Closing The Knowledge Gap In Real Estate Investing
When you’re thinking about investing in commercial real estate, it’s common to feel like you don’t know enough as you start out. Real estate terms such as leases, cap rates, zoning laws, and financing structures can seem overwhelming. It’s also a relationship business, and who you know matters. You’ll want to have valuable information to share with others so that you can move forward with deals.
I often get asked about ways to increase knowledge for real estate investing. Throughout my career, I have spent time listening to podcasts, reading publications, and speaking to others to stay on top of trends and gain insights. There are various tools you can use to grow in your understanding of commercial real estate and gain the Insider’s Edge to investing. In this second artice in a three-part series on overcoming challenges to investing, we’ll look at how to fill the knowledge gap (see the first article here).
Why Knowledge Feels Intimidating
Unlike the stock market, where you can track prices with a click, real estate isn’t always transparent. Two buildings on the same block can sell for very different amounts, and the reasons aren’t always obvious to beginners. That lack of clarity can make you feel like an outsider.
Fortunately, you can gain knowledge wherever you are located. When I started my career, I knew very little about real estate. I spent the first 90 days studying a market to become an expert of it. I was soon able to share insider knowledge with clients because I was so familiar with the neighborhoods I had been researching.
How You Can Gain Knowledge
Start with these tactics to better understand your area and get ahead of the competition:
- Study markets intentionally. Pick one area or property type and dive in. Learn vacancy rates, rental prices, and development plans. The more you focus, the sharper your insight becomes.
- Read and listen daily. Industry publications, podcasts, and reports are valuable. Outlets like The Real Deal, Commercial Observer, and Globe Street share stories that reveal how deals happen and why.
- Take structured learning seriously. Programs like A.CRE’s Accelerator or similar underwriting courses teach you how to analyze properties scientifically. Numbers like net operating income and capitalization rates will quickly start making sense.
Learn Through Mentors
Knowledge grows faster when you learn from those ahead of you. A mentor can shorten your learning curve dramatically. They can show you how to look beyond the surface, recognize red flags, and spot opportunities. When I started out, I was fortunate to have great mentors who I could listen to and observe, Paul Massey and Bob Knakal.
If you don’t already have a mentor, you can look for one through your current network, local real estate associations, or online communities. Many successful investors are willing to help those who show initiative and accountability.
Don’t Wait for Perfect Knowledge
It won’t be possible to know everything before you start, as part of the process will involve going through experiences and learning from them. You might start with a goal to have enough information to spot a good opportunity and find a partner for a deal.
As you move forward you can continue to build your network and look for experts who are willing to share their experiences. By steadily building your knowledge, you’ll gain the confidence to evaluate opportunities and take action.
In real estate, knowledge can be a career-long process. You’ll want to keep reading, analyzing deals, and talking to others. As you do so, you’ll move closer to making investments that fit your business plan and building a long-term portfolio.