Input Wanted: Career as a Commercial "Wholesaler"

[David Fritch]

Hello everybody. I'm looking for advice and contacts regarding my desire to make a career change.

Background

I've been working as a construction laborer intermittent with doing real estate investing and other business projects for several years. I currently have a break in employment and a few months that I could make a transition to something real estate related  that I would really enjoy. Obviously I need to generate some income soon to make that viable but the combination wife's income, frugal lifestyle, savings and past investments provides a little runway for me to make that happen.

Goal

To create passive and active income through prospecting and structuring commercial real estate deals in my local market. To utilize networking and relationship building to 1) find and secure those deals as well as 2) attract & coordinate partners with the resources, skill sets and experience to create well managed assets of high intrinsic values.

Assets
I have strong people skills. I build rapport quickly. I have done well at sales and marketing in my own businesses. Especially outside sales.I can learn complex things extremely quickly when it's something I need to know to accomplish what I want.

I can think on the fly and have an instinct for opportunity. I have the ability to improvise and am good at listening, creative dealmaking and creative problem solving. I have always done well with public speaking and teaching.Market- Additionally my local market is strong and has abundant opportunities to acquire and optimize properties for success. And although I wouldn't say that I'm "well connected" as in I run with rich people but I am very familiar with the market and well networked here.

Needs

I've been ruminating on this plan for a year and a half. I can almost see pulling this off by myself. But realistically there's too much there for me to handle without being overwhelmed. I need the culture and structure of working with some type of partner/mentor or even an organization.

Beyond that I will benefit from help on detailed analysis, building presentations etc. Basically lots of things that are task oriented and done on computers. I can get very overwhelmed by tasks and I see others who thrive there.

For these reasons I will succeed and be happier if I have a "boss" or partners. I really want that. That’s why I framed the post title as a career change rather than a new business venture.

Ask

I need your advice on how to proceed and maybe an introduction.

Knowing my end goal I'm not sure of which path to take there. I'm willing to "pay my dues" while I learn the hard and soft skills, build my network and gain the confidence/experience.

Here is what I see as some options:

Should I pursue becoming a licensed commercial realtor and try to find a broker who's willing to be a little creative? Should I find a company out of area who puts similar deals together and become their boots on the ground here? Should I find a mentor who will coach me and help me with the “paperwork” side of the business in exchange for a piece of the action?

Thanks for any help you can provide! 

Sincerly, 

Dave 

P.S. I'm putting myself out there and being tranparent with you all. I had thought to DM just a few of you but I believe by putting it out to everyone how it really is to me I will attract the right people and advice.

Notes: A few items about my strategy and philosophy

- I am pretty set on commercial. Not interested in residential. Maybe some land acquisition for development I do have some applicable experience and my local market has an extreme shortage of lots.

- I can work my market and a few other markets within 90 minutes of me. Close to 1 million people in that area. I believe it’s ripe for acquisitions and generational transfer from those aging-out and wanting to retire.

- Investment money is not an issue. I have had a good track record of deals and rapport with several people. Access to investors will grow faster than investment opportunities at least at first.

-I think about investing in a little different way. than most people. I am fascinated with partnering and understanding the art and science of it. Partnering is not for everyone but it’s for me, I believe if you get a great property and connect the right team it will be successful despite any amount of opposition. That is why I’m focused continually on prospecting partners as well properties. I believe that by doing that I can add value to highest level my skills allow.

-Out of the pool of local investors (I run a REIA here) I have identified 10 A-level "gamers" which I define as people I would love to work with based on skill sets, personal chemistry and track record. Those skill sets include; development, redevelopment, project management, marketing, deal structure, tax strategy, finance, negotiating, powerful relationships, borrowing power, leadership and efficient property management. Track record and expertise in retail/office, self storage, subdivision development. I don't have anyone in apartments of MFH parks that is really at high level. I know that they have other A and AA contacts that I've heard about can access when I have a better track record and deals to offer. But even now I can combine these folks and quite a number of "B-level" players in a number of ways depending on what the deal requires. They all have money to throw in, depending on when you catch them.

-A deal won’t always want more active partners. If we need silent partners to just bring money I have access to those as well.

-It would seem that all the pieces are there. I already have a couple multi-million dollar properties in my sights who’s owners, I believe, are primed for an exit but have not listed. One for sure is interested in owner carried financing. But I’m not pulling the trigger. There is a hesitancy. What I lack is the experience and intimate knowledge of the industry and the dealmaking process. At my level of experience, putting a deal together is all about understanding the property in a real and financial sense then mentally making models of what the deal could be then finding the needs and wants of the seller and customizing those to find something that works for both sides. I need an expert to help me do this process with speed and precision and be available to advise when I get over my head. With my land flipping, things were casual. I even closed and filed my own deals, all cash. This is the opposite end of the risk spectrum. I’m going to need help, a lot at first and then tapering off for the next few years. It’s too much for me to get by reading a book or blog.

- I’ll utilize all the acquisition strategies; traditional finance, seller carried notes, lease/option or combination of them.

-My acquisition strategies initially are; very targeted and personal direct mail, expired listings, driving for dollars etc, but mostly networking. I will build my network with property owners, investors, self directed retirement facilitators, brokers, wealth managers, 1031 exchange facilitators, proper managers, business owners, city and county officials, probate/bankruptcy/divorce/tax/RE attorneys. I will essentially become a connection point or platform to get commercial sales done fairly quickly, quietly and reliably, basically a Rolodex powered option to traditional brokers built on rapport, trust and proven results.