Your #1 Income Property Resource.

 No Money Down Real Estate Investing Course
Learn How To Buy Income Properties Without Risk, Good
Credit, Money Or Tenants!

Click here for more information

 Welcome to! Visit the Real Estate Investing Forums.

Real Estate Articles 
 Real Estate 
 Second Home
 Success Stories
 Real Estate Q & A
 Real Estate News
 Real Estate Law & Policy
 Money Making Ideas
 Home Improvements
 Tax and Insurance
 Appraisal and Inspection
 Log Homes
 Mobile Homes
 Home Buyers
 Constructions and Home Buildings
 Real Estate Investing 
 Vacation Home
 Rental Property
 Preconstruction Investment
 Marketing Secret
 Joint Venture
 Land Investment
 Lease Purchase
 Probate Real Estate
 Real Estate Clubs
 Short Sales
 No Money Down Investing
 Fixer Uppers
 Resort Home
 Loft Apartment
 Property Development
 Tax Incentives
 Investing Strategy & Tips
 Real Estate Wholesale Property
 How To Articles
 Subject To
 Real Estate Books
 Apartment Investing
 Commercial Real Estate
 Residential Property
 Hotels and REITs
 1031 Tax Deferred Exchange
 Investment Property
 Real Estate Advanced Techniques
 Trust Deed Investments
 Creative Home Buying
 Wholesale Real Estate
 Real Estate Auctions
 Tax Lien Certificate
 HUD Homes
 Real Estate Regional USA
 Austin, Texas
 Colorado Springs
 Reno, NV
 Market Analysis
 Property Management
 Condo Conversion
 real estate guru
 Bank Foreclosure
 VA Homes
 Buy To Let
 Rent to Own
 Tax Deed
 Stop Foreclosure
 Retirement Planning
 Real Estate Investors
 International Real Estate
 United Kingdom
 Real Estate Seminars
 Condo Hotel Investments
 NNN Properties
 real estate notes
 Real Estate Education
 REO Properties
 Life Estate
 Income Properties
 Mortgage and Finance 
 Mortgage Leads Generation
 Mortgage Leads - Leads Mortgage
 Mortgage Marketing
 Creative RE Financing
 Hard Money Lender
 Debt Consolidation
 Income Property Financing
 Home Equity
 Credit Repair
 Mortgage Tools
 Home Construction Loan
 Commercial Loans
 Owner Finance
 Private Lenders
 Discounted Notes
 Assumable Mortgages
 Seller Financing
 Equity Lines of Credit
 Real Estate Pros 
 Real Estate Agent and Broker
 Mortgage Agent and Broker
 Real Estate Marketing
 Real Estate Consultant
 Real Estate Resources 
 Mortgage Foreclosure Example
 Mortgage Origination forms
 Property Transfers
 Tenancy Agreement and Form
 Internet and Online

Real Estate Investing : Real Estate Wholesale Property Last Updated: May 14th, 2012 - 22:24:01

Invest in Wholesale Property

Email this article
 Printer friendly page

Wholesale property naturally depends for its value not so much upon the amount of foot travel on the street as upon its convenience to freight stations, regard being had for both the receipt and shipment of goods. In some lines of jobbing trade convenience to the local retail stores is often very desirable. The former consideration is commonly by far the more important factor, as the transfer of goods to and from freight stations is a leading expense item in all lines of jobbing trade, and is always carefully considered by the experienced merchant. In western cities, where real estate values are low, it is common for jobbing houses to locate on some side track, thereby being able to receive and send out car-load lots at the warehouse, so as to wholly avoid transfer charges by simply paying a small sum per car to the railroad company for switching. The importance of this arrangement in the handling of heavy and bulky merchandise, such as agricultural implements, hardware, groceries, woodenware, carriages and wagons, cement, lime, tile, and very many other wares, can hardly be overestimated. In all lighter lines, however, this consideration is almost wholly ignored. Many lines, as dry goods, boots and shoes, millinery, drugs and druggists’ sundries, notions and small wares generally found in retail stores, pay great attention to prominent locations on account of the incidental advertising it gives, and also to the proximity to retail merchants and jobbing houses, on account of the house-trade from day to day delivered to messengers from these various retailers, who often keep a customer waiting till a messenger can go on a run to the jobber and supply the article demanded.

Owing to the very large area of land in most western cities well adapted to wholesale trade, the values of such lots rule low as compared with the best retail property, which is limited to a very narrow area. There is another peculiarity about property, suitable for wholesale business; that is, as a rule, the supply tends to exceed the demand. There is generally so much unimproved property in all cities well adapted to such purposes that owners are always reaching out for tenants by offering to build in any form the tenant may prescribe at a low interest-paying rental upon the total value of land and improvements, if a long lease of five to fifteen years can be obtained. This is true only in a slight degree of the best retail property, which the public in a very capricious way generally limits by its favor to a very small area in large cities, it being often confined to a very few squares on one or two streets. A retailer with an established trade is very loth to move even a few doors or from one side of the street to the other for even a much better building, for fear the old room may possess some advantage over the new in location which has contributed to his success and which the new location may lack, although apparently as good. Anyone familiar with the retail history of cities will recall moves of this kind made by hitherto successful merchants which proved disastrous. In modern jobbing trade, owing to so great proportion of the business being solicited by agents both locally and on the road as compared with the house-trade, the moving a few doors or even squares cuts very little figure, provided the general situation with reference to freight depots, switches, and local retail stores has not been radically changed.

Another weak point in wholesale warehouses is the danger, in case of losing a tenant, of long vacancy. In retail business the capital required is usually less, and in case of a failure of one firm, another is more easily organized to take its place; but the opening of a new jobbing house involves such a complete organization and so large a capital, facing a certainty of doing business at a great loss for a considerable period while a trade is being established, that a vacancy in a large building suitable for such business often continues for even years.

What is true of warehouses used in jobbing trade is measurably rue of large buildings used for wholesale commission business. We meet the same tendency to overbuild and the same losses from long vacancies in case of moving, failure, or discontinuance of business by the tenant.


Do you own real estate articles or stories and want to share with other investors? 
You have chance to win
$100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:


© Copyright 2001 - 2010 by            Page copy protected against web site content infringement by Copyscape   



Visit Real Estate Forums for every real estate investing topics!  Enter Here


Top of Page

Home Courses Real Estate Forms Income Properties For Sale Forums CalculatorReal Estate Education    

Copyright © 2001 - 2010, All Rights Reserved. Privacy Policy in Observance.