What is the best way to break into direct commercial real estate ownership?
I'm in my mid-20's about to graduate dental school in 14 months..
[{"id": "cot3v95", "text": "Quite dental school and learn everything you can about commercial RE and then dive in.  Is that what you were thinking ?\n", "replies": [{"id": "cot4ypn", "text": "thinking more warehouse vs retail vs industrial.  Also.. what type of CRE financing requires the least amount of capital?", "replies": [{"id": "cot5ybf", "text": "CMBS. Lenders will likely look for recourse. ", "replies": [{"id": "cot6z50", "text": "thanks!", "replies": [], "depth": 4}], "depth": 3}, {"id": "cowg7pu", "text": "A building with a good tenant rooster (strong financials of tenants) and solid income stream. This typically means more expensive as well. Industrial is much easier from a management standpoint - typically NNN leases and fewer tenants to manage. Expect debt on a cash flowing building to be 75-80% of value. The more you have to do to get the building stabilized costwise in order to produce cash flow, the more equity you will need (debt/bank views this as more taking on more risk).", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cotfas3", "text": "Get money. Buy building. ", "replies": [{"id": "cothrsd", "text": "This is the truth.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cothwzw", "text": "Are you going to have 300k in student loans from dental school? Because that will impact your ability to buy property.", "replies": [{"id": "cotqbbh", "text": "Yes I will along with 90% of dental graduates.  Most of whom go on to own or lease the building that houses their practice. . Does everyone here have rich parents?", "replies": [{"id": "cotqekx", "text": "Not at all, I've got some significant student loans myself. But it's important to know that you are usually going to have to put a good amount of money down to purchase commercial property. So, you may be better off building your practice and saving money before jumping into real estate investing. By all means learn a lot about it, so that when you are ready you can make informed decisions, but I'd imaging starting off practicing you are going to be busy as shit for at least the first couple years?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cotmslr", "text": "Borrow from your parents. ", "replies": [], "depth": 1}, {"id": "cotokrc", "text": "buy commercial real estate", "replies": [], "depth": 1}, {"id": "coumzgf", "text": "Doctors/dentists are in a great position to own CRE. I see a lot of deals where the doctors are looking to replace rent so they buy or build a stand-alone medical office building. Some decide to have extra space to take on an additional tenant (in a non-competing or complementary field). ", "replies": [], "depth": 1}, {"id": "cowfz7d", "text": "We had a dentist take a 8,000sf space and he is putting ~$750k into the building in improvements. He signed a 10-year deal but if you're putting that kind of money into a facility you don't own you would be smart to ask for a right of first refusal to purchase the building or an option to purchase the building at fair market value at some point in the future (building worth ~$3.25mm). If you have either of these options it becomes much easier to raise the capital/financing needed to make the purchase or perhaps as a bargaining chip to get in the way of a future transaction, with the owner, in order to get better terms on a new lease agreement in exchange for the option.\n  ", "replies": [], "depth": 1}, {"id": "cowg6ue", "text": "Banks generally love lending to users. If you are buying a building that you are operating your business out of, you are considered a user. There are some awesome small business loans out there right now with 0% down.\n\nOnce you break into the spectator realm, the banks get trickier. I typically see 10% down, 10-15 year term with a 5-6% rate if you're a credit worthy buyer. \n\nBe careful buying medical office, even as a user. I've seen some people get burned over the past couple years. Most foreclosures I have come across were offices used for doctors, dentists or some other medical professional. It seems to be a fickle business. ", "replies": [], "depth": 1}]