How To Wholesale Real Estate In Canada: Step-By-Step (2024)

Investing in real estate can get overwhelming, but it doesn't have to. If you've been thinking about diving into the Canadian property market, wholesaling might just be the perfect entry point for you. It's a strategy that's especially great for beginners because it doesn't require a ton of capital or experience. If that sounds like something you’d be interested in, you've landed in the right spot because this guide is going to walk you through everything you need to know about how to wholesale real estate in Canada. We'll cover topics like:

• What Is Wholesaling Real Estate?
• How To Wholesale Real Estate In Canada (9 Steps)
• Is Wholesaling Legal In Canada?
• How Much Do Real Estate Wholesalers Make In Canada?
• Do You Need A License To Wholesale In Canada?
• Is Wholesaling In Canada Easy?
• Final Thoughts On Wholesaling In Canada

Do you want to know how to be a real estate wholesaler? Learning how to wholesale real estate in Canada is just the beginning. Schedule a FREE Strategy Session with us to learn how our Ultimate Investor Program can unlock even more opportunities and strategies in your market. Don't miss out—take the next step toward maximizing your investment potential today!

*Before we begin our guide on how to wholesale real estate in Canada, we invite you to view our video on How To Wholesale Real Estate Step by Step (IN 21 DAYS OR LESS)!

Host and CEO of Real Estate Skills, Alex Martinez, provides a comprehensive, step-by-step guide for beginners to start wholesaling real estate!

What Is Wholesaling Real Estate?

Wholesaling real estate is an underappreciated real estate investing strategy where an individual, known as a wholesaler, puts a contract in place to purchase a property and assigns it to another buyer for a profit. More often than not, this involves finding undervalued or distressed properties, negotiating purchase agreements, and connecting sellers with investors looking for lucrative deals.

It is worth noting, however, that wholesaling can be done in at least a couple of ways. The two most common methods of wholesaling in Canada are contract assignment and double closing:

• Assignment Of Contract: The wholesaler finds a motivated seller and signs a purchase and sale agreement for the property at a discounted price. This agreement often includes an "assignment clause," giving the investor the right to transfer their equitable interest in the home to someone else. Upon signing the contract, the wholesaler gains an equitable interest in the property—they gain the right to enforce the contract and assign it to another party. The wholesaler then finds an end buyer—usually an investor—interested in purchasing the property. They assign their contractual rights to this buyer for an assignment fee, which is essentially their profit. The end buyer completes the transaction directly with the original seller. The wholesaler receives their assignment fee upon closing without ever owning the property. 
• Double Closing: The wholesaler purchases the property from the original seller. This requires the wholesaler to have financing in place to buy the property, even if only for a short period. The wholesaler then sells the property to the end buyer at a higher price. This sale often happens on the same day or within a short timeframe after the first closing. Wholesalers often use short-term loans, known as transactional funding to finance the first purchase. Both transactions need to be carefully coordinated to ensure that the funds from the second closing can be used to pay off the transactional funding from the first.

Wholesaling is often hailed as one of the best real estate exit strategies for those looking to break into the industry. The proverbial bar is relatively low, meaning you don't need a mountain of cash or a lot of experience to get started. Subsequently, the risks and costs are a lot lower than those of other exit strategy counterparts.

If you intend to wholesale real estate in Canada, keep a few critical points in mind:

• Legal Compliance: Real estate laws can vary widely from one province to another. You must make sure all of your agreements and transactions are compliant with local regulations. If you aren’t sure, feel free to consult an experienced attorney.
• Transparency: Exercise transparency at every turn. Being transparent not only builds trust but also aligns with ethical standards. Clear communication ensures that sellers, buyers, and other stakeholders are all on the same page.

By minding due diligence, you can confidently wholesale in Canada without always having to look over your shoulder.

Why Wholesale Real Estate In Canada?

If you've been thinking about investing in real estate in Canada, there's no better time than now. The market is full of opportunities, making it ideal for both new and seasoned investors.

As recently as August, national home sales climbed by 1.3% compared to the previous month, according to the Canadian Real Estate Association. This uptick signals that the market is gaining momentum, with more buyers and sellers jumping in. Plus, with a 1.1% increase in newly listed properties, there's a wider array of options to choose from, giving you the chance to find that perfect deal.

More importantly, home prices appear to have stabilized. The MLS Home Price Index was relatively unchanged month-over-month but down 3.9% from last year. The median sales price also held its ground, increasing 0.1% year over year. Investors can plan their strategies without worrying about sudden price swings in a stable environment.

