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New to wholesaling

l.graham

0
REIN Member
Joined
Sep 4, 2013
Messages
2
Hello,
I am new to the real estate game and would like to wholesale to experienced investors. I started marketing campaigns, getting leads but don't know what do with them...
My question is, are there investors in Calgary that use wholesalers to find investment properties?
Thanks!
 

SVS

Realtor/Investor K-W-C and surrounding area
REIN Member
Joined
Jul 28, 2013
Messages
211
Please be careful wholesaling it can be very risky make sure you dont put anything under contract until you have buyers lined up for it. Also your customers are going to be people who buy houses with cash to flip so call around ask some realtors and contractors you may dig up some names.
 

Thembi

0
Registered
Joined
Feb 27, 2008
Messages
104
That sounds like a higher step to start with but am sure you could post your properties here. As a newbie, how do you know you have the best deal? What if you think you have a deal and realise you can't wholesale it. I think you should take time to educate yourself before flipping properties to investors.. Education is key before you can leap that high.
All the best!
 

Lucas B

Prince George Investor, Meeting Organizer
REIN Member
Joined
Feb 11, 2015
Messages
21
As a new investor in Prince George, I have been asking myself these same questions, and am starting to come up with answers. I have yet to do my first wholesale deal, so I would also like to find other investors who have experience in wholesaling. I believe I am on the right track though.

I am in the process of reviewing a Final Draft of a Contract of Sale with my lawyer that states that the contract is assignable, and the Purchaser is able to market the property before closing. If you do not have a deal, you will not easily find a buyer to wholesale to. I will be ensuring that my contract has several legal ways that I can cancel it, such as Subject to Financing, Satisfactory Inspections, etc, useful if you cannot afford the property and can not find a buyer. It is important to be honest to the Seller and notify them that it is not a standard contract and to explain the terms and that you intend to profit from assignment of the contract. This type of deal will most likely only be accepted by motivated sellers, not MLS listed properties.
 

neill

Airdrie, AB
REIN Member
Joined
Oct 22, 2007
Messages
472
Hello,
I am new to the real estate game and would like to wholesale to experienced investors. I started marketing campaigns, getting leads but don't know what do with them...
My question is, are there investors in Calgary that use wholesalers to find investment properties?
Thanks!

We would be interested in looking at any Airdrie leads that you may generate and wish to wholesale.

Thanks :)
 

Thomas Beyer

0
REIN Member
Joined
Aug 30, 2007
Messages
13,881
Wholesaling works only on the midnight TV channel, or if you have substantial cash to close fast, and then assign or sell the house to a buyer. Wholesalers buy at a discount because they have cash and can close quickly, because they know a market very very well. It is not a junior entry level strategy, but a senior strategy for folks with indepth market knowledge, cash, access to potential buyers ( say because they are realtors buying themselves a listing) and who can close faster than the average buyer.
 

neill

Airdrie, AB
REIN Member
Joined
Oct 22, 2007
Messages
472
While I agree that it is a more senior strategy, to say that it only happens on TV is a stretch, as we have both sold a few and benefited from purchasing a couple properties in this manner... I am working on one in Ottawa currently (hence wholesaling it, as it is not where our team is set up). It is definitely not our number one source of income/acquisition though.
 

Thomas Beyer

0
REIN Member
Joined
Aug 30, 2007
Messages
13,881
While I agree that it is a more senior strategy, to say that it only happens on TV is a stretch, as we have both sold a few and benefited from purchasing a couple properties in this manner... I am working on one in Ottawa currently (hence wholesaling it, as it is not where our team is set up). It is definitely not our number one source of income/acquisition though.

Indeed. You are confirming my earlier post. It's like saying "I am in the home run business". Home runs happens once in a while when you show up often enough. It is not a strategy, but the result of continuous, focused real estate investing in a local market, with cash, indepth market knowledge and access to buyers.

Wholesaling is not a beginner strategy, but an illusion shown on TV as "get rich - it is easy".
 

Aaron Moore

0
REIN Member
Joined
Oct 22, 2008
Messages
114
Wholesaling real estate in Canada is alive and well! There are more wholesalers and more wholesaling happening now than when this post was originally written. I thought I'd give some input as someone who actively wholesales real estate. I'm in Toronto, but I'll bet there are active wholesalers in Calgary. I buy from wholesalers and I wholesale properties to other investors. Whether I'm buying wholesale deals or wholesaling/assigning my deals depends on how many projects I have on the go and how busy my life is.

For your original question ...
"are there investors in Calgary that use wholesalers to find investment properties?"
Ask around at REIN and other local REI networking events about who buys a lot of properties per year. It could be investors buying a lot of rentals or someone rehabbing and flipping. Then talk with these people, find out what they want to buy, then ask yourself if you're capable of finding these types of properties. If you can buy them at a discount, then I'm sure the buyers will want the deal. It doesn't matter if they've ever bought from a wholesaler before. As long as you bring them the type of deal they want all signed up and ready to go, then I think they'll be interested.

Of course finding deals is easier said than done. Many people who attempt wholesaling fail because it requires significant time, energy and skill. It's a sales and marketing type of business. Many investors don't like talking with sellers on the phone, don't like "no" and rejection, and it's just not for everyone. You need to know yourself and what you like to do. But houses are being wholesaled all the time in Ontario and throughout Canada.
 

Michel Lafleur

Frequent Forum Member
REIN Member
Joined
Apr 30, 2015
Messages
205
I agree with many of the comments written so far.
Wholesaling sounds like an easy point of entry, but it really only works well when you know the market, how to analyze deals, and you have a network of active buyers looking for those kinds of deals.
I work as a Realtor, and get many good leads through wholesalers...a good deal is a good deal, and active buyers are always looking for opportunities. A common problem I have observed with some new investor/wholesalers is bad paperwork; if you are going to pursue wholesaling you need to be good with your contracts. Your lawyer and the lawyer of the end buyer will thank you. If you fumble the contracts, you may not get the chance to do another deal with that seller or buyer.
On that topic, if you arent signed up for it already, I would suggest Barry McGuire's Rapid Cash Program as a good way to learn about proper contracts & transaction documents, and the idea of assigning or wholesaling deals. This program will be in Edmonton in May and Toronto in June...
https://info.reincanada.com/rapid-cash-program-registration
 
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