200k liquid assets, 25m. CRE as next entrepreneurial endeavor, thoughts?
Hey - I'll try to keep it short. I have ~200k and CRE is very interesting to me. I would like to enter the business as an independent. I'm young and eager to learn. I'm not looking to become an agent nor am I looking to partner with any huge conglomerates (if possible). This seems like a great place to get situated and establish a smart foundation for growth over the next 10, 20, 30 years. My specialty is coming up with creative businesses and how to directly create experiences for consumers. 

1. Are there any books or recommended reading that I can get started with?

2. Portland is an interesting area, along with other secondary cities. 

3. I am interested in either a) acquiring property for rental, or b) acquiring property to run my own businesses. 

Thanks for your time. 


[{"id": "cvnrbwi", "text": "Being a real estate investor and small business owner are very different. Are you leaning one way or another?\n\nWhat type of returns are you looking for? Do you have other ways that you are thinking about investing?\n\nDo you want to put all $200K into one property? Even if you max lever it, that's a $1M property. Your risk/return profile will help you understand what cap rates/cash on cash/IRR's you want to buy at. \n\nIt's probably a good idea to find a broker that will help you buy deals.", "replies": [{"id": "cvntxqo", "text": "I'd like to pursue both outlets. I think it's possible to purchase a building as an investment piece but also start by operating a business in a portion of it. \n\nReturns - I'd hope for the mortgage to be paid by the few entrepreneurial projects I'd do within the space.\n\nDef not all 200. I'd say 60-80 is what I'd be comfortable starting with, maybe 80-120 if I can save for another 6-12 months. ", "replies": [{"id": "cvo2q8e", "text": "So you are looking to finance your purchase? Commercial loans typically range from 50% to 80% LTV. Your local bank could possibly fall somewhere in the middle of that. Definitely sit down with a local mortgage broker/banker. Your financing options may be limited because what you want might be considered a business loan so it could get complicated. Although, I'm just brainstorming, you could sign a lease with yourself and in the event you default on the loan the bank can come after you for rent (ie subordination). ", "replies": [{"id": "cvohjxm", "text": "Yeah, financing is probably the option that I'd consider with my current nest egg. If I were to increase then it'd be nice to flat out buy it. ", "replies": [], "depth": 4}, {"id": "cvohkq4", "text": "Commercial investment broker here. \n\nIf OP wants to purchase the real estate AND operate his business out of it he can apply for SBA financing and leverage up to 90% of the purchase price (as long as he occupies 50% or more of the building's GLA). ", "replies": [{"id": "cvqu6qq", "text": "An alternative would be to purchase a multi-unit office building and just use whatever space(s) happen to be vacant at a time for temp space for various start-up business ventures. That way the office space can be at a minimum of expense to you.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cvnrj85", "text": "In commercial you need minimum 6 months mortgage+expenses in the bank after purchase.  You have to be ready for your space to be vacant for long periods of time. \n\n$200k really isn't much.  Why are you not considering multifamily?", "replies": [{"id": "cvnrogy", "text": "I'm looking at commercial properties within the 150-250k range. Multi-fam is interesting but not as much as an industrial property. ", "replies": [{"id": "cvnrt5g", "text": "Higher cap rate = higher risk. ", "replies": [], "depth": 3}, {"id": "cvo4i02", "text": "the good thing with multi is you can lease it in weeks/months usually.  \n\n150-250k industrial properties are shit holes.  I don't care what market you are in, they are the bottom rung.  They sit vacant for years, and when you lease them you lease to guys who want storage space, or need a place to work on cars, or whatever random shit.  Then stay 6 months and then go.  \n\nDo you know who leases 150-250k industrial properties?  People that can't buy a 150-250k industrial property.  Any half ass business that is making money can buy one of those, or they will be able to very soon.  \n\nI'd stay clear of that market.  You can get high return I guess if you get lucky, but you can lose your ass too.  Either way you are looking at putting a lot of time into as people come and go and your property sits vacant.", "replies": [{"id": "cvohiy3", "text": "Thanks for your opinion. I see where you're coming from!", "replies": [], "depth": 4}, {"id": "cvohqwm", "text": "&gt; Do you know who leases 150-250k industrial properties? People that can't buy a 150-250k industrial property. Any half ass business that is making money can buy one of those, or they will be able to very soon.\n\nPerfectly put.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cvsz2t2", "text": "I'd talk to several brokers and use them to figure out what will fit your needs. ", "replies": [], "depth": 1}]