What should your net worth be before you consider purchasing commercial real estate as an investment?
What the title says.

I know I'm nowhere near this currently, and mostly I'm interested in a number to shoot at for motivational purposes.
[{"id": "d4usbfv", "text": "I think it's more about knowledge and experience than net worth. At least those are better indicators of how successful your investment will be. You can by small commercial buildings for 100k-150k in most markets which would require about 30k of cash. So say 80k-100k net worth. \n\nIf you're talking about class A properties or bigger projects, I just don't know. Maybe net worth equal or greater than the total price of the property as a rule of thumb but I literally just thought that up. Good luck!", "replies": [], "depth": 1}, {"id": "d4uv3um", "text": "Honestly, you need to talk to a commercial mortgage broker and let them \"loan size\" you. You need a certain amount of liquidity above and beyond what you put down on a property (post-acquisition liquidity). \n\nThere are recourse loans (where they can go after you for the difference if the loan goes bad) and non-recourse loans (government-backed, Fannie Mae / Freddie Mac). It's harder to qualify for the latter. \n\nA commercial loan could be anything from a 5-plex or a single \"business\" house on up. Depending on your market, that could be 200K on up. You'll need to have 25% or more down, one month's operating reserves, and any funds for rehab. So, maybe 35% of the purchase price to buy it and at least that much liquid left over. 70K minimum, in this example. It helps if you have a partner with some experience or a co-signer to \"help out\" with more \"team\" liquidity. \n\nMy experience is in US (Texas) commercial residential only, though. YMMV. You might post on biggerpockets.com and see what others have to say. \n\nSource: Partner and occasional co-signer in some apartment investments. ", "replies": [], "depth": 1}, {"id": "d4v8mb2", "text": "It depends. Single tenant triple net properties have a much different risk profile than office towers which have a different risk profile than apartment buildings. I'm currently seeing net worth requirements of ~10-15% and liquidity requirements of ~5% of the loan size for larger Class A deals. Anything below $3-5m is going to be predicated on your personal credit score and net worth, while the larger deals focus more on the sponsor/investor, the deal itself, the likelihood of success, etc.", "replies": [], "depth": 1}, {"id": "d4viv7f", "text": "I've seen some firm's require you be an accredited investor, which I think is 1mil investible assets", "replies": [], "depth": 1}]