As interest rates decline, market activity is picking up. Lower interest rates can encourage more sellers to put their properties on the market (since they can turn around and take advantage of “lower” rates), opening up additional opportunities for wholesalers.

All in all, it's a fantastic time to get into wholesaling real estate in Canada. The convergence of market activity, stable prices, and declining interest rates make for a great opportunity. By learning how to wholesale real estate in Canada now, you're positioning yourself to tap into these trends and build a successful business.

Wholesaling Real Estate Pros & Cons

Before you dive into wholesaling real estate in Canada, it's important to weigh both the upsides and the challenges. Knowing the pros and cons ahead of time will help you make informed decisions and set realistic expectations. By understanding what you're getting into, you'll be better prepared to navigate the market and increase your chances of success. Now let’s dive in.

Pros Of Wholesaling Real Estate In Canada

There are plenty of benefits to wholesaling real estate in Canada, not the least of which include:

•  Low Barrier To Entry: You can start wholesaling real estate in Canada with minimal upfront costs, making it an “easier” way for new investors to enter the property market.
•  Dynamic Markets: Cities like Toronto and Vancouver have great real estate markets, offering plenty of opportunities to find and assign profitable deals.
•  Clear Legal Framework: Canada's regulations on contract assignments provide a straightforward path for wholesaling as long as you comply with provincial laws.
•  Strong Networking Opportunities: The Canadian real estate community is well-connected, allowing you to build valuable relationships with investors, agents, and other professionals.
•  Potential For Quick Profits: Wholesaling lets you earn profits relatively quickly without needing to hold onto properties long-term or invest significant capital.
•  Minimal Risk Exposure: Learning how to wholesale real estate in Canada the right way can significantly limit one’s exposure to risk.

Cons Of Wholesaling Real Estate In Canada

There are plenty of drawbacks to wholesaling real estate in Canada, too:

•  Regulatory Challenges: Some provinces have strict rules around assignments and wholesaling, so you need to be diligent about legal compliance to avoid penalties.
•  High Competition: The popularity of wholesaling in Canada has grown, leading to increased competition and making it tougher to find great deals.
•  Due Diligence Demands: Real estate transactions here often require thorough due diligence, which can be time-consuming and demands attention to detail.
•  Market Volatility: Economic shifts and changes in the housing market can impact the availability and profitability of wholesale deals.
•  Skepticism From Sellers & Buyers: Some people may be unfamiliar with wholesaling or view it skeptically, so you'll need to work harder to build trust and credibility.

*For in-depth training on wholesaling real estate in Canada, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

How To Wholesale Real Estate In Canada (9 Steps)

Here's our simple step-by-step process that has proven to wholesale real estate in Canada successfully:

1. Partner With A Wholesale Mentor
2. Learn Canada Real Estate Wholesaling Laws And Contracts
3. Understand The Canada Real Estate Market
4. Build A Cash Buyers List
5. Find Motivated Sellers And Distressed Properties
6. Put Distressed Properties Under Contract
7. Assign Contracts To Cash Buyers
8. Close Deal And Collect Assignment Fee
9. Double Close When Necessary

Partner With A Wholesale Mentor

Wholesaling real estate in Canada can seem a bit overwhelming, but you don't have to tackle it all by yourself. One of the smartest first steps you can take is to team up with a mentor who's already achieved the success you're aiming for. After all, why reinvent the wheel when there are folks who've already figured out what works?

There are plenty of experienced wholesalers in Canada who've been navigating the market successfully for years. They've faced the challenges, learned the ropes, and developed strategies that really get results. You can tap into a wealth of knowledge without having to go through all the trial and error yourself.

A good mentor can share their opinions on finding the best deals, negotiating with sellers, and understanding the legal aspects unique to the Canadian real estate scene. They'll help you avoid common pitfalls and lower your learning curve, saving you time and money in the long run. Plus, having someone to guide you can boost your confidence and keep you motivated.

Here at Real Estate Skills, we believe wholeheartedly in the power of mentorship. We've seen how partnering with seasoned wholesalers can transform a newcomer into a confident investor ready to make successful deals. Our mentors aren't just coaches; they're active professionals who stay up-to-date on market trends and strategies.

Remember, every expert started somewhere. By learning from those who've already walked the path, you're setting yourself up for success in wholesaling real estate in Canada. So don't hesitate to reach out, ask questions, and establish partnerships with people who can help you achieve your real estate goals.

