Need Career Advice- Residential V Commerical

[Andrew Hamilton]

Hello!

I've been on BP for a few months now. Never posted or commented just reading. But now I need some advice.

Background: I have a double major in Finance and Economics so I like the numbers but I don't like crunching numbers 40 hours a week. I have a great job(as good as the corp world gets). I own my condo. I'm 23 and very good with my finances.

Advice: I was originally just assuming that I had to start in residential real estate. I thought about commercial early on but then I just assumed that residential experience was needed. But after doing some more research I don't think that's the case. I have learned that since they are completely different in many ways experience in residential isn't that much more valuable. I understand that commercial is based on business decisions and residential is emotions. I would work toward the CCIM if I took the commercial route.

Question: Thoughts on jumping right into commercial/investment space rather than residential?

P.S. I'm willing to make this a career just not right away

[Joel Owens]

It depends on what you are talking about with commercial and whether your target area is rural, suburban, or urban.

Rural you run into these all in one brokerages who do commercial, residential, land, etc. Most commercial businesses there are mom and pop and not national tenants because the demographics are not there and the town is loyal to the small businesses.

Strong suburban will be a mix of mom and pop and national tenants as the area gets better with demographics it will start changing and growing. You will have a mix of large commercial brokerages and catch all type brokerages active in the area. The catch all will focus more on mom and pop businesses. The big firms will have more of a national client base.

Urban it's mostly big CRE companies with a few focused on mom and pop tenants.

If you want training mom and pop catch all does the very small stuff. The CRE firms for national does the larger transactions and clients. If you need cash you might do leasing in between sales to live on for awhile. Once you start landing large closings with frequency you should be able to do that full time.

Leasing is a low income activity on the commercial side in my opinion. I only do transacting as a principal broker.

Sales cycles tend to change where leasing is always there. There is a strong sales market for CRE the last 3 years and I see at least a good few more years ahead. If you have passive investments then if sales ever slow down you can relax. The people living hand to mouth have to become glorified property managers and do leasing in CRE.

You have to plan for the life you want and not the one you are forced into because of inaction.

Some colleagues love leasing it is just not for me. I can do it as a sponsor for a syndicate as my return is larger for equity and cash flow and I enjoy it then but as a straight leasing agent for the effort involved the money just isn't there.