How Much Money Do I Need to Start Investing in Commercial Real Estate?

We frequently have conversations where people tell us, “I want to start investing in commercial real estate, but I’m not sure if I have the capital.”

How Much Money Do I Need to Start Investing in Commercial Real Estate?

We frequently have conversations where people tell us, “I want to start investing in commercial real estate, but I’m not sure if I have the capital.”

It’s true that investing in commercial real estate typically requires more capital than residential real estate, because the properties are generally larger and more expensive.

These types of investments also tend to require more due diligence — like financial analysis, property inspections, and tenant evaluations — which can add to the investment costs.

That being said, investing in commercial real estate can offer the potential for much higher returns than residential investments. Because of the higher amount of capital and experience required, many individuals will choose to invest with a trusted sponsor who takes care of all back-end operations.

Choose Your Investment Vehicle

Keep in mind that different types of commercial real estate investments will have different investment minimums, as well as different benefits and drawbacks. These investment vehicles include:

Direct Ownership: This involves purchasing a commercial property outright or with partners and managing the property yourself or hiring a property management company.

Real Estate Investment Trusts: A REIT is a publicly traded company that owns and manages income-generating real estate assets. Investors can buy shares in the REIT to gain exposure to commercial real estate without owning the underlying properties.

Private Equity Funds: Private equity funds pool capital from multiple investors to acquire and manage commercial properties. These funds may have specific investment strategies, such as value-add or opportunistic investing. They may also have a minimum investment requirement.

Syndication: Real estate syndication involves pooling capital from multiple investors to acquire and manage a commercial property. A sponsor, or lead investor, typically manages the property on behalf of the syndicate.

Real Estate Crowdfunding: Crowdfunding platforms allow individual investors to invest in commercial real estate projects alongside other investors. These platforms typically have lower minimum investment requirements than other vehicles.

Joint Ventures: Joint ventures involve partnering with other investors or real estate firms to acquire and manage commercial properties. Each partner contributes capital and expertise to the venture.

As you’re choosing your investment vehicle, make sure to consider factors beyond just the investment minimum. The best vehicle for you will depend on a variety of factors, including your risk tolerance and your specific investment goals.

Investment Requirements for a Real Estate Syndication

Many investors are drawn to real estate syndication because it allows them to have equity in real estate without the added hassle of sourcing deals or managing the properties.

The amount of money required to invest in a real estate syndication will depend on the specific firm you invest with and the details of the specific deal. Some firms have minimum investment requirements of $50,000, while others have minimums as high as $1 million or more.

Although it depends on the specific syndicator and investment opportunity, many commercial real estate syndicators also require investors to be accredited.

Accredited investors are individuals with an annual income of at least $200,000 ($300,000 for joint income) for the past two years or a net worth of at least $1 million, excluding their primary residence, according to the Securities and Exchange Commission.

Want to find out if you’re accredited?

Before investing in any syndication, it’s helpful to consult with a financial advisor or attorney who can help you determine the appropriate strategy for your unique circumstances. You should also make sure to consider the fees and expenses associated with any investment, such as management fees and transaction costs.

At Excelsior Capital, our investment minimum is $50,000 per offering. If you’re interested in learning more about our investment opportunities, please fill out this form to get in touch.

Previous Articles


The Ultimate Guide to Commercial Real Estate Investing

Learn everything you need to know to assess the benefits of a commercial real estate investment and make the best decisions to get started.


Benefits of Owning Commercial Property over Residential

While both types of real estate investments have their benefits, investing in CRE can be more advantageous for several reasons.

The Revolution That Wasn’t

How has technology impacted modern finance and created an asymmetrical relationship between Wall Street and individual investors? In this episode, we speak with Spencer Jakab, the author of The Revolution That Wasn’t and editor of the Wall Street Journal’s Heard on the Street column.

Tax Savings Secrets: How Cost Segregation Analysis Can Save You Money

How can cost segregation analysis help real estate investors maximize their returns? In this episode, John Hanning explores the potential benefits of cost recovery studies and depreciation.

What is a Family Owner’s Manual and Do I Need One?

It’s time to make sure you and your family are set up to continue success for generations to come. Today, Josh Kanter shares his journey transitioning from practice as a transactional attorney to reorganizing his family’s activities under a single-family office.

Key Characteristics of High-Performing Family Offices

Are family offices becoming more popular? In this episode, Robert Daugherty dives into the importance of having a functional family office, and the role of the Chief Learning Officer in it.

Talking to Your Parents about Their Finances

As your parents age, you may find that you want or need to broach the often-difficult subject of finances. In this episode, Cameron Huddleston, an award-winning personal finance journalist, discusses how to have meaningful conversations with your parents about their finances.

Pros, Cons, and Features of Robo-Advisors for the Wealthy

Learn how to amass wealth – the right way, for you. In this episode, Barbara Friedberg, a former portfolio manager and university investments and finance instructor, delves into how robo-advisors have revolutionized traditional financial advisory services.

The Founder’s Story: From Recovering Attorney to Real Estate Investor

This episode of the Capital Club podcast is your chance to get a behind-the-scenes look at the life and story of Brian. He talks about the challenges he faced along the way, his successes and failures, how networking helped him find his current path, and what he’s learned about business development.

Excelsior Capital

A real estate private equity firm that owns and operates high quality multi-tenant office assets in emerging secondary markets.

Interested in learning more about Excelsior's investment opportunities?

Excelsior Capital

104 Woodmont Blvd, Suite 120
Nashville, TN 37205



Disclaimer: Under no circumstances should any information presented on this website be construed as an offer to sell, or solicitation of an offer to purchase any securities or other investments. This website does not contain the information that an investor should consider or evaluate to make a potential investment. Other materials related to investments in entities managed by Excelsior Capital are not available to the general public.