311. Misconceptions about Commercial Real Estate & Leaving Your W-2 | Office Hours

Key Takeaways:

Commercial Real Estate Misconceptions:

Making money is not just about rent exceeding expenses

Commercial real estate investing is not 100% passive

Bigger numbers shouldn't scare investors

Having the right sales team can help get better deals

Advice for Investors:

Treat commercial real estate like a business

Build strong systems to manage properties

Network with brokers and use strategies like mailers to find off-market properties

Don't leave your W-2 job too quickly, as it helps with loan qualification

Personal Experience Insights:

The speaker recently had to restructure his team, reducing staff by using AI and technology

First years in commercial real estate brokerage can be challenging, with low initial earnings

It takes 3-5 years to become a successful commercial real estate broker

Loan and Income Considerations:

Banks prefer lending to those with more cash

Recommended to have 100% of current W-2 income from real estate before leaving job

Consider additional costs like health insurance when transitioning