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What are three things I wish I knew before I got into commercial real estate?
Number one, it’s not that hard.
Honestly, commercial real estate is a math game. You have to understand that all of it comes down to hard numbers. It comes down to making sure the equation is met.
So when you’re dealing with businesses and you’re dealing with investors, they want to make sure the asset is going to perform to the level to which they can make their profit. They want to know the costs are not going to outweigh the benefits.
So if I knew that it was not so complex to get into commercial real estate, I would have done it a very long time ago.
Number two, you can have just as much fun as if you were in a residential property.
Commercial properties are just as sexy to me whether you’re talking about a five-unit property, and a multi-family asset, or you’re talking about a 10 000 square foot restaurant.
I love the idea that in a commercial property you can create something, you can make something new – new, fun, hip. So all of the cool restaurants you go to, all of the cool clubs you’ve ever been to in New York City, those are all commercial assets and sometimes they look like nothing as to what they look like when they are completed.
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