How to Get Into Commercial Real Estate: 9 Steps
Becoming a real estate professional is a process, but getting into commercial real estate is a whole other ball game. There are a few things that you can do to help yourself break into the commercial real estate market and set yourself up for success.
The only difference between a regular residential real estate agent and a commercial real estate agent is the purpose of the building being sold. Commercial real estate professionals sell or lease properties that are going to be used for commercial purposes. However, the commercial and residential markets are totally different from each other, and require different skillsets for success.
Although commercial real estate sells for much higher amounts of money, one sale can take a super long time to become finalized. In other words, the cycle of a sale from start to finish takes significantly longer than in the residential sector. In addition, commercial real estate doesn’t turn over as quickly as residential real estate tends to, which makes it a bit more competitive, and a bit more difficult to succeed in.
To help you get started in this industry, here are nine tips
1. Be prepared for unpredictability
The commercial real estate business is even more unpredictable than the residential real estate business. As such, it is a good idea to have a good amount of experience under your belt. You should also have a good chunk of money saved up before trying to hop into this market. In the case of tight finances, you may want to explore commission advances as a way to make ends meet.
2. Get some experience
In order to get into commercial real estate, it is a good idea to start by gaining some experience in the industry in general. Start in the residential industry, and get any experience you can in real estate before taking the leap to the commercial realm.
3. Ask the pros
Talk to some people in the industry who are already in commercial real estate. Ask them questions about their jobs – What do they like? What don’t they like? Find out what you can expect when you get into the industry yourself. What will starting out be like for you? How long did it take to get to a comfortable spot in the industry?
There are so many questions you can ask to help gain a deep understanding of what to expect, and having a good conversation with someone who has your dream job is an excellent way to gain this understanding.
4. Have patience
Another key characteristic you’ll need when stepping into commercial real estate is patience. Although some commercial real estate deals can move quickly, for the most part the process is slow-going, and one deal can take several months to be finalized and paid.
5. Understand why you’re in it
It’s not fast cash and easy work. You have to work your business, keep your communication open, network, and overall just put yourself out there. If you’re in it because you think you’ll make a quick chunk of change and then relax, you’re sadly misguided.
6. Take classes
You don’t necessarily require specific education such as a diploma, certificate, or degree to be a commercial real estate agent, but it certainly helps. Taking education in real estate will ensure you know the best practices to be successful in your field. As well, other education such as financial knowledge and other similar fields can help you to better understand the numbers behind what you’re doing. This is super important in commercial real estate.
7. Get licensed
There are certain licenses that are required to be able to sell commercial real estate. Before you can even start trying to sell, you need to have the correct license to do so. This can change depending on where you are, so contact the local real estate association to ensure that you have what you need. Typically, there will be a training program to complete, and an exam to pass in order to receive the license.
8. Find a niche
Many commercial real estate professionals will choose an area or a niche of commercial real estate, like retail or food services. Choosing that niche allows commercial real estate professionals to focus their search for clients and contacts in a particular way. It also gives them an opportunity to hone their skills specifically for selling one type of property. Practice makes perfect, so it is logical to assume that after selling a similar kind of property over and over again, you will get pretty good at it.
9. Learn the lingo
When companies are looking for commercial buildings, they aren’t looking for the same features as people looking for residential properties. Learn the features and the lingo that buyers will be interested in. Learn what people will be impressed with, and what is going to fall flat. If you’re going to sell commercial property, you need to understand it.
