All Forum Posts by: Account Closed

Georgian Bay, Hamilton, St.Catharines

Is your wholesale business a corporation? It’s a lot more difficult for the corporation to qualify for the property unless you’ve established the business already unless it’s 5+ doors. 

Make sure you always have an exit strategy. Ensure you have assignable, lawyer review although that should be in the contract, home inspection all these will save you in need of exiting the contract.

Do not proceed with waving any conditions ever unless you are confident you can get financing for the deal.

Hopefully you’ve already created your buyers list. Not sure exactly the process in the states but Canada most conventional lenders will not fund an assignment fee so you would have your lawyer draw up a assignment for your buyer in which he would agree to pay you outside of the sale of the home purchase of X amount.

Be safe and always have an exit clause

@Kenneth Garrett I really appreciate your feed back. And breaking things down as there are very few properties that fit that 1% rule.

I’m trying to figure out because I’m second guessing myself and over analyzing things.

When it comes to the 1% rule do I run my numbers off the purchase price or what I own in the mortgage?

For example. I purchase a property for 100,000 with 20% Down brings me to $80,000 mortgage. Do I apply the 1% rule to my 80k on on the purchase price of 100k.

Thanks