market for commercial buildings. ommercial property can sit for extended periods of time waiting for the right tennant or the economy to improve… Plus houses are usually cheaper.
Thanks so much
Thanks you guys, I guess I should start with multi family because it is close to residential but with a much larger cashflow that’s what I’m looking for.
Do you have a bunch of money
Multifamily may have a large cash flow but you invest a bunch more and have much larger potential repair issues.
Plus think about this. If I buy a 10 unit multi and later decide that I can’t be a Landlord, or my significant other gets transferred to another state, or whatever, I need the money back, the only place to sell the multi to is another investor. A small market of buyers. and they do not pay retail, they will want to steal it.
If I buy 10 SFR’s and need money, I sell one or two. I can sell them to an investor or a home owner. A large market of buyers, who may want cheap but occupants will pay retail(you make money).
I owned 40+ SFR’s before I bought a small multi and some duplexes.
Don’t Worry. There is little bit difference in rules of purchasing & selling and nothing else so even if you taking commercial knowledge you will coverup all residential RE knowledge also with your first commercial dealing experience.
[QUOTE=Misslacirose89;887499]I just wanted to ask a very important question to me as a beginner in the world of real estate investing, well do I need to have prior experience in residential real estate investing before I venture into commercial real estate? Because I’m learning all I can about commercial real estate and I really want to get started. Would really appreciate input thank you for reading.
-Laci[/QUOTE]
While many investors start with residential, there is no reason that you have to follow a similar path.
Speak with commercial brokers and investors to see how they got started. If you want to focus on commercial, find a path that does not require prior experience. You might need to get a degree or specialized training. Unless you have access to larger sums of money it could be better to work for someone else. If you have the cash, I would suggest you hook up with other commercial investors as JV partners or something similar so you can leverage their experience combined with your capital.
I agree with John that you need to engage with experts in the commercial real estate to see what they think about what is going on in the marketplace. Depending what areas you want to invest in it might be an oversold or overbought market? You don’t want to be on the wrong side of that equation.
Financing
I’ve found financing to be a lot more flexible in CRE than single family. It’s important to get to know a few private lenders in your area that understand who you are and how you invest. It’s amazing what a few cups of coffee and a Christmas card can do to lower your rates.
Charlotte S.
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