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Wholesaling real estate

P

pilly48

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Hello Members,



I am looking to get into wholesaling and i was wondering if any of you have tried this type of investing before? I am looking for a little feed back to help me out as i get going.



If you have experience in this field and would like to help a new investor out i would love to hear back from you.



Thanks,



Email: preston.pilgrim@gmail.com



Preston Pilgrim
 
I wholesale properties when I get too busy and I buy wholesale properties when I want more properties. (Greater Toronto Area only) Wholesaling is a business and takes time and effort. You'll need to do a lot of marketing, talk with a lot of sellers, and make lots of offers. There's more info about wholesaling in the "Canadian Quick Turn Real Estate" section of this forum. I suggest reading there. REIN has had workshops in the past on quick turn, wholesaling and marketing.
 
I have unsuccessfully tried to wholesale properties and second aaron's comments.



OTOH a good investor friend started with nothing but 30K credit card debt and wholesaling was how he turned it around and two years later is 100 K net worth. So it can definitely lead to great things.
 
thanks for the info, i just had one quick question.



If i want to wholesale in different markets that i don't live in, do i have to be there to sign all documents and contracts or can they be signed and faxed or can those tasks be done by lawyers and real estate agents? I want to wholesale in Alberta, but i currently live in BC.



Thanks again
 
In theory, I'm sure it could be done remotely using fax & email. In reality, I've never bought a house without viewing it first. I've bought houses conditionally without viewing them, but then I view and inspect the property to ensure what I think I'm getting is actually what I'm getting. It could work if you have a trusted colleague in the area who can view properties for you.

Also, presenting offers to sellers is better face to face than over the phone.

I think attempting to buy wholesale properties remotely would be a frustrating experience. I've "heard" of it being done in the US though. But I look forward to someone doing it and then sharing their experience with me!
 
[quote user=aaronmoore]In theory, I'm sure it could be done remotely using fax & email. In reality, I've never bought a house without viewing it first. I've bought houses conditionally without viewing them, but then I view and inspect the property to ensure what I think I'm getting is actually what I'm getting. It could work if you have a trusted colleague in the area who can view properties for you. Also, presenting offers to sellers is better face to face than over the phone. I think attempting to buy wholesale properties remotely would be a frustrating experience. I've "heard" of it being done in the US though. But I look forward to someone doing it and then sharing their experience with me!




I don't know if this is relevant, but most of the properties I purchased in the U.S. were sight unseen and done remotely by email and fax/scan. The first couple might have been frustrating/confusing (because of the lack of experience), but afterwards, it was pretty easy.



http://myreinspace.com/public_forums/Real_Estate_Discussion/62-17378-Canadians_Snap_Up_US_Properties.html
 
I'm very interested in wholesale real estate, but I live in Montreal,Quebec, and I don't know if that is allowed, here.



How can I find out? Also, how would I start with no money?

Who would I talk to first?

Do I need a special business licence.



I do hope you are able to answer all questions.



Thankyou.
 
I assume wholesaling real estate is allowed in Montreal. To find out, you can ask a local real estate lawyer if you can assign a contract and charge an assignment fee for assigning it. This happens frequently with new condos around Toronto... so many realtors and R/E lawyers are familiar with it.


To learn the business of wholesaling, there are various real estate gurus who can teach you. Ron Legrand is a popular one http://www.ronlegrand.com/ Maybe you can find a local wholesaler at real estate investor networks.
 
[quote user=sopat]Also, how would I start with no money?
You get money, from work, from a line-of-credit, from a credit card, from friends or from JV partners.



Buying real estate with no money works in theory, but is hard to extremely difficult in the real world. If you have special skills, say in fixing things or managing properties or in sales or in spotting opportunity, then you can get perhaps an older guy sell you his asset in exchange for you doing s.th.



However, if you have those skills, you usually have a well paying job and have cash.



[quote user=sopat]I don't know if that is allowed, here.
Why not ? You write a contract (easy), then get one accepted by a seller (not so easy), and give yourself the right to assign the contract to others, for a fee (easy), and then actually assign the contract for a sizeable fee to someone else (very difficult). What kind of license would this be to do this ?
 
"However, if you have those skills, you usually have a well paying job and have cash."



Great point Thomas!

One that sadly most people do not want to hear :)
 
People I know who have been successfully wholesaling for years do it in combination with other strategies. They have rentals and/or rent-to-owns and/or they buy-fix-sell. Wholesaling is just one way to profit. If you heavily market to buy properties, then at some point you'll come across more than you can handle. You either slow down marketing or you wholesale the properties. It's best to keep the marketing machine rolling and wholesale. You only need to know a few active investors to successfully wholesale. I work with multiple investor-buyers who I've done multiple assignments with each... the relationships makes assignments easier.

Thomas would know more about multi-family and wholesaling big buildings. I deal with single families and 2-3 units.



Wholesaling may be a good way to start before moving on to other exit strategies. But you're going to need a budget for marketing and you'll need self-confidence and other skills. It helps if you already have real estate experiences... which might help with confidence when talking to sellers and buyers.
 
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