Hackettstown, NJ · Member since 2014 · 16 posts · 10 votes
hello all
I've been successful at wholesaling residential properties but I'm not satisfied. I want to start wholesaling apartments because it seems to give off much more profit then residential. I have financial goals I'd like to reach and would love to get a deal closed within the next 2 months. Can anyone please advice on what I should know, where to find deals and ultimately how to wholesale my first apartment building.
Glens Falls, NY · Member since 2015 · 50 posts · 17 votes
7y
@Matthew Bruce I realize this was a few years ago, but I happen to come across your post and I cannot believe how negative some people are.
I just sold 25 units using the wholesaling approach, so it can indeed be done, and often. If you haven’t already, I would check out Sean Terry’s YouTube video with Bob Diamond on wholesaling apartments. It’s a fantastic resource.
I’m in NY so a lot of investors are itching to get out of here and retire to somewhere warm like FL. I’d imagine it to be the same case in NJ. This creates amazing opportunities for people like you and I to create deals for our buyers. Also, to wholesale an apartment building is not the same in that it necessarily has to be 70% of market value, as long as it’s at or below the market cap rate and the numbers make sense.
You can wholesale anything. Shopping malls, offices, apartment buildings, etc. Will it be easy? Well... no. At least not at first but the pay off is extremely worth it. Like I said big timers like Sean Terry and Bob Diamond do it all the time and teach others how to do it as well. I hope that negative comments don’t discourage anyone who reads this post from pursuing their goals. If someone is telling you that it cannot be done, it may very well be because they have not done so themselves.
Investor · Dyersburg, TN · Member since 2015 · 320 posts · 100 votes
11y
What we are saying is that it is HIGHLY unlikely that you will be successful wholesaling Apts. You should stick with SFH, duplexes etc...If you go for it, best of luck.
Real Estate Investor · Lawrenceville, GA · Member since 2015 · 6 posts · 0 votes
11y
Matt, I have access to large Wholesale Commercial Property's for Sale in CA. When I say large I mean $250mill projects +. Example: 250 Units + Condo project with rent roll. Look my problem has been people/groups wasting my time with no money. Inbox me and we can talk about great opportunities for us in the Ca area.
Hackettstown, NJ · Member since 2014 · 16 posts · 10 votes
11y
Kyle first off, just because you may have had negative experiences does not mean you try and discourage someone else from attempting it. Whatever your case may be, I will be successful with apartments as I've already started but I figured I'd reach out to gain a word or two and I am not pleased with the responses. Please do me a favor and keep your negative thoughts to yourself.
Scottsdale, AZ · Member since 2014 · 659 posts · 536 votes
11y
You ask for advice and someone gives their opinion. Then you slam them...
Well I happen to agree that wholesaling apartments will be tough.
The market these days requires short due diligence periods and large amounts of earnest money to tie deals up. At least any deal that someone is expecting to really sell. There is no way that I would allow one of my properties to be tied up in contract by someone that cannot show me the money that they are going to close with.
On the other hand, if you can find that class B with a real 10 cap, you could sell that in an instant.
Laurel, MD · Member since 2015 · 12 posts · 1 vote
11y
If there is a will there is a way. I am also selling an apartment complex and I recommend finding who is doing it and connect with them. The biggest problem I have encountered is sellers remorse. They like the idea of selling it, then out of nowhere they want to keep it. Just something to be aware of. @Matthew Bruce
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
11y
As someone who deals with apartment investors everyday, I don't see how it could be done on a consistent basis. They typically have a strong understanding of what their property is worth and how to market it to other investors with the ability to close the deal. They are also rarely in a desperate situation yet have equity that could provide a margin. I don't see the value that a wholesaler could bring to the equation in an apartment sale. You are typically dealing with a savvy seller and a savvy buyer. It would take a unique situation for a wholesaler to get between the two. In my part of the country, it is not a viable business plan.
Glens Falls, NY · Member since 2015 · 50 posts · 17 votes
7y
@Matthew Bruce I realize this was a few years ago, but I happen to come across your post and I cannot believe how negative some people are.
I just sold 25 units using the wholesaling approach, so it can indeed be done, and often. If you haven’t already, I would check out Sean Terry’s YouTube video with Bob Diamond on wholesaling apartments. It’s a fantastic resource.
I’m in NY so a lot of investors are itching to get out of here and retire to somewhere warm like FL. I’d imagine it to be the same case in NJ. This creates amazing opportunities for people like you and I to create deals for our buyers. Also, to wholesale an apartment building is not the same in that it necessarily has to be 70% of market value, as long as it’s at or below the market cap rate and the numbers make sense.
