Wholesaling Commercial Real Estate in Los Angeles

[Edward Caballero]

I'm an active multi-family commercial real estate agent here in LA for the past 9 years and I have gotten into heated discussions with smart people regarding this topic. My question (more like frustration 😤) is around why it's practically impossible to build a successful and scaleable system around wholesaling commercial property here in LA. I've seen guys in my office have success wholesaling residential around the country and I just get frustrated because it doesn't translate into Commercial. Then they tell me that they could do it in commercial if they wanted to but haven't tried (and thats where the heated discussion takes place because everyone keeps saying that its possible in theory but nobody is doing it successfully) I feel like I'm missing something.

I dont mean to sound like a pessimist or a jerk, I actually want to be proven wrong which is why I'm posting this.

[Will Barnard]

Well, here are my thoughts. Most commercial properties are owned by investors and investors don't get to that point in their career by being ignorant or foolish. Investors are the buyers and sellers of these properties and therefore would likely not be foolish enough to lock up their property to some middle man with exit clauses to the contract. They want to deal with the actual investor buyer and agents listing their property will bring it maximum exposure for that buyer. So these property owners are likely not going to be interested in a wholesaler with an assignment and weasel clause locking up their deal.

Could it be done on a 4 plex or something small, certainly, but few are far between would be my guess.