Thread: Main Obstacles of Commercial Real-Estate

I wanted to see if anyone on the 4 knows some of the obstacles you run into breaking into commercial real-estate? From the research I've done it appears to be a far better deal than residential, but I'm sure it has its downsides. For instance the tenants in the commercial property take care of taxes, damages, and other costs generally handled by the owner of a residential property. I would love to hear some feedback from you guys, because I doubt its as simple as providing the capital to purchase the commercial property and a hands-free deal from there on. Thank you!

Takes care of damages? Not really. Had a roof leak in my office and the property management company and owners had to pay. Every deal is different. I'm an agent predominantly doing residential deals, but I've done a few commercial and been a commercial tenant as well. There are no hard and fast 'rules' and you're right, it's not that simple. The only thing that seems to be almost ubiquitous in commercial property investing is that you need to find a good management company.

I would recommend getting with a good commercial Realtor in your area and work with them.

Good luck

The biggest obstacle? That's easy: money.

I figure having the down payment for financing is a major obstacle for most investors. I will look into the management companies. It seems to me that starting off in residential and getting my feet wet first would be best. Figure the industry out and them grow from the little green houses to the big red hotels. Thanks a lot for your feedback

Are you looking to buy commercial real estate or work in commercial real estate? I don't know your situation fully but regardless if you want to start working in the industry, make sure you have money set aside because you're going to be on 100% commission and you may not make much money, if any at all, for a few months at least. Hope you find the help you're looking for!

Looking to purchase and lease. Would not be a sole means of income though. I appreciate all of the feedback guys

PM me if you have any more questions and I'll try my best to help you

For instance the tenants in the commercial property take care of taxes, damages, and other costs generally handled by the owner of a residential property.

what you're getting at here is triple-net leased property, also refered to as NNN or "net lease" - under this lease structure, the lessee generally pays for its share of the property's taxes, insurance and operating expenses.

keep researching, and determine what strategy you want to implement. if it's net-lease investment, the most important starting point is having a tenant and finding them space be it an existing building or new build. banks will finance an acquisition based on your lease terms first, because that's what covers debt service.

under this structure, your biggest "obstacle" (if you believe in that terminology) is finding a tenant.

in conclusion, research, research, research.

Very well Swells you sound seasoned as well as ag91 I'm currently employed in Swiss until May so I will begin to dig deeper as you guys have suggested. Luckily I have alot of time on my hands here so I'm in the perfect situation. I appreciate you guys steering me in the right direction.

Hey! Bigd41190, Are you still study commercial leases? Do you have any tips to share. I think we communication improve a lot faster.