Toronto, Ontario · Member since 2015 · 24 posts · 8 votes
Hello everyone!
I'm Ian, 20 years old, currently living in Toronto, Ontario and I'm new to the real estate game. I want to get into wholesaling but I'm not familiar with how it works in Canada. I'm currently reading BiggerPocket's starting guide to REI. Please feel free to point me in the right direction. Studying is not a problem for me.
My partner and I are fairly new ourselves from Toronto currently seeking our first investment property. This is a great site with lots of great people to network with. You're starting off on the right foot by studying. Also when you have some time get out to a few REI meetings where you can meet and network with other beginner and seasoned investors face to face.
Wholesaling - Finding a very under-valued property, getting it under contract, selling the contract to someone else for a little more money before the closing date.
Flipping - buying a house, renovating to add value, then selling it at a higher price.
Miami, FL · Member since 2014 · 30 posts · 7 votes
10y
@Ian Ramos When you wholesale you don't keep the property. Your purchase contract is assignable so buyer is "Ian Ramos and or assigns". Ideally you have a cash buyer in place who you assign it to for a higher price than what you contracted with the seller. The difference is your wholesaler fee. Some are of the opinion that this is not legal so to get around it you can do 2 simultaneous closings. In that case you incur some closing costs.
When you flip you buy a property, renovate it (or not) and then sell it for a higher price.
I too I'm just getting started and thought wholesaling would be a good place to start. But the more I research it, the more I see it is difficult in Canada and especially in the GTA. I'm sure it can be done, I see evidence of those doing so in various areas in the city. Might be good if you only want a p/t strategy and I say p/t but still needing a lot of work. I found the Ultimate Beginer's Guide on the site (book and video) are good places to start.