276: How to Get Into Commercial Real Estate Investing (For Beginners)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 8 April 2023

⏱️ 59 minutes

🔗️ Recording | iTunes | RSS

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Summary

Learning how to get into commercial real estate investing seems like a challenging task. With so much industry-specific verbiage and vocabulary like cap rates, pro formas, NOI, triple net, and more, a rookie real estate investor can seem put off by the seemingly tricky world of commercial real estate. But what if we told you that finding, buying, and making money from commercial real estate was much easier than residential real estate? What if you could build wealth quicker, buy more valuable properties, and reach financial freedom faster with just a few deals instead of dozens of single-family homes? Today, we’ll show you how to get started! New investors often put commercial real estate on the back burner, but nothing stops you from buying a large property right now. To explain how to do it, we brought on Annie Larner, commercial real estate broker based in Northern Colorado. She’s seen everything from warehouse deals to self-storage, retail centers, and office spaces. She knows EXACTLY what a beginner can do to get in the game and why commercial may be a FAR better option than going down the residential route. In this episode, Annie will explain exactly what commercial real estate is, how it’s valued, and the different types of properties you can buy. She also goes in-depth on why it’s MUCH easier to purchase commercial real estate than residential and how using a broker can help unlock hidden deals that other investors aren’t aware of. So, if you’re still chasing small deals and want to level up to where the real money is made, stick around! In This Episode We Cover Commercial vs. residential real estate and why buying bigger properties is easier Using a commercial real estate broker to find deals that no one else knows about How to analyze a commercial real estate deal and pro formas explained Due diligence, inspections, and what to do once you have a property under contract Cap rates, NOI, and how to value a commercial real estate property The BEST property type for beginners with the most gradual learning curve How to find commercial tenants, lease types, and zoning rules you MUST pay attention to And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent Ashley's Instagram Tony's Instagram CatyList CoStar Crexi MLS Mojo Dialer Real Estate Rookie Facebook Group Loopnet Realtor.com Zillow Connect with Annie: Annie's Email Annie's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-276 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is a real estate rookie episode, 276.
0:04.6	There's literally no reason not to use a broker. They'll negotiate for you. They have a better sense of what's going on in the market.
0:09.6	What, um, what valuation is, you know, the right valuation, what to come in at, how to negotiate.
0:16.0	I would, so that's number one, find a broker. And they're out there. And I would search for specifically a commercial broker.
0:21.2	Um, some kind of dip in both worlds, but if you're doing commercial all day long, you just have a better sense of what's going on in the market.
0:28.2	My name is Ashley Care and I'm here with my co-host Tony Robinson.
0:32.0	And welcome to the real estate rookie podcast where every week, twice a week, we bring you the inspiration, motivation, and stories.
0:38.0	Need to hear to kickstart your investing journey. Today, I want to shout out someone by the username of Kell Bell at well.
0:43.5	Um, they love this. The five star review and says, my husband and I both started listening to this podcast in October of 2022.
0:49.9	And I've been so inspired by Tony Ashley and all of their guests. With the help of this show, we were able to jump into action
0:55.9	and purchase our first home by mid December. As raft guides, we spend half the year in Colorado and the other half in St. Louis to the game plan now.
1:03.8	So utilize our other St. Louis home as a midterm rental for traveling nurses during rafting season and the fall months were out in Colorado.
1:10.6	Thank you so much all for the great insight. Kell Bell at well, we love hearing stories just like that.
1:16.3	So we appreciate you giving us a shout out in that five star review. And if you're a rookie audience member and you haven't yet left us a review,
1:22.4	please do the more views we get, more views we can, or sorry, the more views we get, the more people we can help,
1:27.5	more people we can help is what we love doing here. So there you go. Ashley was going on. You got like a different background today.
1:32.9	You're just like traveling the last couple of weeks. Every time I see you, it's a different scenery behind you.
1:37.1	Yeah. Well, this one is because we usually don't record on this day. So I'm actually at was going to be my feature office.
1:44.9	Oh, I'm currently sitting at, so I did like a full kitchen in here. So it could be a residential unit.
1:52.0	Two, it's, you know, I didn't need as my office anymore, but I'm currently sitting at the kitchen counter where the dishwasher goes.
1:58.4	And I don't have the dishwasher yet. So my leg, there's just a different that opening of the cabinet.
2:03.1	That's actually a dirty covee. It's fitting here. So it's not a fuel, but yeah. And you got like a beautiful view behind you.
	...

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