Wholesaling Houses in Canada

6 Replies

I am an American, thinking about moving to

Canada for a few months at first , to see how it suits me. (We are allowed to stay for 6 months at a time in Canada).

I am a beginner a Wholesaling here in the US, I've done 2 deals so far. My question is, after reading these posts that Wholesaling is not big in Canada, Are you still able to find Wholesale deals on the Ontario province ? How difficult can it be ? I am surprised that Wholesaling is not big in Canada!

Originally posted by @Syed Zaidi :

I am an American, thinking about moving to

Canada for a few months at first , to see how it suits me. (We are allowed to stay for 6 months at a time in Canada).

I am a beginner a Wholesaling here in the US, I've done 2 deals so far. My question is, after reading these posts that Wholesaling is not big in Canada, Are you still able to find Wholesale deals on the Ontario province ? How difficult can it be ? I am surprised that Wholesaling is not big in Canada!

Syed:

Here are a few reasons:

  • population of Canada is about the same as the state of California;
  • mortgage arrears in Canada are historically <0.5%, defaults are <0.30%;
  • Canadians are generally well condition to use a real estate agent;
  • privacy laws in Canada are more rigorous - so things such as foreclosure lists, probate lists, delinquency lists are difficult to compose and, in most cases, illegal to sell;
  • financing regulations are different and lenders have an obligation to seek the best return on the sale of a property (particularly in provinces which use power of sale - such as Ontario) and, for that reason, will list properties with a real estate broker (on MLS).

Hello Roy,

That was an amazing answer!  Very concise and factually based.  It does make sense to me now, and I gained a better understanding ,that though we share a similar culture and language, we are different countries with very different systems.  I admire the fact that your default rate is less than .30%

Also its boggling that your population  is just 1/10 of ours.  What do you do in New  Brunswick ?  It sounds like you have good knowledge in the real estate stats .

thank you for taking out the time to reply!  This was my first post on here!  Thanks again

@Syed Zaidi

Default rates are historically low as qualifying for a mortgage has traditionally been more difficult here (save for a few years in the last decade when permitable amortizations grew and qualification standards were relaxed).

Not only is our population 1/10 of the U.S.A., but over 80% of Canadians reside within 2-hours of the Canada-U.S.A. border.   Much of Canada is sparsely populated and very far north.

What do we do?  Why, we are buy-and-hold investors down here in the Maritimes.

I would counsel anyone just starting out to get into the buy and hold investing if they find it suits their personality.  Personally I will do that eventually just as a vehicle to hold my profits from flipping houses in a way where it will grow at least at the same rate as inflation.  I am in wholesaling, rent to own and other creative forms of financing because it suits my personality (highly competitive and in need of constant stimulation).

I believe, however that buy and hold investing is far and away the best and most reliable method of building wealth compared to wholesaling and flipping.

Wholesaling is diffidently a lot more difficult here in Canada but possible. I have noticed people having success in the Ottawa region, I would say any where withing 60-90 minutes of GTA In Ontario is moving to quickly and it's without question a sellers market, making it diifficult to try such a strategy.

Good Morning,

I'm new to the forum, I was wondering if someone might be able to answer this question for me.

Being an investor in Canada, would I be able to move to the united states, to continue my business there, considering that wholesaling across the united states is exponentially easier, with more tools available to find available properties.

If so, what steps would need to be taken, so that I could be able to relocate, and continue my business in the united states?