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FacebookI’ve read a lot of BS online about it. I’ve known several people that are rich doing it. However, I’m really confused about how this business works. Right now, it seems to me like you have to already have a lot of money or real estate to make it in commercial real estate. Those prime locations and huge building are really expensive. I don’t have a lot of startup money and I don’t want to risk much of what I do have. Is it possible to startup small in this business? If so, how? TIA for any help!
Hello, I’ve recently became involved in the commercial real estate business and like you said it is hard to get involved if you don’t have the right connections or big money to invest.
However, many people looking to make money in real estate, become agents. These agents help facilitate a sale by finding a willing buyer for a willing seller. When the deal closes, that agent earns a commission of about 6% to 10% of the sales price. Although many agents make a very good living, there are a few things they must endure in doing so.
1. There is strong competition among agents.
2. Successful agents must work long, hard hours. Most are “on call” nights and weekends.
3. Real estate agents are required to take continuing education classes and follow strict guidelines set forth by city and state agencies.
As you can see, that’s not the best way to get involved…most people get involved in commercial real estate so they can work less…not more. There’s other ways to get involved without all the hassles of being an agent by being a “property scout”.
The property scout’s main objective is gathering information. They find potential deals and then sell that information to potential investors. Many creative financing newbies choose to scout because it does not take any money or prior knowledge to find distressed properties. The Scout finds a property for sale, gathers the necessary information, and then provides this information to the investor for a fee. That fee will vary depending on property cost and profit potential. A Scout can expect to make anywhere from $300.00 to $300,000 or more every time the information they supply leads to a purchase by an investor.
You can find more information about getting involved in commercial real estate at http://www.landhunter.blogspot.com
Hope this helps…