Grunt work

5 Replies

I live in Manitoba, Canada, where no or little money down finance strategies and wholesaling are illegal. I currently want to start out in REI, so I have no hands on experience with doing any REI deals, flips, etc. I'm building capital by paycheck every 2 weeks, but it's a slow process. I've also joined a few REIA groups in Winnipeg, and one of the group meetings is November 30th.

I want to work for other REI for the purpose of developing capital, applicable knowledge + experience and relationships with the people involved.

I've read on here that offering to drive for dollars, clean a investor's property for free, or been their personal assistant for free would be of value.  What else could be valuable to an investor in exchange to learn from them?  Or is what's valuable to them specific to the problems they're facing?

Such as one investor needs a painter while another doesn't.  If you have experience been a professional painter, you could paint the interior and exterior of the house for free in exchange to learn from them?

Originally posted by @Clayton Rokosh :

I live in Manitoba, Canada, where no or little money down finance strategies and wholesaling are illegal. I currently want to start out in REI, so I have no hands on experience with doing any REI deals, flips, etc. I'm building capital by paycheck every 2 weeks, but it's a slow process. I've also joined a few REIA groups in Winnipeg, and one of the group meetings is November 30th.

I want to work for other REI for the purpose of developing capital, applicable knowledge + experience and relationships with the people involved.

I've read on here that offering to drive for dollars, clean a investor's property for free, or been their personal assistant for free would be of value.  What else could be valuable to an investor in exchange to learn from them?  Or is what's valuable to them specific to the problems they're facing?

Such as one investor needs a painter while another doesn't.  If you have experience been a professional painter, you could paint the interior and exterior of the house for free in exchange to learn from them?

Check out R.E.I.N Canada is different from the states, I know a lot of investors and very few wholesalers. Our banking system is incredibly will designed and default is so very very uncommon as banks are not legally allowed to sell below market value. Just work save more money and after you do 1 or 2 deals alone, look for JV partners and offer them a % return. All succesful investors I know gained there wealth through JV's

@Clayton Rokosh

Little to no money down strategies, while difficult to find and rare to complete here in Canada, are not illegal provide you remain within the bounds of contract law.   There is nothing stopping me from selling a quarter section to you with no money down and payments over X-months.

Wholesaling is a bit of a grey area - however legal or not, it's not a viable way to make a living in most parts of Canada as the local markets are too small; availability of distressed sellers is even lower {as Samuel alluded mortgage delinquency and default rates are very low in Canada (in contrast to the U.S.A.)}; and Canadians appear to be well trained to run to a real estate agent when they need to sell.

Offering your services to seasoned, successful real estate investor is one way to gain experience and bring some value.  Once you have a rapport, the best way to bring value is to bring a genuine deal to your mentor.

@Samuel Sedore

From reading your recent posts here on BP, I see you are a fan of Don Campbell and his REIN.   I know some folks find value in their orgnaisation and courses, but many just spend a lot of money - they are a slick, guru(ish) operation which charges exorbitant fees to disperse information readily available for much less (even from accredited schools).

As for lenders being able to divest the defaulted properties, of which they have taken possession, below FMV, it depends on where in the country you are. Foreclosure in Canada is almost evenly divided between provinces which operate under Judicial Sale (Alberta, British Columbia, Manitoba, Nova Scotia, Québec and Saskatchewan) and Power of Sale (New Brunswick, Newfoundland & Labrador, Ontario and Prince Edward Island).

Under Power of Sale, the lender is permitted to sell the property without involvement of the court and often without actually taking ownership of the property. As a consequence, the mortgagor/borrower would/could remain obligated to the lender for any shortfall if the property sells for less than the outstanding loan balance. Conversely, if the property were to sell for more than the outstanding debt, the mortgagor/borrow would retain the surplus. In this scenario, the lender has a fiducial obligation to the mortgagor/borrower (first) and the mortgage insurer (CMHC, Genworth) to obtain the best sale price possible. As such, these properties will almost always be sold through a real estate agent and listed on MLS.

Under Judicial Sale, the sale of the property is conducted under the auspicious of the court and the lender must apply to the court to for permission to sell the property, and the court will sets the bounds and terms under which the property is to be sold. Details of the process vary between jurisdictions, but it is not uncommon in this scenario for the lender to take ownership of the property and, in exchange, release the mortgagor from his/her obligations. In turn, the lender no longer has a fiducial obligation to the mortgagor/borrower, but only to the mortgage insurer (if there is one). All this will be taken into consideration by the courts and it is possible the lender could be permitted to sell the property below FMV ... though, they have no need to sell at a discount (re: low default rates).

@Roy N.

I don't really have any resources that can tell me what REI is like in Canada, so it's nice to hear the differences between the U.S and Canada that's not about finances, taxes, etc.

I did a little thinking about what kind of value can I provide to a experienced REI. All I could think of is time, car, lawn/snow remover guy, and eventually when I complete school...web development. I'm also thinking of becoming part of a property manager company and gain hands on property manager experience. I'm not sure however, what kind of qualifications or skills I need to get hired as one, but I'll call each one in my area tomorrow and get the run down. Once I get an idea of what I would need to develop, I'll go develop those qualities, come back to the same companies and get try to get hired as a property manager.

@Samuel Sedore

I'll pass on REIN Canada. Maybe I'm young and impatient, I'm not really sure, but I don't think I can just sit still working for a paycheck for a unknown amount of time. You could say working for a couple of years would build enough capital, but life can be a pain. Just last week I had to pay $1000 to change all 4 of my tires on my car. That will set me back a few weeks of income, which will set the time I start REI by a few weeks. Stuff like this will keep piling up and piling up till eventually I'll be waiting several years to start my REI. If I can provide value to other investors and form partnerships, we can share the finances for deals, which could mean less time working and more time taking action with REI.

@Clayton Rokosh . Web development services for free would definitely be most welcomed by many investors. If you are able to do this, it could certainly be an ace up your sleeve.

Just ensure you are helping out investors who have your interests in their mind as well. 

@Clayton Rokosh - Definitely there are avenues to find deals to help other investors - FSBO websites (targetted), contract through realtors/ mortgage brokers are all avenues to find deal. As they say, find a deal, money will come..