Pros and cons of a Commercial RE agent

[Mark Skaff]

Happy New Year!

I just got my RE license and work on the residential side.

My long term goals are to buy and hold commercial properties.

What are the perks and downsides of being a commercial agent?

Would becoming a commercial agent help with being an investor for commercial rentals?

[David Monroe]

@Mark Skaff If your goals are to invest in commercial properties then you should go commercial. The only downside to doing commercial, in my opinion, is the length of the transaction cycle, can be from 3 to 9 months. Be prepared to have fewer closings than a residential agent would be used to but the commissions are higher to make up or it, if you're targeting higher priced assets.

The experience you will get in learning the transaction process, the due diligence required, and the financing strategies to get the deal closed will be better than any training from a Guru because you're in the transaction and learning it first hand.

As far as tools, yes they're more expensive in the commercial world, it's just a cost of doing business, get's you larger to deals to make up for the expense, and lowers your overall tax bill at the end of the year. I pay $2000 a month for CoStar to have the National database and could not be successful without it. There's no better tool on the market for multifamily properties. You can get a local subscription for as low as $250 a month, I believe.