Commercial real estate can be one of the most rewarding wealth-building paths out there — but it doesn’t come with a warning label. I learned many of my best lessons the hard way, and if you’re just getting started (or leveling up), consider this your shortcut.

Here are 9 things I wish I knew before diving into CRE — things that would’ve saved me time, money, and a few gray hairs.

1. If equity builds wealth, it doesn’t really matter if you’re active or passive

What matters is your availability, personality fit, and experience—then choosing the role that aligns with that. Active means you will be hands on in the day to day management of the deal. And passive means you are a silent investor, although you will still own equity in the deal.

2. Don’t pick a real estate investing path based only on what sounds interesting

Instead of choosing something because it sounds interesting, think about your personal financial position and goals. For example, you can build wealth through apartment buildings because they tend to appreciate in value over time. But it can be more challenging with mobile home parks, which don’t appreciate the same way—making them a better fit for investors who prioritize upfront cash flow over long-term equity.
Put more weight on your risk appetite, how much cash you can access or raise, and what real value you bring to a team.

3. You don’t need a lot of money to get started

In most real estate mastermind groups or courses, you can learn how to legally raise capital and build skill sets that make you indispensable. Some of the skills that will be valuable to learn are underwriting, lead generation (deal finding), or capital raising, or investor communication.

4. You Don’t Need to Be Rich—But You Do Need to Be Ready

You don’t need to be a millionaire to get into commercial real estate. But you do need to be mentally, structurally, and strategically ready.
This isn’t HGTV where you run into one problem and it ‘works out’ and everyone walks away happy. It’s high-stakes business. You are investing and risking real money, yours, and others. People’s livelihoods and dreams are tied to your ability to return that money and associated profits in the promised time period.
You need to understand the money: where it comes from, how it flows, who gets paid first, and what happens if things don’t go as planned.
You don’t have to be the biggest check-writer. But you do need to understand the capital stack, the debt terms, and how the deal is built.

5. You’ll Hear a Lot of Hype—Learn to Ask Better Questions

People will pitch you deals that sound incredible. Some are. Many are not.
Learn to ask:
How does this deal really make money?
What’s the upside and downside scenario?
Are you financially invested in this deal?
When does it start cash flowing?
How are we protected?
Who controls the money?
Who has the final say & What is their role in the deal?
If someone can’t explain it clearly, they shouldn’t be touching your capital.

6. The Real Way People Lose Money in Commercial Real Estate…

It’s all about doing business with people you like, know, and trust—except in real estate investing. Take your emotion and gut out of the due diligence period. The numbers are the numbers.
When a deal goes upside down, it’s not usually the economy. And it’s not just bad luck.
It’s:
– Bad debt structure (wrong loan for the plan)
Partners who aren’t aligned
No cash reserves or buffers
Deals bought with emotion, not numbers
This business rewards people who ask, “What could go wrong?” before they ask, “How much can I make?”

7. Lending Is Not Like Residential—And That’s a Good Thing

There is no pre-approval letter. No comps. No one-size-fits-all.
In commercial, your deal gets evaluated on things like:

– The property’s cash flow (NOI)

– The plan for improving or stabilizing it

– Your experience and your team’s experience

– The exit strategy (refi or sell)
It’s more flexible. But also more complex. You need a lender who knows investing, not just paperwork.

8. Start Small, But Think Structurally

Even your first deal should have a solid structure.
Know your role: Are you the active operator (GP)? The money partner (LP)? Or the person helping qualify for the loan (KP)?
Learn how profits get split, what happens if things take longer than expected, and how everyone’s contributions are protected.
Don’t worry about buying 100 units right away. Worry about understanding how 1 deal works start to finish.

9. You don’t buy ‘good opportunities, you buy on ‘risk mitigation’.

It’s easy to get excited about upside. But experienced investors don’t chase potential—they protect the downside first.
Ask yourself:
What could go wrong with this deal?

How do I limit the damage if it does?

Do I have multiple exit strategies?

What’s the real risk-adjusted return?

The best deals aren’t just about what you could make—they’re about what you won’t lose.

You can absolutely succeed in commercial real estate. But if you rush into it thinking it’s just “bigger houses” or “passive income magic,” you’ll get humbled quickly.
Learn how the money works. Get around people who tell the truth, not just the upside. Then build smart, one deal at a time.

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