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

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!

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Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup?utm_source=owned_media
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Join the Real Estate Rookie Facebook Group:
https://www.facebook.com/groups/realestaterookie
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Find an Investor-Friendly Agent in Your Area:
http://biggerpockets.com/agentmatch
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The 7 Keys to Commercial Real Estate Investing Success:
https://www.biggerpockets.com/blog/commercial-real-estate-fundamentals?utm_source=youtube&utm_medium=description&utm_campaign=none
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3 Reasons to Switch From Residential to Commercial Real Estate:
https://www.biggerpockets.com/blog/switch-to-commercial-real-estate?utm_source=youtube&utm_medium=description&utm_campaign=none
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Cap Rate—What Is It and How to Calculate It:
https://www.biggerpockets.com/blog/cap-rate-real-estate?utm_source=youtube&utm_medium=description&utm_campaign=none
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Resources Mentioned in This Episode:
Catylist: https://cre.moodysanalytics.com/products/catylist/
CoStar: https://www.costar.com/
Crexi: https://www.crexi.com/
LoopNet: https://www.loopnet.com/
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Connect with Annie::
Email: [email protected]
Instagram: @annielarner or https://www.instagram.com/annielarner/
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Connect with Ashley and Tony on BiggerPockets:
Ashley: https://www.biggerpockets.com/users/echopm?utm_source=youtube&utm_medium=description&utm_campaign=none
Tony: https://www.biggerpockets.com/users/tonyr75?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode #276

Show notes at: https://www.biggerpockets.com/blog/rookie-276?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
03:47 Stumbling into Real Estate
07:12 Easier Than Residential Real Estate?
10:08 How to Get Started in Commercial Real Estate
17:49 Inspections, Due Diligence, and More
21:04 Cap Rates Explained
29:53 Analyzing Your First Commercial Property
33:36 Is Commercial Surviving the Crash?
36:13 The Best Property Type for Beginners
40:11 Finding Tenants and Lease Types
48:10 Zoning Types
50:41 Connect with Annie!