Wholesaling foreclosures & Power of sale in Canada & in general

[Victor Parag]

Hi Everyone,

I took all the experts advise and partnered with an investor friendly Realtor. He has told me about a Power of Sale property.

How do I go about wholesaling a bank owned property (foreclosure/power of sale) since I cannot assign a contract.

I have read that simultaneous closing is the best way, but there is no specific explanation on how to do this.....well that i could find.

What paper work is needed with the A-B and the B-C transaction and what other paper work is needed?

Do I need to get a cash loan from a hard money lender?

I hope you can help me.

Thanks in advance

[Roy N.]

@Victor Parag

I cannot speak for all jurisdictions in Canada, but in all in which we have experience, back owned properties are always sold through a listing agent - who, by the way is only getting 1/2 - 2/3 the regular commission on the sale ... the banks stick it to everyone ;) You will also find bank owned properties in Canada are never the fire-sale deals you will see in the U.S.A. ... some of this has to do with the relative size of the markets, but most is a result of differences in banking regulations.

On top of that, every bank contract to which we've been party contains a clause whereby the buyer pledges to hold the property for a minimum period (90 - 180 days in our experience, but I've heard of longer). This is designed specifically wholesaling or a paint-n-scrub flip ... the banks don't want you and I to turn around in 30-days and sell the property for 20K more than they received for it.

@Dave Vogt

Given the scarcity of real estate agents who understand buy and hold investing, I would expect finding one with a thorough knowledge of flipping to be like finding a deposit of iridium. Of the folks I know who flip, most have someone with a real estate licence on their team for this very reason.