From Long Island, NY. Have over 500k saved up. Where to start!
Hi guys how's it going.

I'm from Long Island, about half an hour from NYC, and I want to start investing in real estate. I have money to spend, at least a half a million, and my family's business has 3 properties that are used for our own business and renting to other tenants. 

I'm looking to invest in buy and hold apartment units or office buildings - I'm not really sure what niche, and I don't know where to start! I've taken a few real estate investing classes so I do understand the basics of theory, but I really don't understand how I actually get started on things like researching markets, analyzing deals, deciding what niche to start with.

I'm fortunate that I have a decent amount of capital to spend, but I need some practice guidance on how to put all the textbook theory to practical use. How would I decide whether I should buy apartments in Brooklyn, or Stamford CT, or Hoboken etc. How would I decide whether I should try my hand in office buildings, apartment buildings, single apartments in the city. What markets are hot? How can I analyze deals?

I know this question is a bit ironic, but are there any practical books that serve as a guide. I've read commercial real estate textbooks which are great but offer so practical guidance on how to put the theory to use.

Thank you.
[{"id": "dh7zcru", "text": "&gt; How would I decide whether I should try my hand in office buildings, apartment buildings, single apartments in the city. What markets are hot? How can I analyze deals?\n\n/u/Frank2234,\n\nWhy don't you start by doing some ACTUAL research? Try reading some more books that explain how to evaluate markets/returns/financials. I always love these questions where you're essentially asking others to do the work for you.", "replies": [], "depth": 1}, {"id": "dh8595r", "text": "I'd recommend picking up a few books. There was a post a little ways back about best books for commercial real estate. I'd try searching for those. \n\nAside from that, the general advice is to find out what exactly it is you want to do in real estate. Make money is the obvious answer, but there are many ways to do it. Being the money partner, being the principal on a deal, property management, brokerage, etc, etc. \n\nWith cash on hand, trading funding for an inside look on a deal is never a bad idea. So you may want to start with a book on lending private money to finance a deal. \n\nHopefully this goes without saying, but.. Don't put all your hard earned $500k into one deal. I'm not sure what kind of financing is needed out in your area, but in my area, you don't need anything close to that much to dip your toe in the water. ", "replies": [], "depth": 1}, {"id": "dh9zt55", "text": "Read different broker research reports on US real estate as a whole (CBRE, JLL, Transwestern, Cushman &amp; Wakefield etc.) They may be called like US Real Estate Outlook 2017 or something like that. \n\nThen read up on their research for different asset types, mutlifamily, office, retail, industrial, medical etc. Which assets are doing great and why? Which are not doing great and why?\n\nBe cautious of buying in overbought markets (NYC is probably very overbought for many asset classes in many submarkets), beware of suburban office, beware of old (1970s, 1980s) industrial, beware of retail (malls, big box and poorly located). Also beware of hotels, very cyclical and expensive to maintain. Also, stay away from CMBS loans.", "replies": [{"id": "dhfqsel", "text": "&gt;  stay away from CMBS loans\n\nwhy?", "replies": [{"id": "dhfu4cf", "text": "I work for a CRE consulting firm that works with just CMBS loans. CMBS loans are EXTREMELY inflexible, the loan servicers are non-responsive (you are one borrower for one loan in a pool of 400 loans and their workload consists of monitoring several pools of 400 loans). Any requests (reserve disbursements, lease approvals, cash management issues) will take months to resolve and will likely require high fees. If you want to sell or assume a CMBS loan, the loan servicer will, without a doubt, increase the amount of reserve impounds per month, may require a capital expenditure upfront reserve, may request ADDITIONAL EQUITY so that the loan to value/ loan to purchase price is equal to what it was at ORIGINATION....I could go on. CMBS loans usually result in the most proceeds for the lowest interest rate, but don't for a second think that it doesn't come at a price if something goes astray. ", "replies": [], "depth": 3}, {"id": "dhhy2c6", "text": "I hope that answers your question, lol.", "replies": [{"id": "dhl1uzh", "text": "it was thorough, but I don't know how lenders act when a deal gets in trouble on a conventional loan. I think the biggest issue with CMBS right now is that rates are so tight that outside of need for max proceeds, the improved rate sell isn't quite as strong as it used to be. It's worse in a rising interest rate environment too, since that hits profitability once the securitization closes. ", "replies": [{"id": "dhl8t49", "text": "From everything I have heard, the complaints related to CMBS are always compared to a conventional loan (insurance company, bank etc.) and how a conventional \"balance sheet\" loan is so much better when it comes to resolving any kind of issues or requests.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dhaxy6v", "text": "Constantly read books and internet discussions.\nTeam up with an investor, let them put your money to work, and pick their brain while they do it.", "replies": [], "depth": 1}, {"id": "dhdgjth", "text": "Check out Poorvu's books. He covered more of the common sense side of things than the technical analysis. \n\nYou may wand to find a syndicated investment to get in with to sort of learn the ropes and get exposed to the documents, processes, returns, and players that are associated with a deal without the risk of bungling a deal and losing everything. These sort of deals will allow you to invest $50k or something along those lines into an office building, shopping center, etc., with some good (not great) return (if everything goes well) and lot less headache than doing it yourself. You'll be partnering with experienced people and its a good way to build your network. \n\nOr, if you are interested in partnering with someone outside of New York, give me a call. hah!", "replies": [], "depth": 1}, {"id": "dhpc0ut", "text": "Also invest in an online data resource if necessary. Like stocks, when you can filter and monitor thousands of deals, you can find some value.", "replies": [], "depth": 1}]