Wholesale Success In Canada

22 Replies

I just picked up a 20,000$ cheque from my Notary here in Montreal. It was a deal for a four-plex that I negotiated an excellent price on that made the owner very happy (he was tired of being a landlord and he got royally screwed by his previous tenants). Québec practices rent control and tenant protection to the point where multi-family owners have to be extremely savvy.

I spoke with @Brian Gibbons from Bigger Pockets who told me I could sell my rights to the contract for 20,000$ (which was a lot more than I was originally planning on selling it for). Thanks to him for the free advice that helped me to make this deal a win/win/win for all parties (and for making me a better $$$ return on this deal).

I called a cash buyer who I met through my networking efforts and he was interested. Everything was set up and we were able to complete the transaction in the time frame that the seller required. I apologize that this success story is not that well written as I don't have a lot of time to write right now.

The main thing that I have learned is that there are 3 actions that are important to do simultaneously when building your business as a wholesaler:

1. Talk to a lot of sellers on the phone to find motivated sellers who don't owe a lot of money on their mortgages

2. Visit their homes and make numerous written offers

3. Regularly network with cash buyers, mortgage brokers, lawyers, notaries and other professionals in the real estate field.

@William Johnson

OMG I am sooooo proud of you!

$20K, wow!

Nice increase from $5K huh?

I look forward to assisting you build your REI Business.

Keep the momentum!

Best Wishes,

Brian

That's awesome! Congrats... Keep up the great work :)....Continued success... On to the next one! 

Would be nice to have a Montreal meet up with a bunch of like minded individuals at some point to network and share ideas, stories, etc! 

Originally posted by @Lisa Perez:

That's awesome! Congrats... Keep up the great work :)....Continued success... On to the next one! 

Would be nice to have a Montreal meet up with a bunch of like minded individuals at some point to network and share ideas, stories, etc! 

 Thank you Lisa and anytime just message me I have been thinking of doing that for quite some time actually!

@William Johnson

Félicitations!

I've always been sceptical about the viability of wholesaling in Canadian markets ... a few more of these and I'll have to change my view ;-)

Good job William! Keep them deals coming, I might be interested in a similar deal at some point :)

Funny coincidence, I was thinking about organizing a BP meet up as well. Great minds think alike! Let's do this!

Thank you to all for the warm words of encouragement! One other thing that I neglected to mention is that you do want to close as fast as the seller needs you to buy not faster. So next time I am going to remember that everything is easier if you can stretch the closing date to a month rather than two weeks. Also I was confident about wholesaling this because I knew I could close on this myself if I needed to because HML were waiting on the sidelines as well.

@William Johnson

 Congrats! I didn't know that wholesaling could actually be viable in Canada. :)

One question: how did you find the property? I was thinking of doing a yellow letter campaign locally (Edmonton) but there is no service like listsource here, so am wondering I would get a mailing list here. Or would it just be handing out flyers in your target area?

Hi William, 

Congratulations...That is excellent. 

I am just getting into wholesaling myself and finally getting into action. 

May I ask you a question about step number 2 please? When writing the offers are you using the promise to purchase and obtaining written consent from the seller? 

I'm a bit not clear about this VERY important procedure that no one seems to mention when talking about contracts for wholesaling in Montreal...

Thank you in advance.

Cal

P.s. if you ever decide to mentor someone, even for a day, I would like to be considered...Thanks.

Originally posted by @Cal Gibbs:

May I ask you a question about step number 2 please? When writing the offers are you using the promise to purchase and obtaining written consent from the seller?

That is exactly right, I get written approval (only when it is clearly a good deal) the main thing to remember is that, even if you plan on wholesaling you have to clearly plan on performing on what is a legal contract as well.  This means that you have to be ready and able to buy it yourself according to the deadline that you put in the contract.  This means you need to have financing in place should you need to pull the trigger and buy it yourself.  If you do not have financing in place to purchase the deal then you entered into a contract to purchase in bad faith (never intending to buy it in the first place).  What they don't teach is that you cannot enter into a contract to purchase if you can't execute it.

Wow congrats William! This is great!

I am myself trying to get into wholesaling here in Quebec, but it seems that there is a lack of information due to the difference in the Canadian market compared to the US market. 

I called a few attorneys in my region and they all seemed to be really against wholesaling or simply didn't know nothing about it. How did you overcome this problem that seems to be the greatest obstacle in Quebec for wholesaling? If you don't mind me asking! 

Thank you, and congrats again!

PS : If there is a local meetup ever coming, let me know :)

Originally posted by @Olivier Pare:

Wow congrats William! This is great!

I am myself trying to get into wholesaling here in Quebec, but it seems that there is a lack of information due to the difference in the Canadian market compared to the US market. 

I called a few attorneys in my region and they all seemed to be really against wholesaling or simply didn't know nothing about it. How did you overcome this problem that seems to be the greatest obstacle in Quebec for wholesaling? If you don't mind me asking! 

Thank you, and congrats again!

PS : If there is a local meetup ever coming, let me know :)

 It is always a question about asking the right questions. Wholesaling is about assignjng your contract for an incentive.  

The biggest barrier to your success is you. By far the hardest part about wholesaling is doing the grind everyday. By that I mean making offers all the time. It is possible and it is legal, call the attorney for the Quebec real estate club and she will tell you. Very few pull it off because you only have a 0.33 percent chance of getting those low offers accepted.

Originally posted by @William Johnson:
 It is always a question about asking the right questions. Wholesaling is about assignjng your contract for an incentive.  

The biggest barrier to your success is you. By far the hardest part about wholesaling is doing the grind everyday. By that I mean making offers all the time. It is possible and it is legal, call the attorney for the Quebec real estate club and she will tell you. Very few pull it off because you only have a 0.33 percent chance of getting those low offers accepted.

Okay thank you very much!

Originally posted by @Chris Perry :

Congrats William, awesome work! Wholesaling can be quite lucrative, and it sounds like you're doing it correctly! Well done!

Warmest Regards,

Chris

 Thank you @Chris Perry I appreciate your encouragement!  I am actually expanding my repertoire of exit strategies to a couple of other low money down strategies.  Hard work but I know it will pay off eventually.

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