296. Listen to This Before Buying your First Commercial Property (Office Hours)

Key Takeaways:

Budget conservatively for unexpected maintenance costs when buying older commercial properties. Factors like HVAC issues, plumbing problems, and deferred maintenance can lead to significant unplanned expenses.

Scaling up in commercial real estate can help minimize maintenance costs per square foot. Larger properties often have economies of scale compared to smaller, lower-cost properties.

Prioritize finding quality tenants and building strong relationships with them. Bad tenants can make an investment experience very difficult, so proper tenant screening and management is crucial.

Consider hiring a professional property management company rather than self-managing. While it costs more, it can save time and headaches in the long run.

Hands-on experience is invaluable in commercial real estate. Finding a partner with expertise can help navigate the initial learning curve.

Focus on acquiring quality properties, even if the upfront cost is higher. This can pay off in the long run with fewer maintenance issues.

Recognize that commercial real estate investing, while more passive than a full-time job, still requires ongoing work and oversight. Setting up the right team and systems is key to scaling.