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Commercial real estate dabbling
Blogtober: October 5th
Our income has increased and we are trying to find a way to increase our investments. Out of all available options, commercial real estate seems the most attractive. Just like the book I reviewed said, in the 3rd and 7th cure for a lean purse.
Make thy gold multiply: invest wisely
Improve thy ability to earn: strive to become wiser and more knowledgeable
For more on the review of the book click below
The richest man in Babylon
To obey that law and to invest wisely, one must invest in things that one knows about. In this case, I am a newborn in real estate investing. Am I going against my own wise advise here? Not at all. Before I make a significant investment in real estate, I will educate myself.
I am using the next year to educate myself on the subject. It turns out there are more than 100 ways to make money in real estate.
The Biggerpockets blog post, blew me away with the top 100 ways to make money in real estate. This means there is lot more ways to skin this real estate cat. Until I can come up with a post with the title – 200 ways to make money in real estate, there is no reason to repeat what the master real estate blog has posted.
Here it is for your reading pleasure.
Out of all of the ways to make money in real estate, I thought I had finally narrowed my interest down to commercial real estate and that was the end of it. However, there are many ways to invest in commercial real estate.
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Here are some of the ways to invest in commercial real estate
Multifamily apartment – small or large
Industrial
Shopping center
Office,
Sports and entertainment
Healthcare
Land
Retail
We plan to explore many of the options above, but I primarily favor apartment complexes.
The first topic that would be the most beneficial to me, is to start learning the language of commercial real estate.
What better way to learn commercial real estate, than to begin learning the terminologies and how to calculate them.
This will allow you to quickly evaluate a deal and know if it is good or not.
In tomorrow’s post, I will dig in extensively on how to calculate the net operating income.
I know you want more, but I have to strategically pace myself in this Blogtober thingy.
I am a pulmonary and critical care doctor by day and personal finance blogger/debt slaying ninja by night.
After paying off close to $300,000 in student loan debt in less than 6 months into my real job, I started on a mission to help others achieve the same. There is no magic to this than to strap up and get it done. Some of the ways we achieved this include side hustle, budgeting, great negotiation skills, and geographical arbitrage.
When I was growing up, common knowledge in Nigeria is that there is one thing you cannot trust anyone else with, and you guessed it – your money.
Being frugal came easily to me based on my background. However, the concept of building wealth did not solidify in my mind until when I finished medical school. I wish I knew what I know now when I was 14. Still, I don’t know enough and I am constantly learning to improve my knowledge.
My goal is to reduce financial illiteracy among young professionals. I am catering to the beginners – babies and toddlers in financial literacy.
xrayvsn says
I am a huge fan of multifamily commercial apartment real estate and have been investing it exclusively with my nonretirement funds for over a year.
As an accredited investor I take advantage of private syndication.
I recommend viewing my interview with Dennis Bethel who is a physician who turned real estate mogul (he gives a ton of great links to educate yourself on crowdfunding vs private syndication)
https://xrayvsn.com/2018/07/05/x-ray-beam-dennis-bethel-m-d-37th-parallel/
admin says
Interesting. Can you mentor me? I will definitely check out your interview. I am looking into actually owning the actual real estate. Crowdfunding sounds exciting but it just doesn’t do it for me. However, I might try it out until I have enough capital to go bigger. I will look into syndication.
xrayvsn says
I am not sure I am the biggest expert in the field among the physician docs (I think Millionaire Doc is the best versed on it) but definitely can share what I know. If you want to see what I actually have in my real estate portfolio checkout the post I did on it:
https://xrayvsn.com/2018/08/28/whats-the-alternative/
True Arizona Nicholas Adams says
Awesome post man and awesome choice in an investment. I applaud you taking the time to gain knowledge, before taking action, not too many people now-a-days go that route. I’ve read quite a bit into commercial real estate, even so, I would still consider myself to be an infant in commercial real estate as well! Because there is always so much more you can learn! Especially when dealing with your money and making investments.
But with time, it’ll come easy to make those investments and get $$….And with everything I’ve read, commercial real estate is an amazing choice, if you play your cards right. Looking forward to reading some of your other posts!
Nicholas Alexander Adams
https://True-Arizona.org
admin says
Thanks for stopping by. Real estate is a different world but itself. However, I do like the challenge. I enjoy learning. Whats the fun without the chase? I do hope it becomes easier. Thanks for stopping by.