Commercial Real Estate For Dummies...

**NJRealEstate** · Feb 13th, 2012, 12:28 AM

Lauren, thanks for all the GREAT info.

Could you give us some details on wholesaling. In the NJ standard RE sales contract it specifically says the contract will not be assigned.
Is this a state by state rule, or just the standard contract?
I have been told that wholesaling is not a viable concept in this market, however it would seem like the easiest entry into RE investment for someone with little cash.

**andviv** · Feb 14th, 2012, 10:50 AM

Originally Posted by NJRealEstate

In the NJ standard RE sales contract it specifically says the contract will not be assigned.

Well... what if you don't use a standard contract?

Hire a lawyer (this will cost you probably between $100 and $200) to write you a contract that works for you and that includes a clause that says the contract can and may be assigned.

Originally Posted by NJRealEstate

I have been told that wholesaling is not a viable concept in this market, however it would seem like the easiest entry into RE investment for someone with little cash.

Do the people who told you that are millionaires?
if not, disregard what they are saying.

And then go find somebody that is making money wholesaling.
And ask them questions.
And offer to work for them for free for a month and help them and learn from them.

Many (most, actually) will say no.
But you just need one to say yes to make it happen for you.

Are you, by any chance, a realtor? --sorry, you sound like the typical, indoctrinated agent who's been told by their broker they can't do anything other than the standard so they can make money for them.

How many of the REI clubs have you visited in your area?

**NJRealEstate** · Feb 18th, 2012, 10:58 AM

Thanks for the response, I appologize for my delay in getting back.

I am not a realtor, but much of the information I have about REI comes from books (which are hard to discern what info is real and what is fluf), and from agents, specifically one who represents the banks on REO properties.

I attended my first REI club meeting this week, and it was an eye opening experince, I will deffinatly be attending many more meetings. Met a few hard money lenders and a few full time fix and flip guys, but no one who wholesales as a specialty.

I think the next step is to figure out who to wholesale deals to? I am asking the money guys I met at the meeting, as well as other investors I work with if they ever buy wholesale deals.
Is there a better way to find buyers of deals?

Also Lauren, do you know how your friend was able to arrange financing for such big deals with a job like waiter? Was it due to the ease of getting cash pre 08? I currently work as a golf professional and much of my money comes in the form of cash and is totally variable and traditional financing is difficult to find even with a great credit score.
I am working on my first deal and will take LOTS of pictures to build a portfolio to show investors on future deals to try and get access to private money.

Any other siggestions for getting $$ to do more deals?

**andviv** · Feb 20th, 2012, 10:46 AM

Books are a good source, problem is, they may get outdated rather quickly, especially in today's market when the lenders and HUD are changing the rules constantly.

Realtors, in general, won't understand anything other than the standard contract. They don't want to deal with anything that may delay their sales... remember, they are just that, sales people, and as such make money by selling more units. Anything out of the ordinary delays them and they don't make money.

Glad you attended that meeting. About who to sell the deal to, that is easy... and you are doing it right. When you find that great deal you just simply call the hard money lenders, tell them about the numbers, and they either finance it for you or tell you who would be interested.

Have you studied your local market? How much are the rents going for? sales price per SQ.Ft?

A suggestion for getting more money for RE deal? hmmm win more tournaments? (just kidding, not that aware of the way financing is working in NJ... here in DC prices are going up and lenders want traditional lending, nothing out of the ordinary as they know there is money to be made)

**NJRealEstate** · Feb 29th, 2012, 08:11 AM

My issue with traditional financing is that I am:
1. relativly young, just turend 24 and a very recent college grad with limited work history
2. make the majoriy of my income via cash, and my on the books income was primarily from overtime
3. I took unemployment for a short period of time last year ( i know this seems lazy but I figured I payed into it, might as well take advantage.) My time away from traditional job is what lead me to the fast lane. The idea that you can do ANYTHING, and that you do not have to settle for long hours for moderate pay.

I am going to look at Hard Money Lenders, and a few groups that offer lines of credit for flipping houses, however I am concerned about identity theft as many of these groups are not as squeaky and clean as Chase bank per say.
Any recommendations of Red Flags to look for or of things I should watch out for to make sure I am not being scammed, or ways to seek out good non traditional sources of capital? I am currently using the internet and then calling in to people,

**wgayler** · Feb 29th, 2012, 10:51 AM

My recommendation is to take a few of these classes. They are the best educational tools a commercial real estate investor could ever possess.

Education | CCIM Institute