Hi, I am a novice investor trying to break into the field. I want to start with QuickTurn, subject to, lease to own deals, something that does not require capital or credit. However, I am finding it is really hard to find a lawyer that is willing to provide a PAID legal consultation in regards to this. Can anybody recommend a lawyer that deals with these kind of transactions? Also, any info in this regard would be greatly appreciated.
Quick turn, subject to deals
- Thread starter feya
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Only in midnight infomercials or seminars promoted by US firms does this "no credit .. no capital" flipping work in Canada !
Not in the real world !
Not in the real world !
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With respect to Thomas, it IS possible to do "no money down" or limited capital flips and purchases in Canada, but not the same way as in the USA. (Our equivalent of purchasing "subject to" is an "Agreement for Sale" for example). You'll also want to look into purchasing with a lease option.
As soon as someone mentions "subject to" in Canada, lots of alarm bells go off - 99% of people asking about that have a head full of ideas from a USA based source of information that isn't applicable here - like short sales and buying foreclosures at auction.
You don't mention what Province or city you're in, so it's not possible to give you a referral to a legal advisor.
Also:
As soon as someone mentions "subject to" in Canada, lots of alarm bells go off - 99% of people asking about that have a head full of ideas from a USA based source of information that isn't applicable here - like short sales and buying foreclosures at auction.
You don't mention what Province or city you're in, so it's not possible to give you a referral to a legal advisor.
Also:
- These kinds of transactions are complex and not well suited to beginners.
- Aside from good legal advice, you should try to work with someone who has done this before - ie, a mentor with actual Canadian experience, not a USA based seminar, book or paid mentor.
- Check out Barry McGuire's Deal-Ready Documents workshops.
Check out Tony Peters' Creative Real Estate Investing workshops.
Finding the truly motivated sellers is the hardest part. Count on it being about 100x more work than what you think it is.
Be Educated and Be Careful!
Jim, thanks a lot for such elaborate response! I am in Toronto, Ontario, so Barry's workshop, unfortunately, is not a go for me. I would love to attend it though. I am trying to find as much info as possible on canadian version of "subject to" deals or "lease to own", and finding a legal advisor and a mentor seems close to impossible. As I said, I am trying to make it work with no capital or credit, so these types of deals seem to be the ones that will work, provided I find the motivated seller.
Do you have any legal advisors in Ontario that will be able to assist me in this? Any additional info would be greatly appreciated.
Do you have any legal advisors in Ontario that will be able to assist me in this? Any additional info would be greatly appreciated.
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Just a quick tip you may find useful, get in the habit of choosing words that will further your interests, not deter from them. The word "scheme" jumped out at me. I received similar advice I found useful in that I often referred to properties as a 'house' to potential tenants, 'home' was what I should have been saying.
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[quote user=feya]Thomas, thank you for your reply, however, would you care to elaborate on this? Are you saying it is not possible to make money in this scheme? I was referring to Ron LeGrand technique and trying to make it work.
It IS possible with experience .. after you have done 3 or 4 normal deals and know a market well.
It is NOT FOR BEGINNERS !!
Get Barry McGuire's "kit" made in Canada ..
It takes a lot of work (and some money btw !!) to find such a motivated seller .. and then even more work to get a bank to approve a defaulted loan .. and then, once you have such a deal USUALLY you need some cash to
a) pay arrears (taxes, interest)
b) pay legal fees
c) fix up the place as it often needs work
d) pay for holding costs while vacant
so I'd say: 20-25K MINIMUM for this so called "no money down" deal !!
Good luck .. and report back here on a specific deal that you did (and also list the ones that "almost" worked and the time and money invested until one actually worked)
It IS possible with experience .. after you have done 3 or 4 normal deals and know a market well.
It is NOT FOR BEGINNERS !!
Get Barry McGuire's "kit" made in Canada ..
It takes a lot of work (and some money btw !!) to find such a motivated seller .. and then even more work to get a bank to approve a defaulted loan .. and then, once you have such a deal USUALLY you need some cash to
a) pay arrears (taxes, interest)
b) pay legal fees
c) fix up the place as it often needs work
d) pay for holding costs while vacant
so I'd say: 20-25K MINIMUM for this so called "no money down" deal !!
Good luck .. and report back here on a specific deal that you did (and also list the ones that "almost" worked and the time and money invested until one actually worked)
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And for the middle ground between Thomas and Jim, you do need some combination of credit or some cash (borrowed or not). They're right though, that the quick turn stuff is not for beginners. I've bought some of them before and at the end of the day you need almost no money. In the middle however, you often need to be able to lay hands on a quarter-million cash.
There's lots of other areas in the industry one can learn about and build a business with.
There's lots of other areas in the industry one can learn about and build a business with.
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If you don't have money or credit you need a lot of skill and experience to make this business work. We see all kinds of questions and interest in this type of real estate and I can count on one hand the number of investors I know that are really making a go of it. They are all pros with years of experience and they didn't start with quick-turn deals they started with fundamentals based income property purchases.
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Baffelgab Thomas,
Baffelgab!
It must be the case that you have not dedicated enough time to going to FastE Way real estate seminars and lack the POSITIVE mindset to truly integrate a wIN-WIn mutually beneficial relationship into these type of transACTIONS![quote user=ThomasBeyer]Only in midnight infomercials or seminars promoted by US firms does this "no credit .. no capital" flipping work in Canada !
Not in the real world !
Baffelgab!
It must be the case that you have not dedicated enough time to going to FastE Way real estate seminars and lack the POSITIVE mindset to truly integrate a wIN-WIn mutually beneficial relationship into these type of transACTIONS![quote user=ThomasBeyer]Only in midnight infomercials or seminars promoted by US firms does this "no credit .. no capital" flipping work in Canada !
Not in the real world !
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[quote user=RedlineBrett]I can count on one hand the number of investors I know that are really making a go of it. They are all pros with years of experience and they didn't start with quick-turn deals they started with fundamentals based income property purchases.
indeed my friend .. indeed !!
besides finding a motivated seller (which takes times and money) even more time has to be spend finding a property where the property value actually exceeds the mortgage plus interest arrears .. as many properties had a 95% CMHC mortgage and have dropped perhaps 10-15% in value from 2007 .. so it is RARE to find a deal that makes sense .. not impossible .. but rare and thus: not for a novice !!
indeed my friend .. indeed !!
besides finding a motivated seller (which takes times and money) even more time has to be spend finding a property where the property value actually exceeds the mortgage plus interest arrears .. as many properties had a 95% CMHC mortgage and have dropped perhaps 10-15% in value from 2007 .. so it is RARE to find a deal that makes sense .. not impossible .. but rare and thus: not for a novice !!
Thank you very much for your responces! I do believe in a win-win outcome and will try to make it work. However, as i stated earlier, trying to find a legal advisor is challenging. Do you have any referrals for a lawyer that deals with this kind of transactions in Ontario?