Where to start

[James Sills]

Hello all,

I just closed on my primary residence with an FHA loan so I am not able to house hack since I am obligated to live in the residence for a year. But with that purchase, I bought it with $50k equity in the deal. I plan on using that equity to get myself into real estate investing. I have been reading books and listening to podcasts for almost a year now and I know I need to take action. My goal is to eventually get to shopping centers and strip malls. What or where would be the first place to start.

[Wale Lawal]

@James Sills

From my experience working with investors, transitioning from residential to commercial real estate (CRE) is an exciting and achievable goal with the right foundation. Start by deepening your understanding of CRE fundamentals, including net operating income (NOI), cap rates, and lease structures like triple net (NNN). Leverage your existing equity to invest in smaller properties, such as a mixed-use or retail space, to gain experience and cash flow. Gradually scale by researching high-growth markets, partnering with experienced investors, and exploring financing options like SBA loans. Focus on building cash flow and equity while targeting value-add opportunities to transition into shopping centers and strip malls over time.

Good luck!