King City, Ontario · Member since 2016 · 6 posts · 0 votes
Hi Everyone,
We're just starting out in wholesales...We found some properties that we'd like to wholesale to flippers/rehabbers/etc, but we need some more details before we start.... Can anyone explain please exactly the process and expenses involved?
1) Do we pay a lawyer around 1000$ to put a house under contract (with all the conditions, etc)?
2) How do we know that the buyer will want the deal?
3) If the buyer declines, did we just spend 1000$ for nothing?
4) They say you need to know lots of investors to offer them wholesale. But what if none of them want the house?
This question (wholesaling in Canada) has come-up twice in the past few days. Have a look here to get started and then search the forums for "wholesaling Canada" to find prior discussions.
We're just starting out in wholesales...We found some properties that we'd like to wholesale to flippers/rehabbers/etc, but we need some more details before we start.... Can anyone explain please exactly the process and expenses involved?
1) Do we pay a lawyer around 1000$ to put a house under contract (with all the conditions, etc)?
2) How do we know that the buyer will want the deal?
3) If the buyer declines, did we just spend 1000$ for nothing?
4) They say you need to know lots of investors to offer them wholesale. But what if none of them want the house?
Any help would be greatly appreciated!
If the house is a true deal you will not have a problem to get somebody to buy it. The biggest thing is putting the right offer amount on it. If you do that and the offer is accepted you shouldn't have to work the phones for more than a half a day to get somebody to fund it or buy your contract...it sounds too simple to be true but trust me it is that simple!
A very simple way to start doing offers:
1. Find out the address of the property and find out measurements of property, building type, room count, bathroom count, etc... (google maps is good for this you can actually measure houses and properties)
2. Verify that there are at least 3 other comparables sold nearby (less than half a kilometer) that are identical looking and find out what their average selling price was (sold in the last year)
3. Make a rough estimate of renovation costs and add 15% on to that price.
4. Multiple the value from step 2 by .7 and subtract the amount determined in step 3
5. Offer that amount
i.e. 100k average sale value x 0.7 = 70k - 25k (reno estimate) = 45k purchase offer maximum.