Learn Canada Real Estate Wholesaling Laws And Contracts

Understanding the legal landscape is crucial when you're looking to wholesale real estate in Canada. Each province has its own set of regulations, so it's essential to familiarize yourself with the laws that apply to your specific area. Knowing the ins and outs of these laws and the necessary contracts will help you operate confidently and legally.

Provincial Regulations

Real estate laws in Canada differ from province to province—what's legal in one province might not be in another. For example, Ontario has specific regulations regarding contract assignments that differ from those in British Columbia or Alberta. To wholesale effectively, you must research the rules in your area. Also, don’t be afraid to take it further and consult a real estate lawyer.

Equitable Interest

When you enter into a seller's purchase agreement, you gain an "equitable interest" in the property. This legal concept allows you to assign the contract to another buyer. However, the assignment must be handled correctly to comply with Canadian laws. Ensure your contracts include clear clauses allowing for assignment and outline any fees or conditions involved.

Disclosure and Transparency

Transparency is paramount when learning how to wholesale real estate in Canada. You're required to disclose to all parties involved that you're wholesaling the property. This means informing the seller that you intend to assign the contract and letting the end buyer know the terms of your original agreement with the seller. Full disclosure helps build trust and keeps you on the right side of the law.

Key Contracts To Know

• Purchase & Sale Agreement: This is the initial contract between you and the seller. It should include all the terms of the sale, including the purchase price, closing date, and any conditions. Importantly, it should have an assignment clause that gives you the right to assign the contract to another buyer.
• Assignment Agreement: This contract is between you and the end buyer. It transfers your rights in the original purchase agreement to the new buyer. The assignment agreement should specify the assignment fee and any other terms relevant to the transfer.
• Non-Disclosure Agreement (NDA): Sometimes, you might want the end buyer to sign an NDA to protect sensitive information about the property or the deal.

When all is said and done, learning the legal aspects of how to wholesale real estate in Canada is non-negotiable if you want to succeed. Remember, knowledge is power—arm yourself with the right information to make your wholesaling journey successful.

Understand The Canada Real Estate Market

When you're figuring out how to wholesale real estate in Canada, getting to know the local market isn’t an option—it’s a requirement. Each region—from bustling cities like Toronto and Vancouver to quieter towns—has its own unique trends, economic factors, and regulations. By diving deep into the specifics of the area where you intend to invest, you can spot the best opportunities and make smarter decisions.

Here are some key market indicators to keep an eye on when wholesaling real estate in Canada:

• Housing Supply & Demand: Understanding the balance between how many homes are available and how many buyers are looking is important. In areas where demand outpaces supply, properties tend to sell faster, which is great news for wholesalers aiming for quick turnovers.
• Average Property Prices: Knowing the typical property prices in your target area helps you identify undervalued homes that could be profitable. It also assists in setting realistic expectations for your assignment fees.
• Days On Market (DOM): This metric tells you how long properties usually stay listed before selling. A lower DOM indicates a hot market, meaning you can close deals more rapidly.
• Economic Indicators: Factors like employment rates, population growth, and local business developments can influence property values. A thriving economy often leads to a robust real estate market, providing more opportunities for wholesalers.
• Local Real Estate Laws & Regulations: Canada's real estate laws can vary by province and even by city. Understanding zoning laws, assignment contract rules, and other regulations ensures you operate legally and avoid potential pitfalls.

When you pay special consideration to these indicators, you'll be better equipped to find great deals and attract investors. Understanding the specifics of the Canadian real estate market not only boosts your confidence but also positions you as a knowledgeable professional. This insight is key when learning how to wholesale real estate in Canada successfully, helping you build trust with sellers and buyers alike.

Build A Cash Buyers List

The fourth step in learning how to wholesale real estate in Canada is building a strong cash buyers list. A cash buyers list is essentially a database of real estate investors who have the funds readily available to purchase properties quickly. These buyers are crucial to your success as a wholesaler because they allow you to assign contracts and close deals without the delays that come with traditional financing.

To grow your cash buyers list, start by networking at local real estate events, connecting with investors on social media, networking at auctions, and leveraging real estate investment groups. You can also create landing pages or ads to capture the contact information of interested buyers. Over time, you'll develop a network of reliable cash buyers eager to take advantage of the properties you find.

Managing this list is just as important as growing it. Make sure to categorize buyers by their investment criteria, such as the types of properties they prefer, their price range, and the locations they’re interested in. This helps you quickly match a property with the right buyer, streamlining the process.

