Plan- For my next investment my plan is to buy a property where I can try the brrr strategy.
Problem- The average house in my area is easily 300k so saving for a down payment could be a little slow.
Possible solution- Was considering looking into wholesaling, would help accelerate getting the 20% needed. It would also help find properties that would be great for the brrr strategy.
Looking to learn more about wholesaling in Alberta, laws, regulations, and anything that a guy should know before jumping in. Does this seem like a feasible solution?
Thanks bigger pockets network !!
hi Cody, I live in Calgary so I totally understand the challenge of finding properties that you can afford, and that will generate a reasonable return when rehabbing/renting. So, question: have you considered investing in other cities where the numbers work? My choice was to invest in the US. It is more complex when investing across the border. But doable. Something to consider.
Hi @Cody Hill ,
I was going to say the same thing as @Gord Stevenson . Not to sway you from your plan as I'd want to hear from a wholesaler in your area first, but I buy many of my properties for under $30,000 and wholesale them for a small profit. I just do enough properties to make it worthwhile, but it doesn't sound like you can get deals at this price in your area and might be worth looking somewhere else.
Hello @Cody Hill
I hear what you are saying, given that we were in the same city.
I suggest that if you plan on being a wholesaler, to explore the opportunities within pre-foreclosure, estate sales and such. You will have to work for it for a little while until you get a system going!
Good luck and don't hesitate to reach out if you have any questions. FYI, we are not wholesaler, but we welcome wholesaler to bring deals to the table.
@Gord Stevenson Hello Gord,
That's just it, finding something within the 2% realm seems nearly impossible. I have gave it some thought to investing in the US. I looked around a little bit and the numbers do seem to work much better, which is pretty attractive. I'd be interested in learning more about investing across the border, the thought scared me a bit. Little more of a hands off landlord approach then I'm used to but love to hear more about it!
@Brett Snodgrass the idea of a property being $30,000 still seems like a shock to what I'm used to around here. I keep hearing of people doing the virtual wholesaling but I feel like it might be hard to grasp without doing some local deals to learn the process. I imagine building a network of people you trust is a must when investing somewhere else.
If you send me your phone number I will give you a call. I understand how the cross-border complexities work. Cheers!
Hey @Chris Chang
Great to find someone else in the same city! I have started looking into pre-foreclosures a bit and exploring those opportunities. I have read a decent amount about wholesaling in the US but have heard the legal stuff is da little more difficult here. Know any of the differences ?
Hi @Cody Hill
I haven't been able to find any deal in Calgary that BRRRR would have worked. The closest I came, I found a trashed house & fixed it up to flip. If I'd tried BRRRR I estimated that I'd only have gotten about 55% of my money back.
So I tried the US and was able to find several properties way below market. Bought one for $36k, fixed it up & flipped (beginner's luck? hope not!). My problem was getting financing in US but BRRR would have been no issue there.
So now I'm split as to where to focus. US appears more profitable but more complex especially with remotely managing the projects. So I'd love to see someone succeed here with your plan.
Hi @Tony Akhigbe ,
You may have misread my posts. I also believe BRRR is difficult in Alberta. That is why I have been investing in the US, even with the unfavourable currency exchange,
I have no plan to buy real estate in Alberta. I do have a principle residence in Calgary, and if I was solely focused on wealth creation I would have sold that too and rented for our own shelter needs. It is cheaper to rent than own in Calgary. But I didn't do that because we don't want to move frequently and do like to maintain our residence to our standards rather than be subject to a landlord's investment decisions.
Hi @Gord Stevenson , Ahh sorry about that, my bad.
@Cody Hill Yes, it's tricky without some trustworthy teammates on the other side, but you can find those here on BP. If you go that route you can find people in the area you're wanting to invest and see how they handle themselves in the forums (are they knowledgeable, team player). Anyway, it looks like the right people are responding to the post and able to give you some advice about your city that I can't. All the best with whatever you go with.
hey @Tony Akhigbe
I have been finding that as well, hard to find anything with a big enough spread to make it work. I have heard a few success stories in Edmonton for getting a brrr to work. They were buying bungalows and adding basement suites to make it work.
I am starting to consider the jump across the border as well, numbers work much better. Looking to learn more about it myself, have been given some resources to read. Seems to be more profitable with less skin in the game. Also like the idea of being in a different market then you reside so if the market tanks your investments shouldn't drop with it.
I'm scanning all of the wholesaling posts here on BP. Im looking to get some insight on this strategy aswell. I would like to invest in my own area here but currently i do not have the funds available to drop 20% on a rental. Seems like the strategy you've suggested here is very similar to what I am aiming to do. Build capital from wholesaling and then buy rentals.
Being it a year since the last post on this forum im hoping you may have an update to the wholesaling strategy that you were looking into.
Has anything changed? Any new updates?
Thanks for the great read!
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