Net worth of around $1m, $250k of it in cash. Annual income around $150k. Is commercial real estate for me? If so, what kind? And which resources should I start with? Thanks!
[{"id": "fn3u5ko", "text": "where do you live? Different markets have different concepts.", "replies": [{"id": "fn3xmk3", "text": "LA county...", "replies": [{"id": "fn42hna", "text": "Based on what I hear, that is not a good place to get into it", "replies": [{"id": "fn44taj", "text": "sounds about right. I don't know anything about that area, but you might be better off with a multi-family. In smaller sized towns and areas you generally are able to get a smaller commercial building and build from there, but I have a feeling that LA county might have a pretty decent saturation already.  But again, I don't know what's appropriate by you. sorry.", "replies": [], "depth": 4}], "depth": 3}, {"id": "fn4medp", "text": "Just a suggestion, looking at a map of zoning regulations may indicate how much supply is available in terms of raw land area and what areas are prone to densification. \n\nI'm a planning grad student though so i'm simply thinking of it as a supply and demand issue.", "replies": [], "depth": 3}, {"id": "fn5wfz7", "text": "Not sure you can find much commercial real estate in LA with 250k downpayment. Let me know if you see different.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fn3unu4", "text": "You want active participation or passive income?\n\nPassive (since you have a career) may be easiest, which means a well-selected REIT may work to give you some exposure to commercial real estate in a diversified portfolio.", "replies": [{"id": "fn3xv20", "text": "Isn't the potential upside of a REIT much lower than owning a property?", "replies": [{"id": "fn3y64w", "text": "Like owning a broad market index fund, the upside and downside are within a narrower range; and like in that analogy, the investor's time involvement is zero.", "replies": [], "depth": 3}, {"id": "fn3ynbk", "text": "Perhaps, but all their debt just got bought out", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fn3vkxy", "text": "Why not try residential first and see how that goes.", "replies": [{"id": "fn3vvtg", "text": "I think that route just delays your goal and won\u2019t help you.  You sell 30 houses a year and then all of the sudden want to flip into selling single tenant NNN properties it\u2019s not the same thing and the skills won\u2019t translate.", "replies": [], "depth": 2}, {"id": "fn3xwf4", "text": "That seems like much more work? Am I wrong on that?", "replies": [{"id": "fn43i2i", "text": "It's lower risk for starting out. \n\nWhen I got my first places I thought it would be straight forward but literally everything that can go wrong has - delinquent rent payments, trashed units, major water damage, smoking &amp; drugs inside, lots of $10k cheques for roofs, renos, multiple evictions, etc.  \n\nCommercial isn't much different but the level of risk is just that much higher. \n\nJust advising that it is good to see what it feels like to hand your hard-earned asset over to someone else and pray they take care of it.", "replies": [{"id": "fn6tszd", "text": "I assume the property was cheap in a bad area?", "replies": [{"id": "fn72rzc", "text": "They're in B neighbourhoods but the nature of the location attracts both rich and poor.  It's a tourist destination so property is expensive to begin with.  \n\nDefinitely different than buying in the slums of Detroit but also not the best neighbourhood in town I'll give you that.\n\nWe've seen the same problems from wealthy tenants from colleagues who rent high end places so it doesn't seem to discriminate.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fn3wgfy", "text": "Depends on your goals and what you want to put in. At the end of the day you\u2019ll get 2x the returns you\u2019d get in s&amp;p 500 but there is much more work and risk so it depends if that trade off is what you want", "replies": [{"id": "fn3xxhl", "text": "Hmm...so 2x is honestly the best outcome?", "replies": [{"id": "fn44ncb", "text": "No he\u2019s just generalizing. The outcomes can vary widely and largely depend on the amount of risk you are willing to take and your ability to spot a good deal.", "replies": [], "depth": 3}, {"id": "fn4yrtt", "text": "Unless you like rolling the dice on huge value add projects, yes. You might do a little better than 2x on some projects if you make it through the hold period of 5-10years.\n\nCommercial real estate, to me, is a wealth building tool. Not get rich quick. You find undervalued properties, buy them at a discount, rehab, reprice to market, and wait for stabilization. Once the project proves its cash flow over 1-2 years after stabilization, you can try and sell depending on the market.\n\nHowever, for me it is buy and hold, once I build up my portfolio. Sell if you know/believe certain things will happen to your tenant in the future that may decrease the value, or if you want out. It is an asset rich, and generally, cash poor investment strategy.