Can you do wholesaling in Canada?

15 Replies

Hello,

Is it possible to do wholesaling in Canada or is it better to find a way to be active in the United States?

It's possible to do wholesaling in Canada - Personally that hasn't been my strategy, but it's definitely an interesting topic, because we seem to not believe it's possible here.

Would love for people to provide examples of how they've done wholesales in Canada.

If you search the forums, you will see several threads asking the same question.

Yes, it is possible to wholesale in Canada, but it won't be as easy as in the U.S.A. for several reasons.  Outside of a few of the larger metropolitans, it is doubtful whether you could make a business based solely on wholesaling.

1(506) 471-4126

@Krishna D.

Hello Krishna, 

This is what I am planning to do here in Alberta, I Just attended a Rich Dad seminar where they suggested that this is the best way to start in REI, however this is the same question that I have. It seems that there could be a market here for this as the economy seems to be on the upswing. Im curious to see if you've done anymore research on this strategy and if you may have any tips for me? Thanks!

Don't have too much experience with wholesaling but would be interested to learn more as well!

I mostly focus on acquiring rental properties at the moment. It does seem like it should be possible, I am looking to test direct mailing in the future.

Has anyone had any luck with foreclosures? I know in the US it's much easier to acquire a foreclosure and a lot less hassle and I know the banks in Canada don't let them go for nothing.

Originally posted by @Dan Roberge :

Has anyone had any luck with foreclosures? I know in the US it's much easier to acquire a foreclosure and a lot less hassle and I know the banks in Canada don't let them go for nothing.

 Dan:

If you do a little search of the forums, you will find discussions/explanations of foreclosure and Power of Sale {half the jurisdictions in Canada do not use judicial foreclosure}. Lenders - particularly in the case of Power of Sale - have an obligation to divest the property at FMV

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Roy
Thanks for pointing me the right direction I will defiantly continue my research into it!

Reach out to @Luc Boiron he has done some very successful wholesale deals in the recent months

@Cody Adams

my research on wholesaling in Canada has not been too positive. You could but it seems limited.

There are several ways to invest in real estate so i am looking at those.

But indeed wholesaling is often recommended as a way to start. or you could try as well bird-dogging. 

@Dan Roberge

with foreclosure in Canada, you will not have the kind of deep discount that they get in the USA. depending on the province the way the property is sold could be through a bid process in court, which at the end just inflate the price

@Sarah Larbi thanks for the mention. I haven’t been very active on BP lately.
I just closed on my four wholesales in the past month. It’s definitely possible to do here. My wholesale fees have varied for $7,000 to $70,000.
The biggest difficulty is getting the properties at enough of a discount to warrant a wholesale fee.

Great info thanks everyone.

Luc

Do you known a person must be licenced to wholesale in Canada?

I have also had success in wholesaling although I would highly recommend just becoming an agent who specializes in locating properties and negotiating them for cash buyers.  

It is important to remember that a wholesaler traditionally sells their promise to purchase to another person...this means that you have entered into a contract to purchase a property. If you have no intention or chance of ever purchasing that property than you are entering into that contract in bad faith.  

The solution to this is to have hard money lenders willing to lend you the money or partner up with you so that you can buy it if you cannot sell the promise to purchase.  

This means that you need to:

1. Know how to evaluate the After Renovation Value.

2. Estimate the renovation figures accurately

3. Network to find reliably people who know real estate and are comfortable investing in high risk deals such as the ones you are going to be bringing them.

4. Make sure that the price that you are offering is a guaranteed deal if it is accepted by the seller, there can be no doubt in anybody's mind about this...otherwise you are exposing yourself to a lot of risk on a lot of different fronts.

I would also advise complete transparency with the seller.

Originally posted by @Cody Adams :

Great info thanks everyone.

Luc

Do you known a person must be licenced to wholesale in Canada?

 Cody, I don't believe you need to be licensed to wholesale in Canada. In fact, I think being licensed could hinder you. If you are licensed, all of your marketing needs to include that you are a licensed agent. This can definitely turn off sellers. However, if you don't have access to an agent who can pull comps for you, you either need to make that connection, or get your license. I usually buy my wholesales firm at a price where I know I can sell it to my list, and if I can't, I can flip it myself.

Awesome thanks for the reply!

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