There are several ways one get can into Commercial Real Estate depending on what their looking to do within this unique and fascinating industry. Some individuals choose to become commercial real estate agents or brokers representing investors in the purchasing and sales of commercial real estate properties, while other with investment capital may choose to act as principles. Depending on what individuals interests are, there is several ways to get into commercial real estate.
Becoming A Commercial Real Estate Agent:
Like many people looking to get into commercial real estate industry an individual traditionally starts off by becoming a licensed real estate agents or broker, and throughout the course of their careers transition into becoming principles within the commercial real estate industry. When becoming an agent in commercial real estate there are a few steps that must be taken prior to receiving your real estate license.
Prior to obtaining your R.E. license the Department of Real Estate requires that all individuals pre-qualify. The Department of Real Estate or DRE requires that all applicants meet the minimum mandatory standards, prior to scheduling their state exam.
An applicant looking to acquire a real estate license must first meet the following minimum requirement;
• Be 18 years are older
• Have proof of legal residency within the United States
• Disclose any criminal convictions
Once an applicant has met the above mandatory minimum requirements they are then allowed to proceed in enrolling in the many professional real estate schools that have been approved by the California Real Estate Commissioner. These schools provide the educational courses required by The DRE (Department of Real Estate) prior to scheduling your real estate exam.
Below is an outline of the courses that are required to be completed prior to taking the state exam.
1. Real Estate Principles
2. Real Estate Practice
3. One course from the following list below:
• Real Estate Appraisal
• Property Management
• Real Estate Finance
• Real Estate Economics
• Legal Aspects of Real Estate
• Real Estate Office Administration
• General Accounting
• Business Law
• Mortgage Loan Brokering and Lending
• Computer Applications in Real Estate
• Common Interest Developments
*For more information on additional requirements and conditions to licensing you can go online and check the department of real estate within your state.
While some individuals follow the traditional route into the commercial real estate industry as mentioned above, others that have the financial means tend to get their start in the purchasing of smaller commercial assets, such as single tenant retail opportunities, or 5+ multi-family (apartment) opportunities. In other cases some investors choose to join commercial real estate syndication which allows multiple investors to pull their money together giving them stronger buying power within the market while limiting their financial exposure by going it alone.
For individuals that are looking to get into the commercial real estate industry on the investor or principle side, it’s important that you familiarize yourself with the ever changing market. Like any other investment within your portfolio, the key to a successful investment is to generate positive income, and by educating yourself in commercial real estate you’ll increase your chances of doing so. There are a few things one can do prior to investing in commercial real estate to increase their chances of success, in addition to having a working knowledge of commercial real estate. In almost every commercial real estate transaction you’ll find agents or brokers whom represent the parties involved whether that is the buyer’s agent, or sellers.
When looking to get into commercial real estate industry it’s important to meet with several real estate agents/brokers prior to deciding which one to have represent you over the course of the transaction. It’s vital to do your research when selecting a Licensed Commercial Real Estate Agent or Broker to represent you, because an experienced Commercial Real Estate Agent can make the difference between consummating a successful transaction, and losing the deal due to incompetence. Individuals looking to get into commercial real should speak with several licensed commercial real estate agents whom specialize in the areas and product types of interest. A seasoned and sophisticated commercial agent or broker can provide you with current knowledge of the market, and has experience in negotiating sales prices and contract terms and the strategy know-how in pricing your offer. The real estate agent also offers exclusive access to off-market commercial real estate opportunities that new investors may otherwise never had access to.
So whether you decided to become a commercial real estate agent or invest in commercial real estate the necessary due diligence should be taken prior to starting out. By doing this you’ll increase your chances of success when getting into commercial real estate.
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