Advice for a wannabe CRE Broker
I am a residential real estate investor looking to jump into commercial brokerage. The idea is to eventually transition into commercial development. 

My question is what do you smart people think the best city for starting in CRE Brokerage at the current time? Also does anyone have advice on choosing a specialty (office/multifamily/retail etc.) Thanks in advance!!
[{"id": "csv7pmp", "text": "The only tidbit I can really offer is that its easier to start commercial and go into residential, rather than starting residential trying to get into commercial.\n\nAs far as specialty? Find one you like and are good at and go from there. Every type is going to have ups and downs, crashes and booms.", "replies": [{"id": "csyzm0i", "text": "Thanks, unfortunately no way to go back in time. I have been pretty successful with the resi side just want to scale up if that makes sense.", "replies": [], "depth": 2}], "depth": 1}, {"id": "csvahrz", "text": "Okay two important points here:\n\n1) The BEST city for you to start in, no question, is the city that you know and understand the most about. It could be the city you grew up in, or maybe it was the city you went to college in, or maybe it's just the city that interests you the most. No matter what the connection is, you'll realize Commercial Real Estate is highly segmented and localized. \n\nOnce you've started, however, is the time to become an EXPERT on that local market. By expert I mean EXPERT too not just knowledgeable. What are the new developments coming to town? what are existing rents? what areas do people work/live now? what areas will people work/live in 3 months, 3 years? 30 years? Why?How are the demographics of the area changing? Wheres the best schools? Where do people commute to and from? etc. etc.\n\n2) In terms of choosing a specialty, I would first decide what asset type interests you the most. The most successful brokers are the ones who focus on one (or no more than 2) specialties. Since you are starting out in brokerage I would focus on one of the Core 4 (industrial, multi, retail, office) and shy away from the others (self storage, hospitality, healthcare, entertainment, infrastructure, subdivision development, raw land, etc.)\n\nHope this helps!", "replies": [{"id": "csvep02", "text": "This is good advice. Also, realize in transitioning from residential, that the deal complexity and length are both much higher on the commercial side. You may be working on a deal for six months or more and you need to know a lot more about financing, taxes, zoning, construction costs, rental rates, etc. You have a lot to learn, so try to find a brokerage where you will get a lot of face time with a good mentor so you can learn from their experience and ask questions of when you need to (and you will!).", "replies": [{"id": "csyzh8d", "text": "Thanks I do understand this. Luckily I have been pretty successful with my residential flips so I have some cash saved up. I live in Kansas City so while I know the market here, part of me thinks it makes sense to move somewhere where more is happening?\n\nI have heard from basically everyone that finding a mentor can be the most important part, so I am spending a lot of my efforts on finding that person.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "csvgicm", "text": "As a residential real estate investor do you work on transactions or do you just own a few income producing properties? What kind of transaction experience do you have?\n\nWe could tell you where the hot markets are, but by the time you get there and establish yourself in the market (2-5 years) that market might not be so hot anymore. Also when markets do get hot, people moving in are usually calling into established brokerages and asking for brokers who are reputable. Your best bet is to be on a team with top brokers who are too busy and can put you on some deals so you get experience.\n\n\nHouston/ San Antonio seemed to have reached their peak, right now I keep hearing about the Denver office market.", "replies": [{"id": "csyzdqn", "text": "I have mainly doing flips, and own a few rentals. I am always the realtor and source all my own deals etc but I understand it's a totally different beast. Part of the reason commercial appeals to me is that its a more \"business like\" environment. \n\nThat's a great point about ever-changing markets, I guess I was curious if you could do it all over, whether you would go for NYC/CHI or something a little smaller like DEN? Thanks", "replies": [{"id": "csz3zi6", "text": "I would work in DEN hands down, but that's because I'm a Broncos fan haha. \n\nI have only ever worked in a secondary market and am currently working in a tertiary market. In the secondary market pretty much every call you make is met with a little bit of hostility. You are calling business owners that get cold calls from brokers all the time. In a tertiary market the owners are more open to talking with you because they don't receive as many solicitations. Cold calling is easier here, but there is less money on deals. Also, when I was working in the secondary market most of the prospects and clients were a bit more educated and were generally better at business. For example when you ask them for a P&amp;L they know what you are talking about and already have one on file. Where I am at now you have to spell out everything and basically hold the client's hand through the entire process. I liked working in the secondary market because it was very professional and things moved fast. Where I am at now its a bit more slow and laid back. I consider myself an industrial broker even though I am now working on all kinds of deals. I like where I am at because its one of the biggest if not the biggest industrial market in the US. If you like the idea of working in high rise office markets then you probably would want to work in a CBD. Markets that are in areas where everyone wants to live are going to be flooded with brokers. Some of the top performing brokers come from secondary markets where a single broker can take over a large percentage of the market. I would say don't worry about which market is hot or not and just go where you can see yourself living for the length of your career. CRE revolves around relationships so it's best to find a market and stay there. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]