Wholesaling commercial real estate

[Account Closed]

Hello BP, Does anyone have any experience wholesaling commercial properties? How different is it then wholesaling residential real estate? How are you marketing?

[Don Konipol]

Originally posted by @Account Closed:

Hello BP,

Does anyone have any experience wholesaling commercial properties?

How different is it then wholesaling residential real estate?

How are you marketing?

 While the legal theories are the same, the practical applications are totally different

1. On the buy side you are dealing with professional investors or business owners instead of home owners.  More sophistication, less emotion, more market awareness

2. Brokers are more sophisticated, more likely to be interested in representing even property in need of rehab

3. Not an established market of rehabbers to sell to as there is in residential property

4. Value based on many more variables thus greater and deeper knowledge is required

5. A much greater understanding of finance, investment, market analysis, etc is required

6. Most sales are through brokers, if you don't actually own the property the sale of an option is difficult

7. There are a few commercial property buyers in every area ready to pay cash for a bargain. You will need to identify them in advance.  However, the bargains are more difficult to identify, the market less defined, the valuations less certain, and the transactions more difficult to conclude

Big money to be made because of lack of competition, deal size and value uncertainty. However, to be successful one needs a much greater degree of knowledge, experience and intelligence.