What the easiest way to get into commercial real estate investing?
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[{"id": "fq7zb4f", "text": "I'd find a good commercial broker that specializes in investments near you. That's how you'll get the good deals. My recommendation would be to buy industrial", "replies": [{"id": "fq8nd0b", "text": "And what happens when the tenant blows out? With $200K to invest and 70% leverage (which is thought to get in this environment) the most You could buy is like $900k worth of product, for general not obsolete tilt wall product that gets you like a 6,000 SF bldg tops. That way too much work for a small building and if the tenant leaves you\u2019re going to come out of pocket a decent amount of money in LL work just to get the space ready let alone provide a TI package. Stuff like industrial is a good buy but not at this scale.", "replies": [{"id": "fq8ocyl", "text": "To be fair, he didn't say single tenant", "replies": [{"id": "fq8or8g", "text": "I mean based on the scale of what he can invest in there aren\u2019t many opportunities that wouldn\u2019t be single tenant", "replies": [{"id": "fq8p902", "text": "I kinda assumed he was going to be playing with Class C anyway.  I feel like those tenants tend to be in the 3k-10k sf so a two-tenant deal wouldn't be absurd at his price range, especially if he's playing in a tertiary market.  Regardless, I feel like jumping into commercial with no real experience is going to be a hot mess, no matter what he invests in.  I would definitely start by coinvesting with someone more experienced first.  Also, no deal won by a first-time buyer with no experience is going to be a fiery hot deal haha", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "fq8pcjn", "text": "Like Poke.. said, I meant multitenant ind. I'm sitting on ind leads that are excellent buildings at 8 cap. There's much less competition for ind vs. residential. Industrial is way less maintenance also.", "replies": [{"id": "fqbbg1t", "text": "With what like 9 months of term left in 1941 constructions class c?", "replies": [{"id": "fqbdfqm", "text": "No, good buildings with mostly fresh 5 year leases\n\nedit: those higher quality ones are 7.5 cap", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fq7ziyj", "text": "with 200k and little to no experience I would invest that with a seasoned sponsor/owner that has a proven track record. You would essentially be a passive investor and considered a \"limited partner\". There are sites like crowd street or cadre where you can invest in multiple deals at say 50k slices with deals that have been prescreened.", "replies": [], "depth": 1}, {"id": "fq7zot6", "text": "Just put it into index funds, you'll get the same or better return when you minus the stress and risks of being a landlord.", "replies": [{"id": "fq88u5x", "text": "&gt; same or better or worse\n\nFTFY", "replies": [{"id": "fq898n8", "text": "Index funds on average beat real estate in the long term.", "replies": [{"id": "fq8fwu2", "text": "Source?", "replies": [], "depth": 4}, {"id": "fq8gpv6", "text": "Yeah gonna need a source for that one lol", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fq7zp64", "text": "Read the REITs quarterly reports and find one that isn\u2019t cutting its dividend.", "replies": [], "depth": 1}, {"id": "fq86hzu", "text": "Knowledge first, action later. Research the type of CRE you are interested in and the specific conditions of all your local submarkets. RE is all local, there could be a huge difference in the quality of an investment over even just a few miles or even a few blocks with CRE. For example, a retail building facing the hottest nightlife strip in town is going to be multiple times the investment as a similar building even two blocks off that strip. Once you feel confident in your understanding of the market you are interested in, then you strike.", "replies": [], "depth": 1}, {"id": "fq8bbvd", "text": "I would try to find a personal recommendation to a broker who can help you find some opportunities to consider.  Even better would be find a friend or trusted party who has some experience and see if you could tag along on a deal they are putting money into.  Think about what your risk tolerance is.  There is a huge risk/return difference between buying existing building with long term lease to well known company to speculative development new construction without any tenants.", "replies": [], "depth": 1}, {"id": "fq8bxu5", "text": "Depends on what your looking for.\n\nSmall industrial is the easiest to rent.", "replies": [], "depth": 1}, {"id": "fq8oglf", "text": "Learn what a cap rate is. Learn what is the average cap rate for the type of asset you want to buy. Search for something that fits your criters.\n\n\nAlso, a super simple book for beginners is Crushing IT\n\n\nhttps://www.amazon.com/Crushing-Apartments-Commercial-Real-Estate/dp/B06XYVFHM9/ref=sr_1_1?dchild=1&amp;keywords=crushing+it+in+apartments&amp;qid=1589171140&amp;sr=8-1", "replies": [], "depth": 1}, {"id": "fq9i2gu", "text": "Might be a good speculative investment if we really do move production back to USA. You'd better have some cash set aside for reserve because it could be a bumpy ride for the next few years. There is a learning curve to everything.", "replies": [], "depth": 1}, {"id": "fq9r4bv", "text": "CRE specific funds", "replies": [], "depth": 1}, {"id": "fqa1knz", "text": "If you are interested in multi-family apartments I would happy to help. I've invested ad a limited partner in quite a few deals as well as raised money for my own projects. We're targeting larger apartments in the Midwest. \n\nThat being said, regardless of my firm, there are a ton of great sponsors out there doing deals in a variety of strong asset classes (apartments, industrial, self storage). There are also plenty of below average sponsors.\n\nThe most important thing is to do your DD on the sponsors track record and investment strategy, often times it's more important than the deal itself. \n\nFeel free to DM me if longer term holds in Midwest multifamily fits your idea of what you're looking for.", "replies": [], "depth": 1}, {"id": "fqd534i", "text": "$200k doesn't really get you into commercial", "replies": [], "depth": 1}]