I was speaking with a friend of mine today who started investing in real estate a few years back. Up to this point he has purchased a few 1-4 unit residential properties, and has done pretty well. His goal is to buy enough real estate to retire in 4-5 years, and is well on his way. He also currently works full time. He is starting to realize that financially his plan is working well, but he is having problems finding the time to find enough properties. After a long discussion about his goals, it became clear that what he needs to do is start to look at larger properties. It was obvious to me that this realization made my friend a little uncomfortable. For some reason 1-4 family residential properties seemed safe, but 5+ unit residential or small commercial properties seemed risky. I think that this feeling is common among real estate investors.
Many investors who start with small properties never move to the next level. I believe that for most of them the problem is not one of money, but of fear of the unkown. Over the next several weeks I'll be working to educate my friend in the process of investing in commercial real estate, and hopefully it will bring up several good topics for my blog. If you have questions about investing in commercial real estate in downtown Reading, PA or anywhere in the greater Reading, PA area, give me a call today.