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What is the wholesale level?

Updated: Apr 25

Wholesale is the process of finding commercial ownership, obtaining it under contract at a high price, and then selling your position in the business for a "wholesale charge" where your buyer's total price adds to be a very good deal.

This is a great way to get started because you will refine the essential skills of finding and analyzing properties without buying or managing anything.

An essential key to the wholesale sale of commercial real estate is to get the property under contract. In addition, make sure that all the properties you expect to have met the criteria.

If you discover that your purchase price is so high that after adding your fees, an investor will no longer have a profit margin, then drop the transaction, so you're not locking up a vendor's property, which won't work like a wholesale market.

The remaining offers are divided into two subfolders: A file (the best offers) is for your VIP buyers, while the other (yet very good offers) is for the public.

The best of these is originally sent to your list of VIP buyers, people you know and have done business with previously. After three or four days, your buyers have picked up most of them.

All that remains is added to the properties in the other sub-folder, which you then commercialize as wholesale opportunities to the public.

Since you're not likely to work for a large mutual fund, here's how to use this same concept: Obtain commercial property under contract and sell it in bulk to other investors. You may have heard about investors who wholesale single-family houses to a final buyer to make money.

Therefore, Real estate wholesaling is a strategy in which a wholesaler obtains a contract on a property with its seller, and in turn, sells the contract to an investor. Wholesalers start by looking for a discounted property to put under contract. Wholesalers will often look for distressed properties priced below market value.

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