If you’re new to commercial real estate, building a portfolio might sound intimidating—but it doesn’t have to be. With a little planning and a focus on fundamentals, you can make smart, steady progress toward long-term income and growth.

Start With a Clear Goal

Before you look at any property, take a step back and ask yourself what you want out of this. Are you aiming for reliable monthly income? Are you planning to grow your wealth through appreciation over time? Or maybe you’re just looking for a smart way to diversify your investments. Your answer will help guide your decisions moving forward.

Know the Different Property Types

Not all commercial portfolios are the same. Here are a few types beginners often consider:

• Multifamily (5+ units): These feel familiar to many because they’re similar to residential rentals but often more profitable.
• Retail: Think strip centers or standalone buildings leased by stores or restaurants. These can be strong performers but may carry more risk in changing markets.
• Office space: Still relevant, though some areas are seeing shifts due to remote work.
• Industrial or warehouse: A growing segment, especially with the rise of e-commerce. Tenants tend to stay longer and maintenance is often less intensive.

Each category has pros and cons. Your choice will depend on what you’re comfortable managing and what fits your financial goals.

Understand the Basic Numbers

You don’t have to be a math expert, but there are a few key terms you’ll want to understand:

• Cap Rate: This tells you what kind of return you might expect. It’s calculated by dividing the property’s net income by the purchase price.
• NOI (Net Operating Income): The income left after expenses, not counting any loan payments.
• DSCR (Debt Service Coverage Ratio): Lenders use this to see if a property brings in enough income to cover the loan.
• LTV (Loan-to-Value): Shows how much of the purchase you’re financing.

These numbers help you compare properties and understand how the deal might perform.

Start Small, Then Grow

Most experienced investors didn’t start with a big shopping center or office park. Many began with something manageable—like a small multifamily or retail unit—then reinvested their profits over time. Don’t feel like you have to rush. Get comfortable with one deal before you move to the next.

Build a Good Team

You don’t have to know everything yourself—but you do need people around you who know their stuff. That usually includes:

• A commercial real estate broker
• A lender who understands investment properties
• An attorney to help with contracts and leases
• A CPA for tax guidance
• A property manager (if you don’t want to be hands-on)

Having the right help can save you from costly mistakes and make the process smoother.

Final Thoughts

Building a commercial portfolio is like anything else—start with the basics, take your time, and be consistent. Over the years, the right properties can build steady income and real long-term value.

If you’re thinking about taking that first step, especially in the Amarillo area, our team at Wellborn Real Estate would be glad to help you explore the right opportunities.

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as financial, legal, or real estate advice. Every real estate transaction is unique, and readers are encouraged to seek professional advice tailored to their individual circumstances. We strive to keep the information accurate and up-to-date, but we make no warranties or guarantees regarding the completeness, accuracy, or reliability of the content. For specific guidance, please consult a licensed real estate professional or legal advisor.