If you want a fulfilling career in any field, you have to do your homework.
Especially when it comes to the fast-paced and risk-prone world of real estate investing, it’s important to take a serious approach to learning. So, before you jet set into a career in commercial real estate, we encourage you to take a look at our list of tips to get you started.
Remember, becoming a successful investor takes time — slow and steady always wins the race.
Learn to Specialize
Consider specializing in a type of commercial real estate investment. Often, properties are divided between multi-family, retail, industrial and office space; some markets go even deeper by adding in hotels, resorts or other corporate properties into the mix.
Ask yourself, what best suits my interest? And what types of properties do I want to represent? Do you see yourself stomping through industrial properties on a regular basis? Or, are you more interested in fancying through a busy retail space in a large metro?
Remember, tenants widely vary based on the type of property they’re renting. Retail spaces, for example, cater to small business owners, while office properties tend to be populated by upscale and multi-faceted business operations.
Determine Your Market
Once you’ve identified your area of interest, set your sight on the market. Now’s the time to answer the basic questions: What? Where? And why? Your preferred market will, of course, depend on the type of real estate specialization you choose.
Overall, larger markets generally lead to more opportunity and larger rates of return. However, smaller cities incur smaller fees and offer more flexibility. And while the deals are large in major metropolitans like New York, Los Angeles and Chicago, small cities offer less competition for commercial brokers, which may be just what you’re looking for.
It takes skill to make a mark in this field. A successful career in commercial real estate isn’t made off the plight of others. Instead, it’s built up from a foundation of solid connections with brokers, lawyers, designers, architects, landlords, consultants and so much more.
A writer for wallstreetoasis.com put it best when they said,“There is a group of people out there that think if you have help getting ahead you’re somehow less deserving of success. These people look with scorn on those who utilize successful relatives, friends, or contacts you make bumping into each other randomly..These people are fools.”
And it’s true. If your hope is to build a successful career in commercial real estate, you’ll always need to remain open to learning and relying on others. Stay persistent and take the time to build a career from the ground up.
Remember, slow and steady always wins the race.
Stefanie Donahue is a freelance writer based in Bellingham, Washington. She’s a well-versed communicator with an extensive background in journalism and media production. Her writing draws from the insight of industry experts to uncover best practices for real estate investors.