In this episode, I will talk about some of the common struggle and question I’ve been getting from new investors that have just entered the commercial real estate world. Join me today as we discuss the three steps to start investing in commercial real estate.
Things you will learn in this episode:
[00:01 - 05:14] Opening Segment
I share some of the most common questions and challenges for new investors in commercial real estate. I talk about the tactical approach that new investors generally have. Tactical vs. being a strategic investor I talk about the importance of having someone else as a sounding board to help you think through setting up your goals. Find the right strategies based on your goals.[05:15 - 12:49] 3 Steps to Start Investing In Commercial Real Estate
Step 1; Getting clarity. Ask yourself, “how much passive income do you want?” Step 2: “Where are you starting from?” “What are the resources that you have at your disposal?” Step 3; “What are the obstacles in your way?” Find someone else that has gone before you or hire a coach. Finding, financing, and optimizing deals Finding deals Understand the importance of market timing, good properties, cash flow, underwriting, risk, due diligence, etc. Financing the deals Raise capital in debts and equity. Optimizing the deals. Fixing any of the problems (High vacancy, low rents) Increase the net operating income (NOI). Have the foundational understanding of investing in commercial real estate. The active or passive investor You do not want to get into a situation or investment that is flawed from the get-go. Be around people that are honest and sincere. When you are dealing with big numbers, the consequences of making the wrong decision are amplified.[12:50 - 17:29] Working with Me
I talk a little bit about what it is that I do at a very high level. I work with hungry, proactive investors that take action. Two mistakes that new investors typically make. Try to do it all on their own. Wait for the perfect time.[17:30 - 27:56] Closing Segment
If you are interested in my coaching and consulting program, please reach out to me through email at shane@shanemelanson.com or see below for my website link. Final words from me
Tweetable Quotes:
“Comercial real estate is valued on the income, so if you are able to drive the NOI, you can increase the value of the property by a multiple ” - Shane Melanson.
“When you are dealing with very big numbers, the consequences of making the wrong decision are amplified.” - Shane Melanson.
“In the world of commercial real estate, there will never be a perfect time because there will always things that come up.” - Shane Melanson.
Resources mentioned in the episode:
Email Me: shane@shanemelanson.com Shanemelanson.com
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