\n\nAnd if the market corrects you could be stuck with a dog of a property that you can\u2019t move for years.", "replies": [], "depth": 3}, {"id": "fn4zypx", "text": "If you\u2019re self managing or hustling with creative deals you can get to 3-4x until you scale. Exponential growth when you 2x your rate of return is nothing to sneeze at though, you can double an investment every 5 years", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fn3wyfq", "text": "Commercial real estate is an incredible investment with huge upside but a lot of risk. \n\nIt\u2019s much harder to analyze a commercial property vs a residential property and decide if you are buying right....furthermore, deal disparity is vast...The upside of buying a STNL Starbucks is completely different that buying a vacant industrial building.\n\nThere are many factors in each deal that must be  assessed (much more than residential) and you will have to put a minimum of 25% down on any deal you do.\n\nI would suggest taking the CCIM:101 financial analysis course, reading as much as you can and finding and building a relationship with a great broker...not all brokers are created equal. Having a great broker with a great track record and superior market knowledge is crucial and this person or persons will serve as your guide into commercial investing. \n\nAlso...decide what property type you want to invest in. Retail is a complete different world than industrial and industrial is a different world from hotels.", "replies": [{"id": "fn3y1z7", "text": "This is really useful, thanks so much.  \n\n\nIf you can put down 25% on a million dollar property, what's the surest bet with the least work? Retail?", "replies": [{"id": "fn3ybbr", "text": "Multifamily. Retail is an awful place to be and you can\u2019t buy shit for $1mm.", "replies": [{"id": "fn71vap", "text": "Let\u2019s be honest you can\u2019t really buy shit for 1 million in most places. Maybe a quad or duplex but then your not really in commercial real estate.", "replies": [{"id": "fn7ti7g", "text": "I don\u2019t disagree - I was just suggesting an alternative to retail where for $1mm this guy is going to get his face ripped off.", "replies": [{"id": "fn7yt8b", "text": "I think his best bet is a passive income generating business like a laundromat. You can get cap 10 on 250k in some places with relatively low headache.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "fn40lke", "text": "Seconding the other guys comment, multifamily all the way, retail is probably the least sure bet with the most work involved.", "replies": [], "depth": 3}, {"id": "fn48eck", "text": "No definitely not, retail takes a ton of work, very high tenant improvement costs and is risky in the current market....additionally you will not be able to get a loan on a retail property right now as it is getting destroyed by COVID.\n\nIndustrial is a great market right now but probably not a great play for someone new to the business. \n\nI\u2019d start with duplexes, houses 4 family\u2019s. You also need to take into account property management and find someone who can handle that aspect for you. \n\nAdditionally before you buy anything your need to run a complete proforma. A building could be listed for $1,000,000 but have an extra $500,000 easy in improvements, brokerage fees, retenanting costs, lawyer fees, loan fees, title, survey, inspection floor plans, taxes...the list goes on. At the end of the day if you don\u2019t buy right you won\u2019t have enough cashflow to pay your expenses and mortgage much less make a decent return. Or worse your building sits vacant and bleeds cash.", "replies": [{"id": "fn497b2", "text": "Note that five units and up is commercial and handled very differently. Are you intentionally recommending to start with four units and below because OP is a beginner? I would probably agree if so.", "replies": [{"id": "fn49l3n", "text": "Yes", "replies": [], "depth": 5}], "depth": 4}, {"id": "fn59cih", "text": "Couldn\u2019t agree more, absolutely do not jump directly into commercial.  Cut your chops on residential as there is a lot of overlap without the same level of risk (not riskless, just less risky).  Get a strong understanding of the financials and build your network (broker, lender, accountant, attorney, architect, contractor and other tradesmen).  Keep in mind that reliability is far more important than price.  I\u2019d rather pay a lot more for a guy that picks up the phone when I call, does what he says he\u2019ll do when he says he\u2019ll do it, and does it right.  Sounds simple but it\u2019s harder to find than you think", "replies": [], "depth": 4}, {"id": "fn6tecd", "text": "From my experience Retail doesn't have that many tenant improvement costs,just deliver them an empty space that has freshly painted walls and good condition [flooring. Office](https://flooring.Office) space being so competitive requires numerous improvements by the landlord if the tenant requests them.\n\nRetail tenants will pay for improvements to suit their business but usually request 2-3 free months so they are not paying rent until the business is open.