Getting Started In Commercial
I have been fairly successful in creating and growing my single family flipping business and it has worked well for me but to be honest I’m looking for something more.
I recently got my hands a quarter of an acre with a 4 plex sitting on it and its zoned MF33 (up to 33 units per acre) and I am adding 4 more units to the structure to make it an 8 plex. This one deal will conservatively net me around $150k in profit.
This of course got me thinking about doing more of these so called bigger projects and deals to, of course, net the bigger profits.
It seems to me that the commercial market has similarities to the single family market but there are also very big differences and right now its coming across to me as a somewhat daunting task to figure out where to start.
So here I am asking the pros on a good starting point or a direction on where to point my compass to learn more info about this exciting new frontier that is commercial real estate. I’m not asking for all your secrets or anyone to hold my hand I just need a gentle nudge in the right direction.
Thanks in advance for any tidbits of info you feel like sharing with me.
Eagerly awaiting a response,
-Ryan
make sure you check out all the entitlement issues, have a good contractor and good construction loan.
Put on your bunny slippers and start reading every post on this commercial forum! Read everything you can (forums, books, magazines, case studies, loop net), talk to everybody you can has done commercial RE, keep learning, keep learning, keep learning! Thats how we started.
Also, get to know your local commercial brokerages. They will know opportunities in your market and tell you some good success stories about some of their clients and how they started in your area. One
thing that I have noticed, is that is a relationship intensive business. The broker recommends a lender who recommends an insurance agent who in turn recommends the same broker etc..
Before you know it, deals will fall in your lap, people will be telling you about deals, or asking you to join them in theirs.
Happy journey,
Can you send me some contact info on this loan program? Thanks - Matt
Quote:
I know of a loan program that will finance 90% plus an aditional 10% developers fee on new construction. They will finance the property, construction, and then convert to a permenant loan.
Good Luck!
Thanks for the responses guys! Things seem to be going alright so far, found a couple small deals that im chasing. One of them is building a new 4 plex in a HOT area of town. Found some good land and the preliminary research looks good.
I would also like info on that loan program as I am in the process of trying to put together funding for my little project.
Thanks
-Ryan