Commercial real estate wholesaling is when you put a commercial property under contract and then assign that contract to another buyer for a fee before the closing. It is similar to wholesaling a house, but buyers price the property by its income rather than repairs, the checks take longer, and the contract needs more time.
What Is Commercial Real Estate Wholesaling?
A commercial wholesaler gets a purchase contract signed with the owner of an apartment building, retail strip, warehouse, or office. Then the wholesaler sells the right to buy that property to an investor. The investor closes with the owner and pays the wholesaler an assignment fee at closing. The wholesaler does not own the building, so the contract is what is being sold.
Commercial buyers look for a property whose income can support the price. That means you need to bring them the numbers, not just an address.
Some wholesalers use a double close instead: they buy the property and then resell it in two closings. That costs more, and on a commercial deal the first closing can require real money, so ask your title company or attorney which path fits.
Commercial vs Residential Wholesaling
The contract itself is similar. Most of what surrounds it is different.
| What differs | Commercial property | Residential property |
|---|---|---|
| How it is priced | Usually net operating income divided by a cap rate | After-repair value minus repair costs |
| What the buyer wants to see | Rent roll, leases, and 12 months of income and expenses | Photos, a repair estimate, and recent sales of similar homes |
| Who buys it | Local operators, syndicators, and private investors | Cash investors, landlords, and house flippers |
| How long it can take | Often months, because of inspections and financing | Often weeks |
How to Wholesale Commercial Real Estate, Step by Step
- Choose one property type and one market. Apartments, retail, and storage operate as different businesses and attract different buyers.
- Speak with buyers before you shop for deals. Ask local operators what they own, what size they buy, and what return they need.
- Create a list of owners from county records, then narrow it to owners who may have a reason to sell.
- Send a letter of intent with your price and terms, then ask for the numbers: rent roll, leases, and 12 months of income and expenses. Many owners share them only after a letter of intent.
- Estimate value using net operating income and the cap rate buyers accept in that market, or use sold buildings if there is no rent.
- Sign a purchase contract that permits assignment and allows enough time for inspections and the buyer's financing.
- Take the deal to your buyer with the numbers attached, and finish your checks during the inspection period.
- Close through a title company or attorney who handles assignments. Payment comes at closing.
How to Price a Commercial Property
Commercial value usually begins with income. Net operating income is rent and other income minus operating expenses, before loan payments. Divide that figure by the cap rate buyers accept for that property type in that market, and you get a rough value.
For instance, $60,000 in net operating income at a 7.5% cap rate suggests a value of about $800,000. At a 9% cap rate, the same income suggests about $667,000. The cap rate can move the price a lot, so ask buyers and local brokers what they are seeing.
The 70% rule does not apply here. It is a house-flipping shortcut based on after-repair value, while an income property is priced on what it earns.
A vacant or owner-occupied building has no rent to use. Price it from sales of similar buildings nearby, and expect buyers to account for the cost of filling it.
What to Check on a Commercial Deal
A commercial buyer will check all of this. Cover the basics before you sign, and finish the rest during your inspection period:
- Leases. Who pays what, when each lease ends, and whether tenants are current.
- Income and expenses. Check them against the rent roll and the tax bill.
- Environmental history. Gas stations, dry cleaners, and auto shops can carry contamination, and lenders often want a Phase I environmental site assessment.
- Zoning and permitted use. Confirm that the current use is allowed.
- Building condition. Roofs, parking lots, and mechanical systems can be costly.
- Debt and liens. Payoff amounts and liens can limit the price an owner can accept.
- Title. Ask a title company to check ownership, easements, and liens.
Where Commercial Deals Come From
A commercial list is more useful when the records have a clear reason behind them. These are common places to start:
- County records. Ownership, sale history, and tax bills are public, and you do the sorting yourself.
- Long-term owners. An owner who has held a building for decades may owe little on it and have more room on price.
- Out-of-state owners. Distance can make a building harder to manage.
- Tax delinquent property. Unpaid taxes can give an owner a reason to act, but counties release these records in different ways.
- Inherited property. A building can pass to family members who did not plan to run it.
- Brokers and property managers. They often hear about owners who are tired of managing.
What Inherited Commercial Property Looks Like in USLeadList's Data
USLeadList sells state lists of commercial property connected to owners who have died. Through the November 2026 list, on the main tab after duplicates are removed, the biggest groups are general commercial at about 27% of records, apartments and multi-family at 15%, stores and shopping centers at 12%, warehouses and storage at 10%, and office buildings at 7%.
About 10% of owner mailing addresses are outside the state where the property is, and about 3% of records show a tax delinquent year. For properties that have a lot size on file, half sit on about 0.4 acres or less, and one in ten sits on 5 acres or more. These figures come from the main tab of the list, after duplicates are removed.
These lists are sold by the state to one buyer at a time, and records go back to January 2022. They are intended for experienced commercial buyers, not beginners, and they are not cheap. See which commercial states are open. If you are just starting, inheritance leads by county are the place to begin.
Inherited Buildings: Who Can Sign?
If the deed is still in the name of the person who died, someone may need court authority before a sale can go through. If the building passed to several heirs, each co-owner may need to sign. A building can also be owned by a company, and then the company's documents decide who can sign. Ask who has the authority to sell before you make an offer, and have a title company or attorney confirm it before you assign the contract.
Is Commercial Wholesaling Legal?
It depends on the state, and the rules keep changing. Some wholesaling laws apply to all real estate, so do not assume a commercial deal is exempt. Two examples:
- Illinois: since 2019, a person who deals in assignable real estate contracts two or more times in any 12-month period must be a licensed broker.
- Oklahoma: since November 1, 2021, you need a license to publicly market an equitable interest in a real estate contract.
This is a starting point, not legal advice, and it is not a complete list. Ask a real estate attorney in your state before you market a contract. See legal issues with wholesaling contracts.
Who Buys Wholesale Commercial Deals?
Local operators who already own similar buildings are a good place to start. Syndicators raise money from investors for larger deals. Private investors buy for income, and some buyers are working toward a 1031 exchange deadline. Ask each one what size, location, and return they want before you bring a deal.
How Much Do Commercial Wholesalers Make?
There is no standard figure. Your fee is the amount a buyer will pay above your contract price, and a commercial buyer will check the numbers closely before agreeing to it. Be wary of ads that give a set number. Commercial deals can also take months to close, so plan for long gaps between fees.
Commercial Wholesaling Questions
Can someone new wholesale commercial real estate?
It is more difficult than starting with houses, because you need to read leases and income statements and speak with experienced buyers. Starting with one property type in one market helps.
Is a license required to wholesale commercial real estate?
The answer depends on the state. Illinois requires a license for repeat dealing, and Oklahoma requires one to publicly market a contract. Other states have different rules that keep changing, so ask a real estate attorney in your state.
How long should a commercial wholesale contract last?
Give the buyer enough time for inspections, financing, and your assignment. Inspection periods of 30 to 90 days are common, and the right length depends on the deal.
Already working commercial deals? USLeadList's commercial real estate leads are sold as state lists, one buyer at a time, so check whether your state is open.