Hello Everybody. Interested in learning about wholesaling and commercial real estate.
Stafford, VA · Member since 2010 · 2 posts · 0 votes
Hello.
My name is Rob and I am from Stafford Va. I have been absorbing anything and every thing about real estate for about three months now. I know that I have found what I am supposed to do with my life. It has become an obsession. I am looking for very creative ways to structure deals and learn about wholesaling and commercial real estate. I am also looking for ways to hook up with investors and create a solid buyers list.
Hi, Rob, first welcome to BP!
Many of the transactions and strategies used in residential properties really don't apply in commercial properties. First of all, the turn over of commercial properties, not just apartments, but wharehouses, office, strip centers, etc. are much longer than a residence. I've been doing a purchase for three months and it closes (hopefully, lol) next week and I've been at it close to 40 years. I can buy and sell a residence in four days, so unless you have some deep pockets, better stick to residential.
I know you can look for an option deal, but mosts sellers in commercial properties won't even talk to you about an option, but somewhere in the country it's probably being done right now, but probably not in your town!.
An environmental study and an appraisal will set you back 7 to 10K just to seek financing!
Seller financed deals will require skin in the game. When dealing in commercial properties, you are not dealing with mom and pop, you're dealing with sophisticated business people and if they aren't they hire people who are. If you see a seller financed deal with little down, it's probably way over priced and they are looking for cash flow from you until you default and then they will do it again to another newbie commercial buyer.
You can not study your way into commercial real estate, it has to be done as well. You might check out a thread titled "commercial- buy the property and the business" I think. That is just an example of what you can get into. I had to deal with two attroneys, a bank, a business owner/seller, a commercial lender, the SBA, building inspectors, maintenance guys, title people and getting oil and gas royalties cleared up, existing tenants and a possible issue of an easement by adverse possession.
Hope this quick overview explains why you don't read about commercial deals out of guru book or other sources and then try to put a contract on a commercial property....getting a contract is the easy part!
As Charles suggested, do residential properties until you have a few years behind you. It's best to work with someone in commercial properties before you dive in. Don't give up the interest, but this does not come overnight. I'm thinking you have plenty of time to get into commercial deals, first things first. Good luck, Bill
Glad to meet you Rob.
Sounds like you want to wholesale commercial property. You may want to look at residential property first and then try commercial.
There is much more to know and be aware of with a commercial deal.
You may want to checkout the wholesale and commercial real estate forums.
Hi, Rob, first welcome to BP!
Many of the transactions and strategies used in residential properties really don't apply in commercial properties. First of all, the turn over of commercial properties, not just apartments, but wharehouses, office, strip centers, etc. are much longer than a residence. I've been doing a purchase for three months and it closes (hopefully, lol) next week and I've been at it close to 40 years. I can buy and sell a residence in four days, so unless you have some deep pockets, better stick to residential.
I know you can look for an option deal, but mosts sellers in commercial properties won't even talk to you about an option, but somewhere in the country it's probably being done right now, but probably not in your town!.
An environmental study and an appraisal will set you back 7 to 10K just to seek financing!
Seller financed deals will require skin in the game. When dealing in commercial properties, you are not dealing with mom and pop, you're dealing with sophisticated business people and if they aren't they hire people who are. If you see a seller financed deal with little down, it's probably way over priced and they are looking for cash flow from you until you default and then they will do it again to another newbie commercial buyer.
You can not study your way into commercial real estate, it has to be done as well. You might check out a thread titled "commercial- buy the property and the business" I think. That is just an example of what you can get into. I had to deal with two attroneys, a bank, a business owner/seller, a commercial lender, the SBA, building inspectors, maintenance guys, title people and getting oil and gas royalties cleared up, existing tenants and a possible issue of an easement by adverse possession.
Hope this quick overview explains why you don't read about commercial deals out of guru book or other sources and then try to put a contract on a commercial property....getting a contract is the easy part!
As Charles suggested, do residential properties until you have a few years behind you. It's best to work with someone in commercial properties before you dive in. Don't give up the interest, but this does not come overnight. I'm thinking you have plenty of time to get into commercial deals, first things first. Good luck, Bill
This was a great post done by the financexaminer(which was done on my birthday by the way) This is the first time that I've read about what it really takes to get into commercial real estate and all the barriers you will have to overcome for a deal to close. Everyone else makes it sound so easy and trying to sell you information at the same time. Thank you very much for the insight.