CRE vs Residential & Leveraging Skills (23yo)

CRE vs Residential & Leveraging Skills (23yo)

Member since 2024 · 1 post · 0 votes

Hello BP Community,

I'm seeking some seasoned advice on starting in RE investing.

Context: I'm an underwriter at one of the world's largest commercial insurance firms, specializing in commercial property insurance underwriting. I graduated college last year and I'm starting to build my career toolkit (while paying down just shy of $15K in student loans). I currently live in the metro ATL area, but have history and ties in Charlotte and Chapel Hill (Both NC).

For work, we focus on logistics, senior care, and manufacturing. We utilize an engineering department and do a LOT of analysis to ensure our insureds are adequately protected while also pleasing our broker(s).

I studied finance in college and would confidently say I'm ahead of the curve in equity investing (stocks). However, this is not the case with real estate. Luckily, I am actively researching the ins and outs of REITs and PE real estate deals (both of which I encounter often with work).

Main Point: I would like to get into real estate investing, but I don't know if I should utilize my career CRE learning and enter that space first, or start smaller with residential. CRE has much larger hoops to jump through, but I feel more confident talking to others about the basics of commercial real estate. Also, I have no experience in trades or homebuilding, both of which (in hindsight) would have been nice to work on.

Any general or anecdotal advice would be much appreciated. Also, any comments about taking the homebuilder vs investor route would be super helpful. Thank y'all!

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Griffin Hess:

    Hello BP Community,

    I'm seeking some seasoned advice on starting in RE investing.

    Context: I'm an underwriter at one of the world's largest commercial insurance firms, specializing in commercial property insurance underwriting. I graduated college last year and I'm starting to build my career toolkit (while paying down just shy of $15K in student loans). I currently live in the metro ATL area, but have history and ties in Charlotte and Chapel Hill (Both NC).

    For work, we focus on logistics, senior care, and manufacturing. We utilize an engineering department and do a LOT of analysis to ensure our insureds are adequately protected while also pleasing our broker(s).

    I studied finance in college and would confidently say I'm ahead of the curve in equity investing (stocks). However, this is not the case with real estate. Luckily, I am actively researching the ins and outs of REITs and PE real estate deals (both of which I encounter often with work).

    Main Point: I would like to get into real estate investing, but I don't know if I should utilize my career CRE learning and enter that space first, or start smaller with residential. CRE has much larger hoops to jump through, but I feel more confident talking to others about the basics of commercial real estate. Also, I have no experience in trades or homebuilding, both of which (in hindsight) would have been nice to work on.

    Any general or anecdotal advice would be much appreciated. Also, any comments about taking the homebuilder vs investor route would be super helpful. Thank y'all!


     What is your goal? Is your goal to own either commercial or residential real estate? My recommendation would be to own residential first so you have a much better understanding of the costs to own real estate. But just my opinion.

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  • Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
    2y

    @Griffin Hess, even though you feel more confident networking with others regarding the basics of commercial real estate, you seem pretty knowledgeable, so you'll likely pick up on residential real estate investing reasonably quickly. 

    Moreover, even if you decide to go the commercial route, given your age and current position, I still highly recommend the investment strategy of house hacking. Atlanta is becoming an expensive market, and I don't see that slowing down or reversing soon. If you're unfamiliar with the strategy, reference the forums for further insight. House hacking is one of the most risk-averse residential investment strategies and will allow you to test the waters and strategically plan from there. 

    Where'd you graduate from? I'm happy to connect! 

  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    2y

    It's a lot easier to get into residential first, starting small, and seeing if you take to it. You will have some advantage in commercial with your current job. If that's the route you choose to go, look for something small and build.

  • Wyatt WolffPro Member
    Lender · Charlotte, NC · Member since 2019 · 467 posts · 278 votes
    2y

    Ill cut against the grain here. Own residential, work in commercial. 

    Residential investing will teach you what you need to know, scaled down, as far as running a business and numbers go. 

    Working in commercial will play to your analytics background, and will allow you to build robust systems and processes. 

    Everyone that I have worked with on the commercial side has been awesome, and I have learned a lot through them. 

  • Investor · Arizona & Oregon Coast · Member since 2023 · 128 posts · 113 votes
    2y

    @Griffin Hess Are you still on here? I can give you some good context for what you are asking. My initial background was in Commercial Real Estate and then I expanded into residential real estate. I am more than happy to give you a lot of detailed insight and my experiences, but before I do a long write up I want to make sure that you are still on here and will see it. 

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