Wholesaling properties in Canada is a popular real estate investment strategy. Are you familiar with the concept of wholesaling?
If not, this involves finding and contracting a property at a discounted price, and then assigning the contract to a buyer for a profit. This can be a great way to get started in real estate investing without the need for significant capital or credit. In this article, we’ll explore the basics of wholesaling properties in Canada and how you can be your own “bird dog”, a term often used to describe wholesalers. The term “flipping the paper” is also commonly used in association with this concept.
To elaborate a little bit further, wholesaling properties is the process of finding and contracting a property at a reduced or discounted price, and then assigning the contract to a buyer for a profit. This allows you to make money without actually purchasing, or closing on the property yourself. Wholesaling can be a great way to get started in real estate investing because it doesn’t require the sizeable capital you’d otherwise need to purchase and close on a property yourself.
How to get into wholesaling properties in Canada?
You can be your own “bird dog”, which essential means someone who scouts out deals for real estate investors. As a bird dog, you can help investors find properties to purchase or wholesale. Here are some tips for being your own bird dog or a wholesaler in Canada
BUILD UP YOUR NETWORK: You’ve probably heard the term, “your network is your networth” and this is absolutely true when it comes to wholesaling. The first step in becoming a bird dog is to build your network. You’ll need to connect with other real estate investors, real estate agents, and property owners. Attending networking events and joining local real estate groups is a great way to start building your network.
MAKE SURE YOU UNDERSTAND THE MARKET: To be a successful wholesaler, you need to understand the real estate market in your area. You’ll need to know what properties are selling for, what areas are hot, and what types of properties are in demand. When you are as bird dog, in many cases, you could be looking for homes in need of a little TLC, could be distressed, or the owner is in a difficult situation due to death, divorce, loss of employment, or even a natural disaster. That is why they would be willing to sell their property to you, for below market value.
USE ONLINE RESOURCES: There are many online resources available to help you find properties to wholesale. Websites like MLS, Realtor.ca, and Kijiji are great places to start your search. You can use social media platforms like Facebook and LinkedIn to connect with property owners and real estate investors. There are some sites that specialize in in off market deals, and you can even score some just by driving around various neighbourhoods to see if any homes appear to be in a state of disrepair.
LEARNING HOW TO ANALYZE DEALS: To be a successful bird dog so you can wholesale properties in Canada, you’ll need to know how to analyze deals. This means understanding how to calculate the potential profit from a property and what factors can impact the final sale price. As with any kind of investment, there is always a measure of risk, but if you know what you’re doing, you’ll be taking calculated risks to decide if you should move forward or not.
BUILDING RELATIONSHIPS WITH PROPERTY OWNERS: To find great deals so you can wholesale properties in Canada, you’ll need to build relationships with property owners. This means reaching out to property owners directly and building rapport with them.
POPULAR BIRD DOG TECHNIQUES
* Direct Mail Campaigns such as “we buy houses for CASH
* Auto Dialers
* Public Databases (MLS, Divorce, Deaths)
* Cross Referencing Information
* Lay Offs in a Community
* Dropping House Values (could mean home owners are under water with their mortgage)
* What For Signs (builder, private, vacant lots or houses)
PERSISTENCE PAYS OFF; Wholesaling can be competitive, so you’ll need to be persistent. This means reaching out to property owners regularly and following up with them. You’ll also need to be persistent in your negotiations with potential buyers to ensure you get the best deal possible. The “fortune is in the follow up” and while this may seem daunting in the beginning, if you can develop a sound system to connect with property owners regularly, it will pay off in the long run.
In conclusion, wholesaling properties in Canada can be a great way to get started in real estate investing. As a bird dog, you can help investors find properties to purchase or wholesale. To be successful, you’ll need to build your network, understand the market, use online resources, learn how to analyze deals, build relationships with property owners, and be persistent. With the right approach and mindset, you can be your own bird dog and find great deals for real estate investors.
Are you in the market to buy, sell or invest? Let’s chat! I can be reached at 647.896.6584, by email at info@serenaholmesrealtor.com or by filling out this simple contact form.
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