Financing big deals

[Ryan McElroy]

Hi guys! Im a new investor starting out in real estate investing. I have no money of my own to invest, however i want to get into owning large commercial properties like strip malls, office buildings, parking garages, ect. I dont really care for smaller game (4-25 units), i want the big boys that generate lots of passive income. My question is, where do i get money to finance these large deals? Where can i find mentors who do these large deals consistently? Im a hardworking, motivated guy whos ready to bust his a** to get what he wants. I just need some help on how to get there.

Thanks! Ryan

[Chris Winterhalter]

@Ryan McElroy

If you are a newer investor without any funds you might want to gain the experience and network before you start using other peoples funds to invest. Although you will hear about a fair amount of successful real estate investors that didn't start with a lot of money the list will shrink when you add in starting with larger deals. Also the market is extremely hot right now especially across most CRE asset classes. The competition is capitalized, experienced, and intelligent. Without a track record you will find it extremely difficult to get investors to fund your deals. Even with a wealthy friends and family network they will more than likely want to see some type of experience. A partner could potentially bring experience to the deal however you will still need to bring value. Also you will need funds to source deals, due diligence, earnest money, etc. This easily reaches 6 figures+ for even small sized commercial deals 1-3MM+.

I see you are a recent college grad, have you thought about working in real estate to gain experience?  I don't want to discourage dreaming big however you will have to consider the challenges.