Transitioning from Residential to Commercial Real Estate
I've been working as a realtor for 3 years now. All of my deals have been residential so far. I'm looking to transition from residential to commercial within couple months. Are there any tips on the things I should be studying/researching, such as KPI, calculations, and etc. Do you know any websites where i can spend hours studying up commercial real estate?
[{"id": "ithzua2", "text": "Don\u2019t mean to be an asshole but just don\u2019t do it. You will fail.", "replies": [{"id": "iti4rbk", "text": "Thank you for the support!", "replies": [{"id": "iti92fu", "text": "You might be able to enter on the leasing side. But as far as property sales or investments, don\u2019t think about it.", "replies": [{"id": "itics7d", "text": "Whether it takes a year or 3 years, hopefully i can remember to let you know when I close my first deal", "replies": [{"id": "itipkts", "text": "Can\u2019t wait to hear about a $1.2M sale in a tertiary market", "replies": [], "depth": 5}, {"id": "ititz8o", "text": "You got to keep in mind that most dudes that start out in CRE have daddy hand them a business or daddies buddy is in it. F this guy. He is a loser. Keep your mind to it and you will do just fine. You are building a business. All businesses take years to grow.", "replies": [{"id": "itjs3uf", "text": "Lol these types of comments dont bother me one bit. I find it cute that he would take time out of his day to write such a negative comment \ud83e\udd23", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ititnwf", "text": "Did you come into the industry being a complete pro or did daddy already have a business for you? Everyone needs to start somewhere and I rather they have a spec of RE experience than coming from nothing. Saying \"You will fail\" is a loser mindset. If this guy puts his mind to it and works hard he can do it.", "replies": [{"id": "itiymle", "text": "Came in outta college with a finance degree.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iti0b2n", "text": "This is a big leap. Not to say that residential isn\u2019t difficult but it\u2019s like going from driving for Uber to driving nascar, both are in a car but doing very different things.  Again it is not that one is harder than the other but it\u2019s just a completely different animal.  My advice would be to find a specialty and really dive in.  Network with other brokers.  You are going to need to understand the different types of leases and ownership structures.  I haven\u2019t done it but heard good things about adventures in CRE.  Also I would try and join a larger shop that had a good training program and that doesn\u2019t just have you cold calling all day.", "replies": [{"id": "iti4vh7", "text": "Awesome, thank you for your response \ud83d\udc4d\ud83c\udffc", "replies": [{"id": "itidt5e", "text": "Agree with this. Figure out something you enjoy and get really good and knowledgeable about it. Do you want to lease or sell restaurants? Know the ins and outs of a kitchen, what it costs to construct, furniture budgets, everything. Want to do multifamily? Learn the shit out of the industry from all angles. While there are some basics that are applicable across the commercial spectrum the way to build a career starting out is to specialize in something, and then once you have some more experience under your belt you\u2019ll be better equipped to see the parallels between leasing/selling/developing a restaurant and leasing/selling/developing a medical office building. Etc.", "replies": [], "depth": 3}, {"id": "itkzder", "text": "100%, make sure you get on a team. Don't try and solo / parachute into the biz. You'll learn a lot and it'll serve you well down the road.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iti3baq", "text": "Switch to a commercial brokerage to learn and be prepared to not make money again for a 6-12 months. None of your connections are good anymore unless you have been selling house for/to business owners and/or CRE investors.", "replies": [{"id": "iti5e6f", "text": "Yep im fully aware that it\u2019ll be a rough start. I do have some high net worth clients that invests in CRE and a local GC that is wanting to flip multifamily so hopefully it can start there.", "replies": [{"id": "iti9xlh", "text": "Spend 6 months at Marcus and millichap. You will learn a lot.", "replies": [], "depth": 3}, {"id": "itjay5y", "text": "What market ? If you don\u2019t mind me asking ?", "replies": [{"id": "itjr35u", "text": "I\u2019m in Southern California", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "itlig9d", "text": "This. \n\nHonestly if you have a years worth of income saved go for it. As many people here have stated it is a brutal start and having peace of mind that you\u2019ll be fine with $0 income is key.", "replies": [], "depth": 2}, {"id": "itzrrpu", "text": "Agree. Try to join a brand name. It will help.", "replies": [], "depth": 2}], "depth": 1}, {"id": "itibluz", "text": "Adventures in CRE is a good site with lots of things to read (and buy). Your local Commercial MLS or Commercial Brokers Assoc may also have meetings or training for folks looking to convert. Also, there are a number of associations whose quality and activity vary from region to region. Be ready to eat bad eggs and rubber chicken because CRE is networking and making friends. \n\nFor those of you kvetching about resi-mercial and residential to CRE brokers, buckle in.   As the housing market becomes less overinflated, many of the residential brokers who have only worked in a bloated market will be looking for a new place to hide until the housing market stabilizes or upswings again. Nothing new to see here.