\n\nMy experience has been with Retail spaces approximately 1000 square feet in downtown business districts.", "replies": [], "depth": 4}], "depth": 3}, {"id": "fn4y7wy", "text": "Honestly due your homework and bring in a team of experts: CPA, real estate attorney, and a seasoned broker. People lose millions buying the wrong asset or not understanding what they are buying.\n\nIf you don\u2019t do it right you can lose everything.", "replies": [], "depth": 3}, {"id": "fn57kom", "text": "Plus numbers are showing retail is on a decline. Think of same day shipping, delivery, etc... In case you were going the \u2018shopping centers\u2019  route.", "replies": [], "depth": 3}], "depth": 2}, {"id": "fn4dic0", "text": "Retail is my specialty. I can help educate on those deals if you\u2019re interested. Let me know.", "replies": [], "depth": 2}, {"id": "fn4wjmo", "text": "This is great guidance. Thank you!", "replies": [], "depth": 2}], "depth": 1}, {"id": "fn3x0zv", "text": "What does your current portfolio consist of? Are you looking to diversify you portfolio?", "replies": [{"id": "fn3xyqx", "text": "Pretty much just equities and a few bonds...age 39.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fn3xe2e", "text": "typically\n\nResidential = equity play\nCommercial = cash flow play\n\nDepending on your area 250k should get you into a multi plex residential without too much trouble.\n\nWord of caution - In some areas residential is targeted by populist legislation that makes being landlord a never ending nightmare,  probably want to avoid that especially as you\u2019re new to it.  Avoid California, Oregon, New York, Massachusetts.  Washington and Colorado are borderline.  If you can make it work in Pennsylvania, North Carolina and Tennessee those are interesting areas \n\nCommercial is a different game all together,  you should make sure you know the type of property you want to invest in,  something about the industry for your target tenants, etc...  you probably also need more cash.  If you are buying property for your business there are some options but if purely investment,  commercial lending will require much higher down payments and reserves \n\nSo with all that said,  I recommend commercial if you know what you\u2019re getting into,  but residential isn\u2019t a bad way to get started (excluding some notable locations)", "replies": [{"id": "fn58ff9", "text": "Hey there my father in-law and I have been evaluating the market in Northern, CO. Can you explain what you mean by populist legislation and its effects on being a landlord. Are you talking about the difficulty to evict people or something else?", "replies": [{"id": "fn598y9", "text": "That\u2019s a part of it\n\nRational people can debate the logic of a 10% per annum limit on rent increases,  shocks can be bad for any market,   But the nature of housing is and will always be a free market solution provides the best overall outcome\n\nWhen it starts being about housing is a human right ,  then the next target is who can be vilified for human rights violations...  suddenly anyone who invests in housing is now a target\n\nSo you get things like outlawing evictions, which both hurts landlords and other tenants \n\nYou also get things like state controlled screening,  so now not only can you not get out of a bad situation,  you can\u2019t even control getting into one\n\nBasically you\u2019re forced into business with the state where you take all the risk and there is no reward...\n\nIn the long run it hurts everyone,  but populism isn\u2019t rational so it\u2019s not a good plan to expect reason to win out\n\nWashington and Colorado seem okay now,  but Oregon was fine up until the last 4 years. Things can change quickly and they don\u2019t get better once they do", "replies": [{"id": "fn5goiw", "text": "I appreciate the response. Definitely giving me something to think about.", "replies": [], "depth": 4}, {"id": "fn6vjtz", "text": "Thats scary ,housing becoming a Human [right.Read](https://right.Read) about in CA there is a proposal that every landlord must accept the 1st qualified apartment application they receive.\n\nIf I have multiple applicants that are similar I will choose the one that looks like they  will have the best chance of remaining employed based on their profession. I avoid tenants with a confrontational attitude, they most likely be highly unreasonable if there is a problem.I always resolves issues quickly but try and avoid the demanding tenant(the ones that text you with ASAP in the text).", "replies": [{"id": "fn74amt", "text": "I have no problem with people voting to have the state provide housing.  I don\u2019t think it\u2019s a good idea,  it never works and is exactly how you get \u2018projects\u2019 and slums...  but if people want to vote with their hearts and not their heads,  fine...  \n\nMy issue is forcing private people into servitude for the state ... \n\nI\u2019ve already had my run-ins with POS tenants who make everyone\u2019s live miserable (myself and their neighbors included). The state has no business forcing me to sell my services to them", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fn3ylln", "text": "Hell no, buy a 500k residential building no commercial.", "replies": [], "depth": 1}, {"id": "fn43fs6", "text": "This question has been asked before and it\u2019s impossible to answer without more details. I recommend you start talking to commercial real estate professionals and researching the topic. There\u2019s many ways to make money in real estate.  