You can wholesale anything. Shopping malls, offices, apartment buildings, etc. Will it be easy? Well... no. At least not at first but the pay off is extremely worth it. Like I said big timers like Sean Terry and Bob Diamond do it all the time and teach others how to do it as well. I hope that negative comments don’t discourage anyone who reads this post from pursuing their goals. If someone is telling you that it cannot be done, it may very well be because they have not done so themselves.
Hackettstown, NJ · Member since 2014 · 16 posts · 10 votes
7y
@Desiny Smith I am currently working on a single fam in NY. Would love to connect with you.
Truly appreciate the words. Not sure what people think when they show public discouragement. Who am I to block what someone else is destined to do? Also, When I posted this yes, I was looking for advice but who wants to hear negativity? I would not classify it as "slamming" but just just "checking" him as we all need encouragement and motivation not the opposite. As @Morgan Hunt stated, "If there is a will, there is a way."
There are thousands of people wholesaling every kind of building worldwide. Anyways, I appreciate the feed back from everyone and looking forward to connecting with all who are interested in collaborations and discussions on how to be the most efficient investor you can be!
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
7y
@Matthew Bruce@Desiny SmithOh wow, isn't it interesting that with a bit of persistence anything can be done?!
I love the way this came back full circle after 4 years even though it wasn't you Matthew, Desiny is shining a new light on the possibility of doing things.
Investor · Los Angeles, CA · Member since 2015 · 213 posts · 162 votes
7y
This is an old post, but in general it's not as simple as wholesaling SFR. There's a podcast on @Michael Blank's platform where he interviews a wholesaler who happened to do 1 apartment deal. Made a killing but would not do it again.
I recommend you listen to that. And no one is being negative, they are painting a realistic picture of the outlook for you. We encourage everyone to do the things that are the best use of their time to get to the end goal quicker - financial freedom!. Attempting to get in the middle of 2 sophisticated parties with a competitive middle man already in the market (commercial brokers) is tough. Commercial brokers are not the same as (most, not all) residential brokers. They are typically more like good residential brokers in that they know their stuff very well and are highly connected.
If you want to "wholesale" apartments, why don't you just become an apartment broker? I really don't see the difference and more end users (sellers & buyers) will be responsive. There are plenty of licensed brokers who specialize in off-market product, so they are arguably wholesalers, but they have the reputation and backing of the shop they have their license at. Get your license, do the prospecting activities, and find the buyers. Same job, different reputation.
My $0.02. Take it for what its worth. Just an opinion.
This is not my first deal like this, but it is my first student housing deal. What I learned is that student housing doesn't operate like multi-family, even thought technically it is. 2 different animals. Also deals this size take awhile to get to closing & like anything else the wrong clause or statement in the contract will kill the deal. There can be tons of negotiation between all parties.
How do I find my deals ?? Pocket listings from brokers, that know I have buyers, & that they can close if they enter into contract. I have dozens of brokers/agents on my buyer's list. I didn't ask for these deals nor did I seek them out, they just fell into my lap.
In fact I'm sitting on two apartment bldgs in DC, that I'm vetting the deal, to see if it is worth sending to my buyers.
Glens Falls, NY · Member since 2015 · 50 posts · 17 votes
7y
@James Green that’s awesome! I love hearing that. How long have you been doing this? I’m currently working on expanding my buyers list for commercial properties. Any tips/advice?
Wholesaler · Waldorf, MD · Member since 2015 · 459 posts · 245 votes
6y
@Desiny Smith I've been wholesaling for 4 years, with a full-time gig. I don't have any special tips on finding commercial buyers. I just add to my buyer's list and commercial buyers identify themselves. I would go to every REI meeting in your area and network. Post on craigslist that you are looking for commercial cash buyers for off-market properties, network with brokers., etc.
Matthew: Your post was 9 years ago! How did you end up doing? Like you, I have done wholesaling of SF houses, and am now thinking about apartment complexes.
Wholesaler · Portsmouth NH · Member since 2019 · 206 posts · 94 votes
4mo
Best data source to find apartment data I have found is Costar or Reonomy! Pull the data from there and start doing the marketing channel that you mastered in residential wholesaling.
I've found direct mail to be the best with these types of sellers as you're speaking to a different seller. They more care about speed and certainty, so credibility goes a long way.