Calling Investors

[Golda]

Hi everyone!
My name is Golda and I am a new Real Estate investor located in Edmonton Alberta! Currently starting off with wholesaling so I am looking to connect with other Investors or likeminded people in the area or within Canada!

 

[Thomas Beyer]

What does wholesaling mean to you? Buy in cash, with fast closing and flip to retail buyers for a slight profit?

Where in Canada is this a proven business model?


Sent from my iPhone using myREINspace

 

[Golda]

My long-term aim is far greater than Wholesaling but I have contacted a few Wholesalers within Edmonton and Ontario who have proven that it can be a sustainable Business Model with the correct Strategies and Systems in place, also yes that Is the general definition of Wholesaling but there are far more counterparts within the Industry itself there's more to it than obtaining a slight profit. As a new Investor, it can act as a roadmap to retain a substantial amount of insight into the Real Estate Market.

 

[Thomas Beyer]

My long-term aim is far greater than Wholesaling but I have contacted a few Wholesalers within Edmonton and Ontario who have proven that it can be a sustainable Business Model with the correct Strategies and Systems in place, also yes that Is the general definition of Wholesaling but there are far more counterparts within the Industry itself there's more to it than obtaining a slight profit. As a new Investor, it can act as a roadmap to retain a substantial amount of insight into the Real Estate Market.

Call me skeptical. Very VERY skeptical.

How much teal estate do you own already ? Furthermore, I assume you have 400-600,000 in cash lying around or accessible via LOC. Then yes writing cash offers far below market will get you a good enough deal - maybe 1 out of 10 offers you write. You then need a list of buyers or be a realtor as that costs another 3-4%. Are you a realtor?

Don’t forget closing costs like legal fees 2x and/or realtor costs plus holding costs like property taxes, insurance, utilities etc. BC & ON now has a land transfer tax but yes in Alberta you may make 10-25,000 on a $500,000 house. Keyword: may.

Bon chance !!


Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor www.prestprop.com

 

[Golda]

That's okay to be skeptical as the Industry is very niche-based within Canada I would say in comparison to a country like America. Yes, I am aware of the process and the costs associated before a deal is fully closed as I have done my due-dellgince when it comes to research and I've reached out to an extensive amount of credited professionals within Edmonton and the surrounding areas. Thanks for the good luck wishes.

Kind Regards,
Golda

 

[Thomas Beyer]

To be successful as a wholesaler you need

A) cash to close fast without a mortgage
B) knowledge of what is true market value ie deep deep knowledge of certain asset types (say THs, duplexes, acreages, suited home, bungalows or SFH) in a few sub-markets
C) ability to judge deficiencies fast and the cost to fix it
D) ability to fix these deficiencies fast & cost effective ie a handy talent or a deep network of reliable trades
E) be a realtor to save on commission on resale or have a list of ready buyers

As such it is a very senior strategy usually achieved only after many years in a certain market - not (!!) a beginner strategy.

I did try it myself many years ago and realized it’s not worth the time & effort. I bought multi family assets instead and have done quite well.

Bon chance !!

 

[Golda]

Thanks so much for your insight Thomas will definitely take your tips and experience into consideration for this sector!

Best Wishes

 

[Matt Crowley]

Hi Golda,
I second everything that Thomas has said above. Not a rookie strategy. This is more appropriate as a fund strategy with mega buying power. There are platforms in the U.S. right now that will buy houses sight unseen and flip it.

Americans Are Buying Homes Sight Unseen: Here’s Why

What if you could buy or sell your home on a smartphone app?

www.forbes.com

There are lots of U.S. strategies that don't graft well into Canada. For one thing, we have ~8 investable markets for a large investor across the entire country and many of those locations are geographically disbursed. We have the same population as the state of California, for example.