Newbie Wholesaler needs help

9 Replies

Hey BP community,

I’m a newbie wholesale investor in Toronto, ON Canada who needs some help in order to better understanding the transaction process regarding wholesale investing.

I understand how to attract motivated sellers and cash buyers. But once I get a property under contract. What do I do next?

Do I submit it (the purchase agreement) to a title company/real estate attorney first or after finding a cash buyer?

Does the cash buyer pay me my assignment fee or does that come from the title company/lawyer at closing?

Any help and advice regarding these questions would be greatly appreciated.

Cheers,
Ian

Are you undertaking to wholesale in the U.S.A. or in Canada?

Originally posted by @Roy N. :

Are you undertaking to wholesale in the U.S.A. or in Canada?

Hey Roy...I'm working as a wholesaler in Canada (Toronto).

You have some serious research & homework to do before you consider doing any business my man. Read some ebooks and watch youtube videos on this before talking to any buyers or sellers.

@Ian Agard

Bro that amazing thing about this business as far as wholesale goes is there are so many ways to do it. I'll recommend getting a Straightforward good mentor. To answer your Question this is how it usually goes down.

You find the seller, (They're motivated of course" and you get the property under contract (hopefully at a great price and rate) ( Typically distressed property ARV x .7 - Repairs - Fee= MOA ((Max Allowable Offer)) ) As soon as you get that seller signature bro. Take that contract ASAP to the Title company or if your a Closing Attorney type of guy then to them. Have them start running title. typically anywhere from 72-96 hours. (3-4 days). Immediately start marketing for your buyer. You want cash now? Demand a "nonrefundable" Earnest money deposit of at least a grand. Tha way even if your buyer backs out and wastes your time you get something out of it. If your double closing. Get your buyer to sign that second P&S agreement or if you're assigning it, have em sign that. Lastly...take that contract as well to the closing agent or attorney. Then pick up your check once titles clear. BOOM not all heroes wear capes.

Originally posted by @Christopher Charles :

@Ian Agard

Bro that amazing thing about this business as far as wholesale goes is there are so many ways to do it. I'll recommend getting a Straightforward good mentor. To answer your Question this is how it usually goes down.

You find the seller, (They're motivated of course" and you get the property under contract (hopefully at a great price and rate) ( Typically distressed property ARV x .7 - Repairs - Fee= MOA ((Max Allowable Offer)) ) As soon as you get that seller signature bro. Take that contract ASAP to the Title company or if your a Closing Attorney type of guy then to them. Have them start running title. typically anywhere from 72-96 hours. (3-4 days). Immediately start marketing for your buyer. You want cash now? Demand a "nonrefundable" Earnest money deposit of at least a grand. Tha way even if your buyer backs out and wastes your time you get something out of it. If your double closing. Get your buyer to sign that second P&S agreement or if you're assigning it, have em sign that. Lastly...take that contract as well to the closing agent or attorney. Then pick up your check once titles clear. BOOM not all heroes wear capes. Need mentoring? ye-psi.com

Stay Lit,

Christopher U. Charles

Hey Christopher...thank you so much so for this valuable information! You've definitely helped me to better understand the wonderful world of wholesale real estate investing. I'll checkout your website regarding mentoring.

Thank you again!

Ian.

Originally posted by @Ian Agard :
Originally posted by @Roy N.:

Are you undertaking to wholesale in the U.S.A. or in Canada?

Hey Roy...I'm working as a wholesaler in Canada (Toronto).

Ian:

You fist need to first learn a little more about real estate transactions and how they are handled here in Canada (vs. what you read about them in the U.S.A.).   In Canada, all real estate transactions (Closings) are handled using attorneys - we do  not have title companies here (yet).  

Additionally, in most, not all, provinces you will also run afoul of the law/regulator if you market real estate you do not own without a licence.   This does not mean you cannot assign a contract, but the matters of disclosure and intent will factor into how the transaction might be perceived.

There are a few folks on BP wholesaling in Canada, but I'm not sure if any of them are undertaking it as their sole business practice ... due to the size of markets; Canadians conditioning to use real estate agents; historically low mortgage arrears (<1%) and default (<0.5%); and privacy laws which make acquiring lists of motivated owners challenging .... wholesaling doesn't seem to work as well here.

@Roy N.
Thank you for clarifying the difference between Canadian and U.S wholesaling.

Hello Ian,

Welcome to Bigger pockets and good luck with your real estate investing journey. 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here