Why Buy Small Residential Properties When You Can Go Big Right Away in Commercial? Explode Your Real Estate Investing by Getting Into Commercial and Multi-Family Apartments!
Your parents may have warned you to “start out small” to avoid getting in over your head, but I’m here to tell you that real estate is one playground where you may want to rethink that advice and go big right out of the gate. It’s not unusual for people to ask me if they need to start small when they’re buying real estate-owned properties (REOs) and notes. My answer is usually pretty standard and it goes something like this: “You always want to start at a comfortable spot, but then you’ll want to go big as quickly as you can because that’s where the real money is.”
Investing in commercial real estate can actually be easier than buying houses and small multifamily properties, and it definitely gets you to your financial goals infinitely faster. Commercial investing is not only doable, but there is currently a glut of opportunities on the market in this space. It’s extremely profitable, and the time to get in is now. I’m talking about working directly with banks, buying notes (the mortgages on the properties themselves), REOs (properties that have been foreclosed on and are currently owned by a bank or lender, short sales (properties that are at or nearing default and currently under negotiation to be paid off for less than what is owed on the mortgage), and other distressed properties.
In my line of work, I show people how to go big. I teach them how to shake off some of that age-old advice that they’ve been following for years and take a new approach to their budding businesses. “It’s like eating an elephant,” I’ll explain to them. “To achieve your goal, you want to take one bite at a time.” In the real estate realm, those “bites” are actually deals. You want to find one at a time and then submit your letter of intent for each. (I’ll cover letters of intent in a future blog.) Once you’ve secured a great deal, you can then wholesale it and start making money on it immediately.
Now, in this business you’ll find that a lot of new investors start out by buying just single- or multi-family residential properties, but what many of them don’t realize is that they can break out of that mold and go big at any time. They’re not relegated to becoming landlords. The world is literally their oyster. I started out by purchasing a 3-family property and then immediately jumped to a 104-unit complex. You can do the same thing that I did, and I’d love to show you how to do it! You can find that great deal that’s out there with your name on it, just waiting to be snapped up. And remember, you don’t have to “start small” to achieve your dreams. Just get out there and take action!