The Biggest Myth In CRE? That You Need Your Own Capital To Start

One of the biggest myths in commercial real estate investing is that you need to use all of your own capital in order to start investing in CRE. There are lots of ways to get started in commercial real estate and start making money without bringing all of your own capital or any of your own capital to the deal. The first one is sourcing deals. If you can focus your time on finding deals that fit the buy box of strong operators that are well capitalized, you can negotiate equity in the deal or a large fee for finding that property for that real estate investor. I have a client that made his first $10 million by doing exactly this. From their underwriting criteria, learned all about commercial real estate developments and investments, and was able make a lot of money just from sourcing deals. And he started with $0 of his own capital. The next way is you can raise your own capital from people that you know within your network. If you go find a really good deal and there's massive upside, you can go raise the capital for the deal, pay your investors a return, and then you get to keep a portion of the profits as well. Lastly, you can partner up with a strong operator that is well-capitalized and well-experienced and bring sweat equity to the table, whether that's managing construction projects, sourcing deals, as I mentioned before, and helping them raise capital from other investors out there in the markets to get these deals completed. You can negotiate a percentage of the project to start getting capital back in your pocket.