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Misconceptions about Commercial Real Estate & Leaving Your W-2 - (Office Hours)
Description
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