Trying to Become Commercial Real Estate Investors

So many real estate investment options...

So many real estate investment options...

It’s tough to find a residential property that makes sense to buy right now… and that’s been our focus for a long time. When we sat down to discuss our investing goals for 2008 we decided that it was time to venture into commercial real estate investing. It’s not a completely new place for us to go as Julie’s parents have been active in commercial real estate investing, and I recently became a commercial real estate mortgage broker. But, there are some big differences between the two. I wrote an article last year regarding the comparison of commercial investing to residential investing. They are both real estate investments but they are very different beasts.

We are currently putting in an offer on, what we think, is a great little retail/office building. It’s just a small step for us, but we think it has a lot of potential. Our intention is to begin purchasing several commercial properties and build a portfolio of commercial properties while retaining most of the properties in our residential portfolio. This will help to diversify our risk a bit (commercial and residential do not always follow the same cycle), and help us become experienced commercial investors. We’ll keep you informed on our progress and we will pass along our commercial learnings just like we have with our residential ones. Hopefully we learned enough from our many mess ups in our residential investing that we will make fewer mistakes investing in commercial than we did with residential. We just can’t afford as many mistakes!!

Keep looking for updates and please tell us about any commercial real estate investments you have done or intend to do!

3 Comments

Filed under investing, real estate

3 responses to “Trying to Become Commercial Real Estate Investors

  1. Goldie

    i hear that the metrics are saying the commerical real estate in Niagara Falls is profitable.

  2. i like money

    i read your article about residential vs. commercial real estate investing… but i don’t get it… why is commercial so much more difficult? if residential is working as an investment for you why does commercial interest you? as a new real estate investor should i be looking to get into commercial first or residential first and why? commercial does seem more complicated but more money in it?

  3. Hi “i like money”,

    Good to hear from you. Rather than go on and on about the differences, your best bet is to read:
    http://revnyou.com/Commercial_Real_Estate_Investing.html

    This is an in-depth article we wrote regarding the Pro’s and Con’s and differences between Commercial Real Estate and Residential Real Estate. It’s a good starting point for you. It also explains a bit about why we are considering investing in commercial properties.

    The simple answer is that we want to diversify our holdings. So, we don’t want to have all of our equity tied up just in residential properties. Further, commercial can be more lucrative, however, as we noted, it is more costly to.

    As a rookie investor, I would suggest first getting into residential real estate as it’s easier to understand and less expensive. However, if you’re gung ho about jumping into commercial investing, you could always look for a mentor to help you understand it better. Mentors are great for learning the “in’s” and “out’s” of anything. You just have to find the right one!

    Thanks for reading! We hope to hear from you again!

    Dave

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