What is the best way to start investing in commercial real estate? I think the best way is to buy an apartment building. I would recommend a building with at least 100 units. It takes the same amount of time and effort to buy a building with 100 units as it does to buy one with 10 units. Cash flow and appreciation are also much higher with a 100 unit compared to a 10 unit.

Now that we know that apartments are the best way to start business, how do we go about finding these investments? The easiest and free way to start is to buy by contacting commercial brokers. I would recommend starting at a website like Loopnet. Search for a specific area you like and make sure you put at least 100 units in the search box. Once you find a building that meets your criteria, email that broker for basic information about the property.

When I email the broker, I ask for the property’s marketing kit and anything else they have on the property so I can start looking at the property. What you should look for are buildings with high vacancy, poor management, divorcing owner, foreclosure, etc. You can also include these words in your search criteria to get more specific results. You’re looking for the most motivated sellers you can find, just like in residential. When you buy an apartment building, you are actually buying a business; it’s an apartment business.

This should help newbies get up and running when searching for business leads online. In other articles, I’ll delve into other methods of finding and analyzing deals.