I am just starting off my wholesale marketing campaign in Halifax, Nova Scotia and I just wondered what contracts will be needed?
I understand that I will need a right to purchase agreement with an 'assign to' disclosure so I'm able to 'sell' the contract to an cash investor. However, I met with a RE lawyer the other day and she suggested that I would need the contract mentioned above and then a separate contract for the final purchaser. I imagine she suggested this so the seller and buyer's 'numbers' don't come in contact and the seller doesn't see the margin I have built into the deal for my profit. Does this sound right?
She also suggested that I become and incorporated company instead of a partnership because of the potential liability if something was to go wrong. Is this something that you pros on BP would suggest to? From my reading, I was under the impression I would be able to effectively wholesale without this?
Many thanks in advance for the advice!
Christian, I really suggest you not copy strategies or methods or contracts based on what we might do in the States, wholesaling is pretty well scrutinized here state by state as it is, I would bet you have similar concerns where you are.
Asking us about contracts and acting on what might be acceptable here may not be where you are.
Generalized investing strategies might be appropriate but you really need to begin understanding your RE requirements and legal aspects from a lawyer or proper authority there. Good luck :)
You can wholesale where you are, you will need to understand the law and the specific, minute details that occur during the purchase transaction in order to be comfortable moving forward. You can PM me if you would like and I would be happy to speak with you by telephone to offer you a Canadian perspective.
The key thing to remember is there are two things that you need to do above all else to succeed at wholesaling.
1. Consistently network and build your personal brand with real estate investors so that you will have buyers who you already have a strong relationships with.
2. Find real good deals that are so good they are guaranteed to have multiple buyers interested in them.
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