Office buildings

Office buildings

Norcross, GA · Member since 2014 · 4 posts · 1 vote

I am currently 16 years old and planning to pursue a career in commercial real estate. My goal is to buy office buildings and build a portfolio consisting of 1 million or more square feet, however the problem is figuring out how to start. I want to graduate college with a degree in business and start investing as soon as possible. I do not know how I can invest without any money. Also, I was trying to build an imaginary portfolio and see if I could cover my expenses and mortgage, did not know how much exactly the expenses were, however I was able to cover the mortgage with a substantial amount left over. I was wondering should I borrow a large amount to buy all of my buildings from the start since it can cover my mortgage and most likely the expenses or should I build my portfolio in stages(by the larger properties first and pay off the loan before borrowing to buy other decent sized properties)? 

Sorry my question was so lengthy, a response would GREATLY be appreciated. Thank you:)

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Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
11y

Thinking big!! I like it!

You're 16 and already thinking bigger than most people do at ANY age!

Read and learn as much as you can the next few years. Focus on keeping yourself in good financial standing and network as much as possible. Try to find someone in your area that is investing successfully in real estate and see if they will allow you to work for them. Do it for free if you have to, just get some experience. It doesn't have to be a commercial investor, just someone that will help you learn the basics and keep you pointed in the right direction.

Youre most likely going to need some partners or private lenders so be sure to network along the way and build those relationships so they may rise to the next level.

Good luck and spend lots of time on this site. Tons of great info!

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  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    11y

    Unless you find some truly desperate seller you're not going to buy an office building with no cash.  Significant down payments are going to be required, 25-30% or more.  You might be able to get by with less with a seller carried second, but you're still looking at 15% or more down of your own cash.  So, yes, if you want to buy a $5 million office building you need $1 million plus to do it.

    You're unlikely to get a large loan without experience.

    Great to have BHAGs (Big Hairy Audacious Goals).  Most folks cut their teeth with small properties, then ratchet up as they can put in more money or can roll the appreciation from one building into the next.

  • Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
    11y

    Thinking big!! I like it!

    You're 16 and already thinking bigger than most people do at ANY age!

    Read and learn as much as you can the next few years. Focus on keeping yourself in good financial standing and network as much as possible. Try to find someone in your area that is investing successfully in real estate and see if they will allow you to work for them. Do it for free if you have to, just get some experience. It doesn't have to be a commercial investor, just someone that will help you learn the basics and keep you pointed in the right direction.

    Youre most likely going to need some partners or private lenders so be sure to network along the way and build those relationships so they may rise to the next level.

    Good luck and spend lots of time on this site. Tons of great info!

  • Norcross, GA · Member since 2014 · 4 posts · 1 vote
    11y

    Thank you so much for the responses. It gives me a good idea of where I should start. Any additional information that you think might help me as a beginner? 

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    11y

    Grant, the very best investment you'll ever make is in your education! Great to have the goal, but you most likely won't get near it without the education, especially in commercial real estate.

    Don't forget, RE is a social business, it requires knowing people, making contacts, being community minded and there are civic responsibilities, you education will help you in these circles that can make the difference between making do and real success. So, study well! 

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    11y

    @Grant Williams 

    Welcome. Take the time to build the foundation below. Check out student housing see below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 90 past ones to catch up on.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

    Consider checking out HUD homes for small multi's owner occupied gets first crack.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good luck

    Paul

  • Real Estate Investor · Milford, PA · Member since 2014 · 395 posts · 299 votes
    11y

    You seem to know what direction you want to go in. That's 90% of the process. Now you need to create a plan.  You should look at the Certified Commercial Investment Member (CCIM) course. .  I have not taken it and have no real knowledge of it, but Many folks here speak very highly about this course. It will give you a great foundation to stand upon. It is not cheap.  But is worth adding to your how am I going to get from 0 to to 1M plus in square footage plan. You can and will make this happen. Each day make sure you take a step, no matter how small, forward towards that goal. 

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