I have been a real estate investor for 24 years. I started with single family homes and remained focused there for most of that time. Sure, there was the occaisonal larger deal, but SFH was where I was comfortable.

About five years ago, I started adding “a little commercial” to the mix. Not directly, mostly by partnering with a group of other investors. Then in early 2006, I started reading as much about commercial projects as I could. I started talking to investors who specialized in commercial projects. My intention was to slowly add to the commercial side. I had the plan and with the economic conditions on the horizon I didn’t anticipate selling the non-commercial holdings, just adding commercial to the mix.

Then in May of 2006 events changed my focus and it was not until late 2007 I had the time or motivation to start down the commercial path again. The non-commercial side was humming along nicely and I was able to focus my attention on the commercial side.

I did it quietly because, well, it was out of my comfort zone.

Now, the non-commercial holdings are being realigned. The complex holding structure is being flattened and once complete, I anticipate selling most of my shares to the other shareholders. The last four years have proven the residential side runs just fine without my day to day involvement and the funds freed up from the transactions, as they occur, will be rolled into the commercial side through 1031 exchanges.

I now have a system in place to do the same thing with the commercial side I did with residential over the last 24 years. It is going to be fun.