Discover 5 essential tools to help you overcome fear and step into the world of commercial real estate with confidence.
In this video, you’ll learn how to:
- Conquer fear and take action so you can move toward ownership, financial independence, and freedom
- Shift your mindset to overcome hesitation and self-doubt
- Use key strategies to confidently navigate your first deal
- See real-life examples of investors who took the leap and succeeded
Facing the Fear Head-On
Let’s be real—the thought of executing your first commercial deal can be intimidating. The numbers are bigger, the stakes are higher, and doubt creeps in:
“What if I lose money?”
“What if I mess everything up?”
“Am I even ready for this?”
If you’ve ever felt this way, you’re not alone. Every successful investor, including myself, once stood exactly where you are now.
Understanding Fear: Where Does It Come From?
It is completely natural for a beginning commercial real estate investor to feel paralyzed when starting their first deal. But rather than letting fear hold you back, let’s identify the root causes. Once you recognize them, you can actively work toward solutions.
The Top Five Causes of Fear
Through years of mentoring new commercial real estate investors, I have pinpointed the most common fears. Here they are:
- Lack of Experience – You might wonder, “What if I miss something? What if I don’t know what I don’t know?”
- Fear of Losing Money – The idea of putting your savings on the line can be daunting.
- Risk of Mistakes – What happens if you sign a contract and later discover a major repair issue?
- Bad Deals – You’ve heard horror stories of deals going south—what if it happens to you?
- Self-Doubt – “Am I really ready? Can I compete with experienced investors?”
Here’s the lesson in all of this: every successful investor started where you are today. The difference is that they took action in spite of the fear, using proven tools to overcome their doubts.
Tool #1: Educate Yourself to Build Confidence
One of the most effective ways to overcome fear in commercial real estate is through education. Fear often stems from uncertainty—when you don’t fully understand something, it’s easy to feel intimidated. The good news is that knowledge is the antidote to fear. By expanding your understanding of real estate investing, you naturally build confidence.
Why Education Matters
Think about it—whenever you try something new, it’s normal to feel unsure. However, as you learn more and gain experience, the once-daunting task starts to feel more manageable. The same principle applies to commercial real estate investing. The more you understand it, the less intimidating it becomes. Consider two of our students, Tiffany and Ruby. Despite having no prior experience, they transitioned into part-time commercial real estate investing. Their confidence didn’t come from blind risk-taking—it was a result of structured learning and mentorship. Every student in our program begins with four weeks of foundational training before making their first deal. This step-by-step approach ensures they are well-prepared and able to navigate the process with confidence.
Action Steps to Get Started
To begin building your knowledge, focus on learning the basics of commercial real estate:
- Understand key concepts – Start by familiarizing yourself with essential commercial real estate terms such as cash flow, cash-on-cash return, cap rate, and deal analysis
- Read industry resources – My book, Commercial Real Estate for Beginners, provides a clear breakdown of core investing principles.
- Commit to consistent learning – Dedicate just 30 minutes per day to reading, researching, or watching educational videos.
Key Takeaway
Fear is rooted in uncertainty, and uncertainty disappears with knowledge. By taking proactive steps to educate yourself, you replace doubt with clarity, allowing you to move forward with confidence.
Tool #2: Start Small to Minimize Risk
Taking on your first commercial real estate deal can feel overwhelming, especially when the numbers are big and the stakes are high. However, you don’t need to jump into a 50-unit complex right away. Starting small (5 to 24 Units) allows you to minimize risk and gain valuable experience before tackling larger investments.
Why Starting Small Matters
Many beginners hesitate because they fear making a costly mistake. But the truth is, mistakes will happen—it’s part of the learning process. The key is to make mistakes at a manageable scale, where corrections won’t financially cripple you. Take Tiffany and Ruby as an example. Instead of diving into a massive investment, they purchased a small mobile home park for their first deal. The property was within their comfort zone, allowing them to navigate ownership without excessive financial risk. If any mistakes arose, they could afford to fix them.
Action Steps:
Here’s how you can apply this strategy to your first deal:
- Target properties in stable markets and smaller cities: Big markets like Los Angeles or Charlotte can be too expensive for a first-time buyer. Smaller markets often have lower competition and more affordable pricing, making them ideal for beginners.
- Look for C-Class properties: Avoid A-Class and B-Class properties, which typically have higher price points and tighter margins. C-Class properties offer more affordable entry points, reducing financial risk while still generating solid returns.
- Consider turnkey properties: One of our students recently purchased a 12-unit apartment building that was completely turnkey—no repairs needed. He was able to cash flow on day one while minimizing risk.
Key Takeaway
Starting small allows you to build experience without overwhelming financial pressure. This smart approach ensures that, even if mistakes happen, they are manageable. As you gain experience, you’ll be better prepared to take on larger, more complex deals down the road.
Tool #3: Build a Trusted Team
One of the biggest mistakes a beginner can make in commercial real estate is trying to do everything alone. Unlike residential investing, where deals are often simpler, commercial real estate requires qualified assistance. That’s why building a strong team is essential—it minimizes risk, improves decision-making, and sets you up for long-term success.
Key Players in Your Starter Team
As you begin, focus on assembling a core group of professionals who will support you through your first deal:
- A Mentor – Someone with experience who can guide you through challenges.
- A Local Property Manager – They have boots-on-the-ground expertise and can provide critical insights on neighborhood trends, rental rates, and tenant demographics.