After you do enough research and talk to enough people you\u2019ll start putting together your own business model.", "replies": [], "depth": 1}, {"id": "fn46eos", "text": "As for resources, I'd recommend reading \"What Every Real Estate Investor Needs to Know About Cash Flow\" by Frank Gallinelli. This book gave me the confidence to understand the numbers on commercial real estate. \n    Also \"Crushing it in Apartments and Commercial Real Estate\" by Brian Murray. Finally when you get to a deal, follow \"The Due Diligence Handbook for Commercial Real Estate\" by Hennessy.\n\nAlso bid low over the next several months. It will be a buyers mkt.\n\nGood luck!", "replies": [], "depth": 1}, {"id": "fn49nwh", "text": "Another passive approach is investing in a commercial syndication. They are done for multifamily, retail, and industrial, but multifamily is the way to begin. Getting to know the syndicator and becoming a sophisticated investor takes time and effort, but still way less than doing a deal yourself. You can invest in someone else\u2019s deal for as little as $50,000, and there are many operators in California if you are willing to attend networking events - obviously the in-person events aren\u2019t happening now but there are virtual meetings going on.", "replies": [{"id": "fn517ss", "text": "When I worked for *name brand hedge fund* we made so so so much crazy money off those people. There was is literally 0 alignment of interest between the firm managers and the investors as the managers don\u2019t put any money in and make all of their money on charging exorbitant fees. Total suckers game investing in the TIC funds. \n\nFlip side is that because the managers had no idea what they were doing we were structuring deals with a bunch of them where we made a lot of money off of them because of their unfortunate lack of knowledge about institutional capital. I felt really bad for the TIC investors but that\u2019s life, we were just floating super high yield secured control positions.", "replies": [{"id": "fn55x6a", "text": "I believe you, because I see those types of deals out there myself. However, if one really understands how to evaluate a deal, including the way it is structured, and how to make sure the syndicator and investor interests are aligned, it is possible to invest in a deal and make a solid return without paying crazy fees, and where the syndicator gets paid based on the performance of the deal. \n\nIt\u2019s quite a bit of work learning how to identify a good deal, and then more work building relationships with reputable syndicators.", "replies": [{"id": "fn56st6", "text": "Yea I\u2019ll give you that but I\u2019m my experience most of the \u201cbig\u201d TIC guys are scam artists who prey on people who don\u2019t know what their doing. Nor do the TIC guys. They\u2019d do awful deals, come to us for financing and we\u2019d make a killing on structures deals on them and they didn\u2019t really care because they had no skin in the game. I think the \u201cbest\u201d one I saw was a firm that charged 2% on UPB to sign bad boy carve outs. Wut - you got people to pay you hundreds of thousands of dollars to not defraud them??? Also loved it on some of the takeouts where they\u2019d overcapitalize a deal and then sweep the extra cash back to the principal. Had one deal where the manager swept $2.5MM in fees on a $48MM recap. \n\nI felt really bad for the underlying investors but on our end it was like shooting fish in a barrel. Must\u2019ve made in aggregate a 30% IRR and like 1.8x across a dozen $10mm checks and id be shocked if the TIC investors broke even. They would just get crammed down by new equity in recaps. The stuff is quasi criminal. My $0.02.", "replies": [], "depth": 4}], "depth": 3}, {"id": "fn5xdoq", "text": "Hedge fund is not the same as multifamily syndication. A syndication is just a legal formation so that many people can pool in money in a very large deal, typically 100 million+. There is usually a company running the deal and they make a contract on how profits are split. Usually its guaranteed return of 16% IRR, and the additional profit split 50 50. This is pretty much the only way to get in on a big multimillion dollar deal (aside from running it yourself).", "replies": [{"id": "fn68u4u", "text": "I know. That\u2019s why we made money - I worked for a hedge fund that structured money for syndicators. We took the syndicators to the cleaners because they don\u2019t know what they\u2019re doing and don\u2019t care about their investors. \n\nThere is a better way to get into a big multi family deal as an individual investor without access to private equity funds - call your stock broker and buy EQR. If you go direct with a syndicator 100% no money back guarantee you\u2019re gonna have a bad time.", "replies": [{"id": "fn6uhq7", "text": "Sounds biased. There are many reputable syndications out there, the key is vetting their record and history prior to engaging. One example is Joe Fairless. Know many people who have made huge 30+ IRR with his company consistently over multiple deals.