Wholesale Canadian Real EstateÂ in Canada is one strategy for real estate investors to make instant profit without any cash and or credit.
It is a legal strategy that maximizes investors’ advantage. With no need to arrange for a down payment, this strategy works differently to make instant profit.
What is real estate wholesaling?
Canadian real estate wholesale contracts a home (mostly a distressed home) with the seller. After that s/he finds out the potential home buyer to purchase this property at a higher price than with the seller.
The difference between the buying price and the selling price for the wholesaler is the profit they earn. Therefore, real estate wholesalers try to find distressed properties to maximize their profit.
The difference between flipping and wholesalingÂ is the assignment (flip) fee.Â The property is sold ‘as is’ by the wholesaler without undertaking any renovations or additions in wholesaling. Also, they do not carry any cost as there is no purchase of a home from the seller. A wholesaler only contracts with the distressed home seller at deploy discount and finds the party willing to buy the property at a higher price.
What is a distressed property, and who are the super panic motivated home sellers?
Distressed properties require repair, updatingÂ where the homeowner does not or cannot afford to fix it.
These properties are sold by panic motivated home sellers in distressed positions, like death, divorce, loss of job, power of sale, liens and foreclosures etc. These motivated panic home sellers are in a rush to sell their property for cash without doing any repairs and or removing the garbage. They need all the cash, fast closing.
The goal of real estate wholesalers
Real estate wholesalers find deeply discounted properties and put them under contract with an assignment clause.. There is no money exchange between the wholesaler and the seller in the entire process until a Cash buyer is ready to take over the contract.
For whom is real estate wholesaling the best strategy?
Real estate wholesaling is the best strategy for people interested in the real estate business with no money, no credit and or breaking into canadian real estate investments.
Canadian real estate wholesalers must attend apprenticeship to learn top strategies to find the deals and cash buyers.
How to succeed in real estate wholesaling in Canada?
Wholesaling in real estate is not a great strategy for everyone as it requires a lot of marketing and communication skills, commitment and patience towards the profession. Also, the wholesaler should be skilled in marketing their assets.
Finding the right kind of property to find potential investors interested in purchasing a distressed property is quite a strenuous task.
You would be willing to buy low from the panic seller to sell it high to the potential buyer.
Key to wholesaling
The key to wholesaling is adding a contingency clause to the purchase contract. It enables the wholesaler to back out of the deal if faced with finding the right buyer before the expected closing date. This limits the risk of wholesalers. Also, the capital requirement in real estate wholesaling is much lower than any other real estate business. As a result, you can work with the earnest money payments as required in few properties.
How to become a Real Estate wholesaler in Canada?
To become a successful real estate wholesaler in Canada, you must have the proper training and negotiation skills based on concrete facts. Proper training from flipping4profit.ca is the best option to become a trained wholesaler.