How to Make $10,000 in Commercial Real Estate without Down Payments, Loans or a License

Discover how Anthony made $10,000 in commercial real estate without a down payment, loan or a license! Step by step, in vivid detail, you’ll learn how you too can make $10,000 or more with commercial wholesaling. From how to find the good deals to how to locate qualified buyers so you can be the “middleman” and put real cash in your pocket. Maybe you want to buy your first commercial property so you can leave the rat race but you don’t have the down payment money or the ability to get a big commercial bank loan? Wholesaling commercial real estate could be your stepping stone to achieving your dream! Learn more below:

 

When Anthony came to me, he had a problem. He wanted to invest in commercial real estate, but he didn’t have any cash to purchase commercial property. What was the solution to his problem? Join our Pre-Protégé Program and learn how to wholesale under contract deals to qualified buyers for a fee. Using this strategy, he can build up a treasure chest to purchase his own commercial deal.

The commercial wholesaling process can be broken down into 3 steps:

1. Generate commercial leads
2. Get good deals under contract
3. Find buyers and close the deal

Using these 3 steps, Anthony made $10,000 in the commercial real estate without a down payment, loans and without a license.

Why Wholesale Commercial Deals?

Why would you consider wholesaling a great commercial deal you found? Well, for one, you may have found a great deal, but you might not have enough money to purchase it yourself. Or you may be like Anthony and want to get into commercial real estate, but you don’t have the money to get started. Wholesaling commercial real estate allows you to build up your savings so that you can invest in commercial real estate yourself.

Why the Pre-Protege Program?

At Commercial Property Advisors, we created the pre-protege program for those who can’t afford our Protege Program. In the Pre-Protege Program, we train you to wholesale commercial real estate to qualified buyers for a fee. This process enables students to build up savings that they can then use to get into the Protege Program.

 

3 Steps to Wholesaling Commercial Real Estate

 

Generate Leads

Lead generation is one of the most important aspects of commercial real estate investing, whether you’re wholesaling or not. You can learn to analyze deals, talk to sellers, and apply creative financing techniques, however none of those skills matter if you don’t have any leads. So, the wholesaling process begins with learning how to connect with commercial property owners. And the best way to do that is to go directly to them. At Commercial Property Advisors, we have developed multiple strategies to connect directly with property owners. And these strategies work regardless of what kind of market you are in.

The key to implementing step one is to use effective strategies that generate leads, do the work of following up on those leads, and then knowing what to say once you’ve made a connection. In the Pre-Portege Program, we train our students to implement effective lead generating strategies, how to be tenacious in following up so they can capitalize on leads, and how to build rapport and credibility once they’ve connected with the property owner.

 

Get Good Deals Under Contract

Good Deal: A good deal has three components.

• It is priced under market
• Has the potential to increase the NOI – This is important because as the NOI goes up, the property value goes up. When you increase the rents or lower expenses, thereby increasing the NOI, you are forcing the equity and creating value.
• The Potential for Seller Financing. This would include a Master Lease Agreement, seller carry first, or seller carry second. Creative financing is based on the seller’s motivation, which means you need to be a good listener, know the strategies and then structure your seller financing through the seller’s motivations.

Under Contract: There are two components that are important to include in a commercial contract when wholesaling commercial real estate. First your contract must include protection of your earnest money deposit. To put a property under contract you are required to put down a small deposit and you need to protect that money. This is done by including contingency clauses in the contract. Here are four protection clauses recommended for any commercial contract:

• Inspection Clause – An inspection clause in the contract enables you to get out and get your money back if the inspection fails.
• Financing Clause – The contract must also include a financing clause which allows you to back out of the deal and get your deposit back if you are unsuccessful getting financing.
• Title Clause – A title clause enables you to back out the deal if there is a lean on the property or something is wrong with the title.
• Appraisal Clause – Many commercial contracts miss this, but the contract must include an appraisal clause.

The second essential component needed in the contract is language that allows you to wholesale your deal. This allows you to assign your contract to the next buyer so that you can get paid. All of our wholesaling contracts use this language.

 

Finding Buyers and Closing the Deal

Finding Buyers – How do you build your list of buyers? In the pre-protege program we train our students how to find buyers through online marketing. Just by going online and advertising or marketing your deal, you can build up a buyers list in a very short amount of time. Another avenue is networking. Commercial real estate is a relationship-based business. Deals are filed, money is raised, and problems are solved through relationships. Networking is especially important for step three.

Closing the Deal – The Pre-Protege Program equips students with strategies for closing deals.

 

Pre-Protege Wholesale Deal

Anthony is 28 years old and from a small town in Minnesota. He is a fairly recent grad with two Bachelor degrees and one Master’s degree in geology. Since graduating, he has decided to pursue real estate investing.

Deal Details

Property: 9-unit apartment building in a competitive market with rising prices and lowering cap rates. A very tight market with low inventory. This may be somewhat like your market, but it doesn’t matter what market you’re in. You can be in a hot market or not. The 3-step wholesaling process works wither way.

 

Step 1: Generate Leads

Although the pre-protege program provides multiple ways to generate leads, Anthony only had the opportunity to explore three or four of them himself. He used our proprietary marketing methods and found that they worked pretty much instantly for him. Anthony is convinced that if he were to have tried wholesaling on his own it would’ve taken him much longer. He found this to be a simple step. You just generate as many leads as possible and eventually no matter where you are, it will work.

 

Step 2: Get Good Deals Under Contract

Anthony was able to get the property under contract for a price below market value, giving the deal built in equity. Remember, he found it in a competitive market which means this below market deal will be in high demand and the new buyer has some built in equity which is attractive to other investors. The cash-on-cash return was between 10 and 13 percent and the rents can be raised so it has the potential to increase the NOI and force the equity upward. Not only is it priced under market, but it is also in a high cap rate area and the property is in decent condition.

Anthony is convinced that the Pre-Protege Program provided some key performance indicators which gave him something to aim for. Without the program he wouldn’t have known the components of a good deal and what to aim for.

 

Step 3: Finding Buyers and Closing the Deal

Because Anthony did so well in the first two steps, step three was easier. A wholesale deal priced under market with upside and value is a popular deal. He was able to find a buyer and close the deal using no money of his own. Making $10, 000 wholesaling a deal gave him a wider vision of what is possible in commercial real estate. Starting out he had no experience or money and closing this deal has given him the motivation and confidence to continue wholesaling deals, learning, and working hard.

Through this process, Anthony has found that other investors don’t have the same strict criteria as we do. So, he plans to use wholesaling to build up capital and as he sifts through the properties, wholesale the properties that don’t meet his criteria and then buy and hold the best properties for himself.
 

Pre-Protege Program

You too can get the same support and tools as Anthony in our Pre-Protege Program. If you want to become a commercial real estate investor but don’t have a down payment, loan or license, this wholesaling course may be for you. Or if you are interested in the Protégé Program, the pre-protégé program may be a good steppingstone. The link below will take you to a video where I will walk you through the process of how the Pre-Protege Program works, provide detailed examples of student successes, and give you the confidence that you can wholesale commercial deals just like Anthony.

Learn more about the Pre Protege Program HERE