\n\nSounds like your hedge fund was unethical and were bad at choosing good people, but not all operators are. A good operator just needs cash and can produce big returns as they have access to the best deals. Its that simple.\n\nMost hedge funds use their own syndications. And those syndications know they can rip the hedge fund off and offer low returns. But as i said with proper vetting and research its not hard to find good ethical syndications who consistently get funded by private money. And with 25% average IRR that is hard to beat.", "replies": [{"id": "fn7u47z", "text": "I worked for a highly ethical name brand firm. Sure Joe whatever might be a good stndicator but for everyone of him there are 93 others that suck and are in it to rip people off on fee load. \n\nAnd private equity / hedge funds syndicate sure but it\u2019s raising money from sophisticated institutional LPs not 83 year olds who don\u2019t understand the documents given to them. \n\nAlso to say that a syndicator has access to the best deals is just kind of silly, and it\u2019s rare that you\u2019ll ever see an investor get a 25+ in a TIC deal.  TICs are a rip-off factory for unsophisticated low dollar investors looking for some private market access but don\u2019t fundamentally understand the risks / returns and total lack of control through these clowns.", "replies": [{"id": "fn7y5ss", "text": "Right but your advice is to avoid syndications altogether. Assuming your \"1 in 93\" number is true and its easy to find that 1 syndication why is it a bad investment? There are thousands of bad stocks also but few argue stocks are a bad investment. \n\nIts rare to get 25 IRR? Not really. Heres some real [returns](https://ashcroftcapital.com/portfolio/#sold-properties). The caveat is you must be accredited investor to join as op probably is. I know a few others with similar returns that are highly regarded by other REIs.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fn4dd0y", "text": "Just start looking at deals and analyzing. Inform yourself on what deals are. PM me if you want to dive deeper.", "replies": [{"id": "fn6edc4", "text": "Can I PM you to learn more?", "replies": [{"id": "fn6nzog", "text": "For sure.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fn4h2w6", "text": "Agreed you should def just start looking at deals and getting a feel for the market.\n\nCall up local brokers -- not ncessarly just the big shops Marcus and Millichap Cushman but also smaller shops because those will sometimes find more dicreet, off the grid deals that are often times better / offer more upside.\n\n&amp;#x200B;\n\nI would say right now, your safest best residential rentals especaially because demand is going to go up a lot -- many condo owners are going to default on mortgages and will resort to renting.", "replies": [], "depth": 1}, {"id": "fn4m8pd", "text": "Also look at growth trends in the area, All I can say is if I were to invest, I'd buy shares or property in class A and AA in Toronto, Montreal or Vancouver given their growth rates and relatively low wages, making them oh so attractive for companies to lease or rent there. \n\nHope this helps.", "replies": [], "depth": 1}, {"id": "fn4t8qa", "text": "Hi there,\n\nI\u2019m an investor and broker and own a couple of small MF in the Bay Area. I\u2019m also a commercial RE asset manager of 10+ years. Indeed there are many key differences to owning and operating different property types and in different markets. I can say that I think you\u2019re in a great position with your timing because I suspect there may be attractive opportunities on the horizon. With that, I would educate yourself as much as possible in order to figure out where your risk tolerance is relative to how active or passive of an investment you may be after. Here are my thoughts:\n\nMulti family residential: time tested as recession resistant with lower vacancy factors and volatility as people will always need housing vs they don\u2019t necessarily need a place to operate a business. Because of that, cap rates are at all time lows because of the lower perceived risk vs other assets and because of more attractive financing terms vs other property types. The challenge with this sector is finding deals where the numbers actually make sense in terms of price (subjective of course). With financing for 5+ units, it\u2019s considered commercial, and commercial financing is based on the NOI. So you may end up needing to put 30-50%+ equity (down payment). From there, depending on the cost of your money you\u2019ll need to figure out if your cash on cash returns make sense for your investment objectives. Again, this all comes down to your knowledge and education.