- A Lender – Since commercial lending is a lengthy process (often 60 to 70 days to close), securing financing early ensures a smoother transaction.
- A Specialized Real Estate Agent – Your agent should focus on the specific asset class you’re investing in—whether it’s multi-family properties, mobile home parks, or self-storage units.
Action Steps:
Here’s how to take action and build your team:
- Find a mentor – If you’re looking for mentorship, you can learn more about our mentorship program here: Commercial Property Advisors Protege Program .
- Hire a local property manager – They provide real-time insights on market conditions, crime rates, and rental demand—information you can’t find just by searching online.
- Secure a lender – As a beginner, consider working with small banks or credit unions, as they tend to be more flexible with new investors.
- Partner with a loan broker – A loan broker can shop your deal to multiple lenders, helping you secure the best financing terms.
- Choose the right real estate agent – Avoid residential agents, as they specialize in MLS listings, not commercial properties. Instead, find an agent who understands the specific type of investment you’re pursuing.
The Power of a Strong Team
Dean, one of our students, made $1.8 million in three years on a self-storage deal—but he didn’t do it alone.
His success required:
- Property managers to ensure operations ran smoothly
- Attorneys to handle legal matters
- Loan brokers to negotiate financing
- Multiple strategy meetings over three years
In fact, throughout the process, we had over 170 meetings and exchanged more than 300 emails before Dean successfully closed the deal. His results prove that building the right team is essential to winning in commercial real estate.
Key Takeaway
You can’t do this alone, and you shouldn’t. Assembling a trusted team will minimize risk, improve your decision-making, and fast-track your success.
Tool #4: Run Your Numbers to Eliminate Guesswork
A major hurdle for beginners in commercial real estate is uncertainty—that nagging feeling of “Am I making the right decision?” The fear of making mistakes often stems from guesswork and in this industry, guessing can lead to costly errors. That’s why eliminating guesswork is essential.
Why Knowing Your Numbers Matters
By learning how to properly analyze deals—from assessing its cash flow potential to stress-testing worst-case scenarios—you can make data-driven decisions that minimize risk.
How to Remove Guesswork
To help beginners, we’ve created three essential training videos that break down the process into simple, actionable steps:
Underwriting Commercial Deals Made Simple (18 minutes)
- Underwriting is the process of evaluating key aspects of a deal to predict its outcome.
- This video provides a step-by-step breakdown, helping you understand what to look for when assessing a property.
3 Simple Steps to Evaluating Multifamily Property in Five Minutes (14 minutes)
- A fast but thorough approach to analyzing multifamily deals in just five minutes.
- Learn how to quickly identify whether a deal is a good investment or one to walk away from.
Stress Test Your Deal BEFORE You Buy (11 minutes)
- Stress testing is a critical step that helps you anticipate potential risks.
- This video walks you through different financial scenarios so you can prepare for unexpected challenges.
Action Steps
If you want to move past hesitation and start investing with confidence, follow this plan:
- Dedicate time to learning – Set aside just 43 minutes to watch these videos. They will equip you with the skills needed to analyze deals like a pro.
- Practice deal evaluation – After watching, apply what you’ve learned by analyzing properties using real numbers and scenarios.
- Remove the guesswork – Stop making assumptions and start making data-driven decisions based on proven financial principles.
Key Takeaway
Guessing has no place in commercial real estate. By understanding how to properly run your numbers, you gain the ability to eliminate uncertainty and reduce risk.
Tool #5: Take Imperfect Action
Many aspiring investors believe they need to feel 100% ready before taking their first step into commercial real estate. But the truth is you will never feel completely ready. Successful investors understand that action creates momentum. Instead of waiting until every detail is perfect, they take calculated steps, learn from experience, and adjust along the way.
Progress Over Perfection
The most effective way to overcome fear is by moving forward despite the uncertainty. Every successful investor, myself included, had doubts when starting out. The difference is, we took action anyway.
Finding Your Motivation: What Is Your “Why”?
When fear holds you back, it helps to focus on your deeper motivation—your why. For me, my “why” was deeply personal. As a young father, my wife left, and suddenly, it was just me and my son. The court documents were clear: if I failed, I might lose him forever. That reality forced me to push past my fears, take action, and build a secure financial future.
Now, ask yourself: What is your why? What is driving you to step into commercial real estate despite your fears? When your why is stronger than your fear, you’ll find the courage to move forward.
How to Take Your First Step—Safely
Making your first offer can be intimidating. That’s why we’ve designed a structured approach to guide first-time investors through the process. Here’s exactly how we help students overcome fear:
Review Every Deal
- Before submitting an offer, our coaching team carefully reviews the deal.
- We verify the pricing, location, exit strategy, and overall financial viability.
- This ensures that investors aren’t overpaying or making avoidable mistakes.
Built-in Protection Clauses
- Every offer includes four key contract clauses that allow investors to exit the deal safely during due diligence.
- If inspections or financial reviews reveal concerns, students can back out without losing money.
These safeguards ensure that your first step into commercial real estate is both confident and calculated.
Key Takeaway
Perfection is not required but progress is. Taking imperfect action builds momentum, leading to learning, growth, and ultimately, success.
Every Successful Commercial Real Estate Investor Has a Mentor
Success doesn’t come from avoiding fear—it comes from learning to navigate it from those who’ve already achieved success. With the right mentorship and preparation your first commercial deal is absolutely within reach. Get your mentor here: Commercial Property Advisors Protege Program
If you have any comments or questions, text PETER to 833-942-4516.
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