How to start investing in CRE?
Hey guys, I’m in corporate private equity and would like to start investing in real estate on the side. I’d prefer to do commercial/multifamily rather than single-family residential. I have a decent amount of capital saved up and am very comfortable understanding the drivers of a real estate deal, but I don’t have any relationships in the sector.
What’s the best way to build connections in the space to start investing in deals? I have a FT job with lengthy hours, so I’d prefer to invest as LP equity or something similarly passive. I’m very familiar with the networking process, but it would feel weird to reach out and ask to tag along in someone’s deal, especially since I don’t have enough capital to really pitch myself as an investor (I’d fit well in “family and friends” type rounds, except that I don’t have any family or friends in real estate).
Anyone have experience in this area?
I started in a very similar position. In my short time in the real estate world, I can tell you 100% that there are no right/wrong ways to jump in.... but i will tell you exactly what I did.
1) Pay to become a ULI member and utilize their industry member directory.. email everyone in your market and ask them to either meet with you or have a 15 minute chat. Introduce yourself and tell them you are getting started. Success rate will probably be 20% but its easy to do and worth it.
2) Put some money in a REIT of your choice and just watch what they do..will be more helpful than you think.
3) Underwrite every deal on crexi in your market.. call brokers and visit properties (2-3 minimum)
5) Build a relationship with a broker who is up and coming... avoid big brokerage houses early on and try to get something off market from your up&coming buddy.
4) Find a home run deal and bring it to someone you met via ULI membership directory.. from there just let things grow organically.. don't ask for much.. just bring the deal and see what happens
5) Rinse and repeat.. I am from a very blue collar family and felt that I would never be able to raise the equity needed to acquire larger properties. That is a huge misconception. Finding the deals is way harder imo. Get good at doing that.
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