\n\nMulti-tenant Retail, office, and industrial are highly different in that much of its profitability is based on its operation and understanding how to negotiate and structure those leases. These are by no means passive investments by any stretch and they require a sophisticated knowledge of these items if you want to do well. The exception to this is single tenant net leased property in which it\u2019s likely fully passive. The value is fully dependent on the income, length of lease, and financial strength of the tenant. There is virtually zero upside and it\u2019s mostly a yield play. \n\nHope this helps and if you want to discuss more feel free to reach out.", "replies": [], "depth": 1}, {"id": "fn4ud6x", "text": "Possibly 4X. Commercial buildings may bring in that value. Assuming $3 nnn needing a 4000 sf building to get 144K income.\n\nLoopnet is where you search for listings.", "replies": [], "depth": 1}, {"id": "fn55c3f", "text": "I have a lot of clients in your similar situation. What i have seen work the best is 3 or 4 unit in class A area. You will get around 6-8% cash on cash + 6% mortgage paydown and appreciation which varies on city you are in but is typically +10% return based on 25 down. \nAvoid class C or even class B- rentals the last thing you want is a headache distracting from your successful job.\n\nWhats nice about 4 units or less is financing you can do fixed 30 year vs balloon mortgage you have on 5+ units. Its also a lot easier to manage and a nice way to dip your toes in real estate. (I own a 4 unit)", "replies": [], "depth": 1}, {"id": "fn5x8es", "text": "Is commercial real estate for you? Only you can answer that. Commercial is too broad. What type of commercial? Office buldings? Apartments? Shopping plazas? Storage? Mobile home park? The list goes on....\n\nFind your niche based on your desired involvement and knowledge. In general commercial takes strong networking. You want to be the person getting the off market deals first. That takes grind, hussle and people skills. The best brokers work with clients who know what they are doing. They avoid the noobs. You could probably buy a turnkey at market rate. \n\nOr do you want to invest with someone who knows what they are doing passively. If so multifamily syndications are your best bet. You put 50k into a 200mm deal. Returns are usually 16-30% IRR annually depending on the deal. \n\nI was in your shoes and went single family in mid west (Im from cali also). This was mostly because i met good reliable people and could not find such people in multifamily.", "replies": [], "depth": 1}, {"id": "fn61b4a", "text": "Personally, working in CRE unless you have a huge pot and manage it well small family offices with 1 or 2 units don\u2019t make the returns they want or could get out of a multi family unit. I would look into residential before commercial, learn and understand it then develop your business from there. $250k could get you into a pretty good investment at the moment, lots of leveraged developers are selling - if you have the cash flow to support the missed payments this is an opportunity.", "replies": [], "depth": 1}, {"id": "fn6ii7q", "text": "My opinion is no, that\u2019s still index fund territory for me. Maybe investing in some real estate funds but you don\u2019t have enough capital to play in the space yet.", "replies": [], "depth": 1}, {"id": "fn6vfn6", "text": "Great question, and reading your replies, really great advice. I'm a professional CRE broker with a major national firm, and I specialize in retail and office. However, I buy and manage multi-family property for myself. I see California as continuing in a long term trend of having single family homes become unaffordable for most workers, and the state making it uneconomical to build new apartments for a growing segment of the population. I transact retail and office properties for clients, but I wouldn't invest in those sectors. Even before Coronavirus, they were plagued by over-capacity, but now, who knows how bad it might get.\n\nIf you're not highly experienced, buy a four unit. The laws are less onerous, and the financing is much better. Then buy something else after you understand maintenance, tenant relations, financing, and economics. I notice that some of the replies recommend taking a CCIM class -- I'm a CCIM, and I also recommend it. Strongly.", "replies": [], "depth": 1}, {"id": "fwr6n8y", "text": "I'd start by investing into fractional/crowdfunded commercial real estate offerings. It'll get you  a peak behind the curtain w/re to PPMs, financials, business models executed by experienced sponsors. Minimum investments per deal are typically $10k-$50k so you can spread your investment around between a couple different asset types, locations, etc. to reduce your risk.\n\nRegister for an account with the Crowdstreet investment marketplace. Your net worth/income should qualify you as an accredited investor and get you access to everything on the platform.  They used to give you a free \\~150 page book on commercial real estate investing once you register - it's a great primer on CRE investing basics (disclosure - I helped publish it years ago when I worked at Crowdstreet).\n\nPing me if you have any questions - happy to help.", "replies": [], "depth": 1}]