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.
This is a different breed of investor.
Is there even a possibility of this happening? lol.
what are you guys saying?
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.
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.
Kyle Penland, I have some great Residential deals here in Ga as well. The properties I have come with instant Cash-Flow opportunity.
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.
What price range, number of units did you have in mind?
Well I have a buyer who is looking for 30-70 units class b, 10% cap rate, 90% occupied. Any price. This is for NJ area
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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.
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
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.
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