All Forum Posts by: Matt Geerts

Yes, @Roy N. I have an inexplicable inability to keep those terms straight. The point is, I can fund house purchases/flips for profit with private mortgages and not have an issue. *not legal advice

When this passes, I sell everything residential and become purely a transactional investor (flips and wholesales) in the residential realm. I'd still hold commercial because that's where contracts and signatures actually mean something.

What's even the point of entering a business that has a declining profit margin projection?

This is not legal advice: My lawyer says that anybody can mortgage anybody's house without securities laws being involved. I did not cover situations regarding raising funds by notes, mortgage pools, syndication or any other "advanced" fund raising, just "Can some guy from a networking even put a mortgage on my house".

I think there actually are a number of wholesalers operating, but you don't hear about them because they sell their deals quickly and easily to their established network.

Your contract says that you have the right to assign, and then you sign an assignment contract with your buyer and send a copy of it to the seller. This puts you out of the equation.

Don't fail to sell it. That's the short answer. The long answer is that you'd either want to have a weasel clause, or you lose your deposit and hope they don't sue you for more, or you have your own financing lined up and buy it yourself (it is a great deal after-all, isn't it?).

@Aditya Soma the concept is simple - A wholesaler negotiates a killer deal on a house, and sells the contract to an investor for profit. Say I find a house that needs 10k in work and would sell for 100k. I negotiate the seller to a price of 70k. I could do the work and make 15k (after 5k financing costs), but I could also sell it to another investor for 5k who is happy to make 10k because he has no deals in the pipeline right now. 

Sometimes wholesaling is an act of convenience (I have too many deals, so I unload one), and sometimes it is a business model in itself (I seek deals to sell to investors).

BiggerPockets is loaded with information about wholesaling. Unfortunately most of the techniques don't exist in Canada because you can't just download huge tables of people's personal information for the purpose of targeting. 

Thanks @Claude Boiron I will make an effort to contact Hitesh.

I also have a the question out to my lawyer.

As far as I can tell, you are hogtied by the RTA. You have no control over who lives in your house in Ontario. If you rent to a single girl and suddenly there's a dude living there, too, well... he's a tenant now. So you were renting all-inclusive assuming one person would be showering and now there's 4? Sorry, tenants have all the rights.

I've said it at least a dozen times here on BP. Go find the PDF of the RTA, print it off and put a copy beside your toilet so you can read it every day while you're in the right mindset.

Yes, southwestern Ontario as in London, at least. I honestly don't know enough about Sarnia  or Windsor to comment on those. 

What would I suggest? Well, there are a thousand rules of real estate, but there's really only one: You make your money when you buy. So, learn to buy real estate under market value. You don't need to be able to afford a house to do this. Learn about wholesaling. You'll find old posts on BP written by me saying that wholesaling is not possible in Ontario, but I have changed my mind - I've been asked to wholesale a property that I had under contract, and I've also bought a contract from a wholesaler. 

"Ontario" is not a market. There are a thousand towns in this province.

One could start in Southwestern Ontario, or look north of you towards the path of progress. There may still be shabby cottages in Waubaushene or Parry Sound that are off the radar and just waiting for you to send the owners a letter asking to buy it.

MLS = useless. There is no cash flow in southern ontario on the MLS.

You need to get creative. Read the articles here on how to birddog and wholesale. That's how you need to be buying. Find local guys that are flipping houses and talk to them about buying deals from them - they'll often take 5-10k to wholesale a deal to you rather than 50k on a flip just because they have so much going on and there's no risk or work. You get to work hard and make the 40-45k equity spread.