Is wholesaling commercial property in 45 Due Diligence realistic?

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Is wholesaling commercial property in 45 Due Diligence realistic?

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Decatur, GA · Member since 2018 · 11 posts · 1 vote

I have seen many youtube videos regarding wholesaling commercial property within the 45 day due diligence period usually vacant NNN possibilities. Question to brokers/agents? Do most brokers accept wholesale offers from investors? Do brokers accept letters of intent? Is earnest money always required on purchase contracts? And most importantly, in your experience, does national tenants move that swiftly within the seller's 45 day due diligence period and offer their LOI to lease the property since they must do their due diligence as well? I would love to get as much feedback from the experts as possible to form a realistic strategy going forward.

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Brian Spatz
Fair Lawn, NJ · Member since 2015 · 32 posts · 10 votes
8y
@Lodina Cokley when @Jay Hinrichs says unsophisticated don't read it as he's saying YOU are unsophicated. his point (and a good one) is that commercial properties are generally owned (or represented by) more knowledgable owner/investor/agents who will spot a wholesaler from a mile away. like both folks before me stated, they'll require a POF and scrutinize that even before reviewing a LOI. Unrepresented residential homeowners are generally more flexible with the terms because they don't understand the process or right questions to ask to check it's actually you making the purchase. Whatever you do (and I'm not implying you will) just don't fib, although I'm sure you'll be honorable with the process.
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  • Joel OwensBusiness Member
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    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    8y

    National tenants can take sometimes up to 6 months or more to lease execution. Regional's move a little faster and local tenants tend to move the fastest over 2 to 3 months.

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    OP
    Decatur, GA · Member since 2018 · 11 posts · 1 vote
    8y

    Thanks Joel, your response is extremely helpful going forward.

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  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
    8y

    why not find prospective tenants and their parameters required before finding the property to wholesale?

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y
    Not realistic. More importantly, commercial owner’s and brokers aren’t likely to fall into the “not knowing you are a wholesaler who can’t buy trap”. They’ll be requiring financials up front.
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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Wayne Brooks:

    Not realistic. More importantly, commercial owner’s and brokers aren’t likely to fall into the “not knowing you are a wholesaler who can’t buy trap”. They’ll be requiring financials up front.

    as wayne states unless your being paid for site aquasition buy a company.. ( I did this in the 80s for a big syndicator) this is a complete waste of your time and energy.. folks that own and buy these are looking to do business with commercial brokers like Joel above you will have a hard time getting past first base on this one.

    stick to SFR's and unsophisticated sellers and buyers.. that's were wholesalers play the best.

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    OP
    Decatur, GA · Member since 2018 · 11 posts · 1 vote
    8y

    Thanks Todd. This is definitely an option I am looking into but I am curious about the norms of the process.

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    OP
    Decatur, GA · Member since 2018 · 11 posts · 1 vote
    8y

    Hi Wayne, thanks for your response. I'm not a wholesaler. I'm an individual learning about all prospects of real estate investing. So far, I find that wholesalers, brokers and agents alike all been able to do well some better than others. From my life experience, the one thing that you can always leverage is Knowledge. 

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    OP
    Decatur, GA · Member since 2018 · 11 posts · 1 vote
    8y

    Hi Jay, I wouldn't agree with unsophisticated but would consider it creative investing of which mostly all investors are. For me, this is not about wholesalers against brokers and who does it best. I'm about learning the processes and leveraging my own knowledge. The pros and cons of learning to invest is all valuable to me. I appreciate your feedback.

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  • Brian Spatz
    Fair Lawn, NJ · Member since 2015 · 32 posts · 10 votes
    8y
    @Lodina Cokley when @Jay Hinrichs says unsophisticated don't read it as he's saying YOU are unsophicated. his point (and a good one) is that commercial properties are generally owned (or represented by) more knowledgable owner/investor/agents who will spot a wholesaler from a mile away. like both folks before me stated, they'll require a POF and scrutinize that even before reviewing a LOI. Unrepresented residential homeowners are generally more flexible with the terms because they don't understand the process or right questions to ask to check it's actually you making the purchase. Whatever you do (and I'm not implying you will) just don't fib, although I'm sure you'll be honorable with the process.
    2Reply
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