I always think it’s interesting when people feel as though they are proficient residential real estate investors that they can then jump into investing in commercial real estate. I look at each of these as two completely different businesses. There are some similarities, but there are more differences than similarities. A significant factor to consider when deciding between the two is the amount of capital you are willing to deploy into the investment. Generally, commercial real estate investments range in the millions of dollars whereas residential investments tend to range in the thousands of dollars. Risk is also a key component to consider. Historically we’ve seen that finding someone a home is easier than filling up an office or retail space. In commercial investing the risk tends to be higher because the periods of being without a tenant are longer and more costly than in residential real estate. Although the cash-flow involved in commercial investing is greater, there is a significant more financial risk in commercial investing rather than investing in residential real estate.