Commercial Real Estate New Career Advise!?

Question

Hey Everyone!I've recently decided to move to Colorado Springs on August 1st to put my roots down and start acquiring commercial multifamily real estate (target 1 per year). I've based this decision on a combination of both quantitative and qualitative analysis of the area. My current role allows me to work remotely and I make decent money, but I'm planning on quitting and focusing all my energy on this business so I can learn everything there is to know and maximize my chances of success and financial independence.I plan to move there, secure a one-year lease, get a deep understanding of the market and area, find a partner, and build a team of professionals.My question:Based on your experience what role/jobs/opportunities would you be looking for to get the best feel for the commercial multi family as a whole? I've considered applying to property management roles and office tenant representative roles but I've talked to some property managers for commercial apartment companies and they've told me it's mostly clerical work(i.e signing new leases and invoicing for fees). Should I be targeting larger or smaller companies to learn the most about the business? Or am I better off continuing to read as much as I can, just keep my day job, and learn as I go when the right deal comes up?Any advice would be much appreciated from people in this field willing to share some of their insights. Note: Originally I considered doing a residential multifamily house hack but after learning about how CAP rates are evaluated on commercial property and how you can significantly increase property value just by increasing NOI my mind is made up. I'm planning to do a buy-and-hold strategy. Thanks CM

Juan De La Garza · Answer

Hey Chris - I think this is a question of learning to be an entrepreneur vs a technician. A question you can ask yourself is - can I make a better burger than McDonald's? Most people say yes they can. The next question to ask yourself is can you build a better business model than McDonald's? Most people say no. The point is, being a good technician doesn't mean you can go out and successfully start and operate said business. I would suggest spending your time around investing in apartments. How to analyze deals, how to raise money etc. You can always hire a property manager vs becoming one, you can always hire a real estate broker vs learning how to become a salesperson. Think of the actions which yield you the most value and learn those before learning anything else. You can do this by finding a local investor and finding a way to add value to them. Help them find deals, help them market, help them call apartment owners, better yet, help them do whatever they don't want to do - this willbring you in proximity with someone who is doing what you want to do and proximity is power. You will learn from being around the business owner more than you will from being around the technicians. If you can't find said person or you don't want to go this route then I would recommend getting a paid mentorship. What I would definitely not recommend is going at it alone. We don't know what we don't know and that can be catastrophic. It may have worked for some, but it's a risk you don't need to take.juan

Jeffrey Donis · Answer

Hey @Christopher John McCarthy , congrats on making the decision to jump into commercial real estate! I'd recommend you join a mentorship program. This will help you cut your learning curve, leverage your mentor's track record to get into deals quicker, and have access to a network of other investors you can mastermind and partner with.The right mentorship will give you DIRECT access to the main mentor, and this mentor will partner with you on deals. Also, you MUST have access to other students. You can talk to other students to ask them about their experience in the group, and if you join, you can work together to find deals, raise capital, etc. Think Multifamily with Mark and Tamiel Kenney is a group that I joined because it met my criteria. Make sure to identify what you want out of a group, and then go hunting for the right one.PM me if you have any questions about how to find the right mentorship program, or if you simply want to connect. Thanks!

Charles Kao · Answer

@Christopher John McCarthyIf you want to get a job in commercial real estate that will help you the most I would try for an analyst role at a big boxbrokerage.

Christopher John McCarthy · Answer

@Juan De La GarzaCompletely agree with you Juan. That's what I'm going to do. I will find someone whos already successful in commercial real estate and find a way to offer value to them so I can learn from the expert. If I get lucky maybe he would be willing to even help me on the first property. Thanks for the insight!Best,CM

Christopher John McCarthy · Answer

William Costello · Answer

Hi @Christopher John McCarthy congratulations on the career move! Sounds like you are doing all the right things and asking the right questions. Are you looking just to invest in the Colorado Springs area?