Buying Commercial Property for Beginners: How to Start – Insights from Carlos Santi

Getting into commercial real estate may seem intimidating at first, but with the right guidance, it's one of the most rewarding investments you can make. Expert investor Carlos Santi emphasizes that understanding the fundamentals is key before diving in. Whether you’re interested in office buildings, retail spaces, or warehouses, this beginner’s guide will walk you through the essential steps to start smart.

Step 1: Understand What Commercial Property Involves

Unlike residential property, commercial real estate includes income-producing buildings such as offices, retail units, industrial facilities, and multi-family housing (5+ units). These properties are generally leased to businesses and offer higher returns—but also come with more complex responsibilities.

Step 2: Set Your Investment Goals

Are you buying for long-term rental income, resale profit, or business use? Define your objective early. Carlos Santi suggests setting a realistic budget and timeline to avoid getting overwhelmed during your search.

Step 3: Assess Your Finances and Funding Options

Commercial real estate usually requires a larger down payment than residential property. You’ll need to review your credit, consider working with a commercial mortgage broker, and explore financing options like SBA loans or investor partnerships.

Step 4: Research the Market

Location is crucial. Look at local market trends, zoning laws, and future development plans. A promising location can significantly increase a property’s long-term value.

Step 5: Assemble Your Team

Buying commercial property involves legal, financial, and technical aspects. Consider working with a real estate attorney, broker, accountant, and property inspector to navigate the process confidently.

Step 6: Conduct Due Diligence

Before buying, evaluate the property’s condition, tenant history, lease terms, and ROI potential. Inspections, title checks, and financial reviews are a must.

Step 7: Close the Deal and Manage Wisely

After negotiations and final paperwork, the property is yours. Consider hiring a property manager or managing it yourself, depending on your time and experience.

Conclusion

As Carlos Santi often says, the key to success in real estate lies in preparation and patience. Buying commercial property is a long-term commitment—but with the right approach, it can be a powerful wealth-building strategy for beginners.