\n\nOTOH - in many small town / rural markets there are brokers who do all the things. So without knowing where this poor soul is located, let's not beat them up just yet.", "replies": [{"id": "itid0rc", "text": "This poor soul is in SoCal. You can beat me up now \ud83e\udd23", "replies": [{"id": "itivwfv", "text": "Oh boy. Hope you brought your high pants because that market is flooded.", "replies": [], "depth": 3}, {"id": "itjc3ds", "text": "You just want to be a target, don't you? /s", "replies": [], "depth": 3}, {"id": "itjsa5w", "text": "What has already been said, you\u2019re in for a tough ride I\u2019m in SoCal as a developer and cre finance guy and there is a ton of competition that is already in place and seasoned. Consider joining NAIOP, ULI, and any regional cre groups that are active in your area especially the young leader groups in these organizations and network like crazy. Also highly consider partnering as a junior with a senior broker or a team that will mentor you, if possible. Also specialize, don\u2019t be a Jack of all trades and a specialist in none (just choose wisely).", "replies": [{"id": "itjw1ab", "text": "Is there away to specialize in short term rental assets for commercial space like motel, hotels and converting multifamily?", "replies": [{"id": "itjw953", "text": "There\u2019s a way to do anything but I personally feel that the market sector is oversaturated right now. I\u2019ve got some friends in that space and a ton of Airbnb spaces and players are folding and selling their properties. Best in class is doing just fine though.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "itid3lh", "text": "Nope but getting a job in the industry is how you learn how to apply those things. It\u2019s the only way to learn it.", "replies": [], "depth": 1}, {"id": "itidght", "text": "How flexible can you be with your commission?", "replies": [{"id": "itifako", "text": "I\u2019m not worried about commissions too much. I\u2019d much rather learn and build a strong foundation for myself", "replies": [{"id": "itj29kk", "text": "Start with giving flexible commissions for your sellers on property that might be a little more difficult to move. Seems fair since you\u2019re going to be learning on their assets.", "replies": [{"id": "itjr6pj", "text": "I can definitely do that", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "itil1j7", "text": "Im a noob but even I know a better way to phrase this. Dude you gotta be more specific. There's no one type of commercial, pick a type, specialize, do some basic research, then come to this sub with questions that google cant answer for you. I know you don't deserve the hate you're getting, it's just the nature of this sub, there's a lot of dicks on here as you may have seen, and I'm sorry. But if you don't want that kind of reception come better prepared next time. Best of luck", "replies": [], "depth": 1}, {"id": "itimk41", "text": "Ten years experience for a commercial real estate sales agent to know what they\u2019re doing", "replies": [], "depth": 1}, {"id": "itinopg", "text": "These comments are your first intro into the business \ud83d\ude02", "replies": [{"id": "itipzdb", "text": "They\u2019re much kinder than long lead time deals falling through", "replies": [{"id": "itiw4eu", "text": "Sound like new homes\u2026 whoof", "replies": [{"id": "iwn6j27", "text": "new homes? \n\nI've never heard about 24+ month contracts that close on MUP in residential.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "itipoh9", "text": "Welcome to the big leagues\u2026now pick up the phone and dial!", "replies": [], "depth": 1}, {"id": "itiqeo4", "text": "Look up \u201cBreak Into CRE\u201d on YouTube. There are many different sectors in CRE, and you will need to figure out what sector best suits you. That channel helped me to figure out my path and hope it helps you as well. Good luck!", "replies": [{"id": "itjrc79", "text": "Thats great, which path are you on right now if you dont mind me asking.", "replies": [{"id": "itjs86q", "text": "I\u2019m in brokerage/multifamily. Each sector has its own pros/cons. It\u2019s all up to you and your personality type.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "itiz3lf", "text": "Check \nStraight talk commercial real estate academy! $99 a month n you can finish there course in 3 days", "replies": [], "depth": 1}, {"id": "itj8t1w", "text": "I\u2019m a residential agent that got a start in commercial by focusing on investors, flippers, landlords, wholesalers. Some of those deals went from \u201cfind me a flip\u201d to \u201cfind me a multi family\u201d to \u201cfind me a restaurant.\u201d\n\nI would start with leases. People need leases and bringing commercial clients to lease property is solid money without much complexity. Once you have a solid history with that, some of those lease clients will buy or build down the road, or know someone who wants to. That\u2019s where you start a contact list and start to see more opportunities. \n\nFind a shopping mall with a vacancy, track down the owner and ask if they\u2019ll pay a commission to bring a tenant. Standard practice is 3% of the lease total for the period: i.e 5 years @ 12k / mo = $720,000 or $21k in commission. \n\nBest of luck.", "replies": [{"id": "itjqz87", "text": "This is awesome, thank you for your advice \ud83d\udc4d\ud83c\udffc", "replies": [], "depth": 2}], "depth": 1}, {"id": "itjbgpx", "text": "Environmental reports will be a thing for you now. You'll have lots of firms that will want your business. I've done work in the bay area and central valley. But... I'm in Indiana and travel is expensive right now. So I won't be your guy for doing the work but I can make recommendations on how to find someone reputable. If you have some basic questions I'm happy to talk.", "replies": [], "depth": 1}, {"id": "itjdqwg", "text": "[breakintocre.com](https://breakintocre.com)", "replies": [{"id": "itjr03g", "text": "Thank you!", "replies": [], "depth": 2}], "depth": 1}, {"id": "ivibv2m", "text": "Commercial is so much better, this is a good video you can check out\n\n  \nMost people don't know about commercial real estate, much better investment than anything else  \nhttps://www.youtube.com/watch?v=QA9CZQSVbrA&amp;ab\\_channel=TechRealEstate", "replies": [], "depth": 1}, {"id": "iwn7ya8", "text": "This is not an easy time to transition.\n\nOffice is fucked\n\nRetail is fucked\n\nIndustrial is becoming fucked for different reasons\n\nMF is luke warm but still on the stove\n\n&amp;#x200B;\n\nIf you want to transition to commercial, be ready to grind hard. Most tenant's of any reasonable size are represented and have been for quite some time, leasing is really tough to breach because of long term exclusivity.\n\nI think your hole is finding resi investors with longer term money and bring them off market deals.\n\nConversation would have been very different 3 years ago.", "replies": [], "depth": 1}, {"id": "iylb1lq", "text": "Dude get off this subreddit. Bunch of sore, pessimistic assholes on here. PM if you'd like, my team is transitioning now, albeit slowly, and it's definitely doable with the right strategy!", "replies": [], "depth": 1}]