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!