Wholesaling Commercial Real Estate

[Robert Brock]

Hi my name is Robert Brock and I am new to the Tampa Bay Area. I'm looking to get started in wholesaling commercial real estate. Does anyone have any advice or suggestions they can give a beginner such as myself?  Any help is greatly appreciated. 

Thanks- Robert

[Henry Clark]

OP

If you're doing Flex let's do a preliminary wholesale on me being the Buyer and also the seller.  Don't think of knowing or getting all of the answers to wholesale.  This will be a straight up listed property and a purchase just to see the process on a Commercial/Industrial property.  Then think through it from a Wholesaler standpoint.  The chances of you getting a property Wholesaling without it going through a commercial Agent listing is very slim.

1.  Flex property listed for $2,000,000 in Tampa Bay.

2.  Zoning is C3 whatever that means in Tampa Bay. You have to figure that out, relative to the potential buyers needs.

3.  It has been listed for 3 months versus say 2 years.  Means seller has not truly had the market do price discovery.

4.  A Commercial realtor is handling the deal.  And the Seller runs things through their lawyer.

5.  Property is on 2 acres.  Has 40,000 sq ft, with 8 bays of 5,000 sq ft.  Is Pre-1970.

6. Tenants are all market rate. 5 year leases. 3 are NNN and 2 are NN. They have remaining years on contract- 1 is 5 years, 2 are 3 years, 2 are 1 year left. All are local except for one is a national brand auto supply store, using this for a warehouse. Rest are yard/snow plow, plumber, electrician, hot rod enthusiast, and a regional Power drink distributor.

7.  You have to make a written offer.  I'm going to ask for either a $50,000 downpayment or a source of funds letter from your lender to cover this amount.

8.  You're going to negotiate for 30 days due diligence, 30 days to finance.  I'm coming back at 30 days due diligence and 15 days to finance.

9.  Do you have a due diligence checklist?

10.  Do you have the downpayment or funding letter?

11.  You just signed the offer letter and are on the clock.  You have to find a customer who wants this type of property.  They will want to also do due diligence.  The longer you wait to find the customer, the less time they have to do due diligence.  Plus, they need the 30 and then the 15 days to get their financing in order.

12.  Somewhere in the above you need to work in either Title search or Title insurance.

13.  This is a Pre-1970 property.  Any EPA issues or studies required for your financing?

14.  Any grandfathered items.

Forget whether you know the above.  It's part of the learning curve.  So you need to develop your checklists before you bring your first deal.  30 days is a very short time to execute and learn.

etc etc.

Use the above to start the development process for your wholesaling efforts.