A well-organized cash buyers list enables you to wholesale properties faster and at a larger scale. Instead of scrambling to find a buyer every time you lock down a deal, you can immediately reach out to your list and start negotiating. This efficiency is key to scaling your wholesaling business, allowing you to close more deals and grow your profits.

Find Motivated Sellers And Distressed Properties

Now that we’re nearly halfway through the process of learning how to wholesale real estate in Canada, it’s time to start looking for properties to wholesale. You might be wondering why this step comes only now, but it’s important to have your foundation in place first. By building a cash buyers list, partnering with a mentor, and understanding the legal landscape, you set yourself up for smoother transactions when you actually find a property to wholesale.

Finding motivated sellers and distressed properties is key to wholesaling successfully. These are often property owners in tough situations who are eager to sell quickly, giving you the opportunity to secure deals at a discount. Here are several strategies to find these types of properties in Canada:

•  Start by identifying homeowners facing financial difficulties, such as unpaid property taxes or IRS tax liens. Helping them avoid a government auction by clearing their debts can be a win-win. Not only does this save their credit score, but it also allows them to take control of the property before it goes to auction.
•  Real estate auctions are another source. Many auctions are initiated by lenders looking to recover the loan balance. By paying off the loan and any fees before the auction, you can satisfy both the lender and the homeowner while securing the property at a discount.
•  Obituaries and probate listings, while sensitive, can also be useful. Heirs may want to sell their inherited properties quickly to close the estate. Probate lawyers can often connect you with motivated sellers in these situations.
•  Bankruptcy cases present another opportunity. Property owners facing bankruptcy may be forced to auction their real estate. Reaching out to their lawyer with a pre-auction offer can be a lifeline for them while giving you a great deal. Building relationships with bankruptcy lawyers for future leads can also be helpful.
•  City and county property inspectors often know of properties with multiple code violations. Owners of these homes, which may need extensive repairs, are typically eager to sell fast. Networking with inspectors can give you an edge in finding these deals.
•  Properties with multiple liens or those listed For Sale By Owner (FSBO) often indicate a motivated seller. FSBO homes are frequently overpriced or in need of repairs, making them ripe for wholesaling. Don’t overlook expired MLS listings either; many times, these properties didn’t sell due to poor condition or bad pricing, presenting another opportunity for you to secure a deal.

By leveraging these strategies, you'll be well on your way to finding distressed properties and motivated sellers, helping you wholesale real estate in Canada with confidence and success.

Read Also: Finding Motivated Seller Leads: Free & Paid Tactics

Put Distressed Properties Under Contract

The sixth step in learning how to wholesale real estate in Canada is putting a distressed property under contract. This is where things get serious, as the contract solidifies your control over the property, allowing you to assign it to a buyer for a profit. But before rushing to sign anything, you need to make sure your numbers are spot on.

First, you’ll need to calculate the After-Repair Value (ARV), which is the estimated value of the property once it's fully renovated. This number is crucial because it sets the upper limit for what the property could sell for on the market after repairs are made. To determine ARV, look at comparable properties in the area that have sold recently, paying attention to similar square footage, features, and conditions.

Next, you’ll need to estimate repair costs. Walk through the property (or send an inspector) to identify any repairs or renovations needed. Make sure to include everything—from structural fixes to cosmetic upgrades. Having an accurate estimate ensures you're offering a fair price and leaves room for both you and the end buyer to profit.

Once you have your ARV and repair costs, it’s time to use the Maximum Allowable Offer (MAO) Formula:

MAO = (ARV x 70%) - Repair Costs

This formula helps you determine the highest price you can offer while still leaving enough room for a profit.

After running the numbers and getting a clear understanding of the potential value and costs, you can confidently put the distressed property under contract. Make sure the contract includes an assignment clause, which allows you to transfer your rights to another buyer. With the right calculations and an assignable contract, you’ll be set up for a successful wholesale deal that works for all parties involved.

Assign Contracts To Cash Buyers

The next step in understanding how to wholesale real estate in Canada is assigning that contract to one of your cash buyers. The beauty of this process is that by already running the numbers—such as the ARV, repair costs, and your MAO—you can confidently present the deal to your buyers. When you can show them the potential for profit with well-calculated figures, it makes selling the deal much easier.

The assignment contract is a crucial document here. This is where you transfer your rights as the original buyer of the property to someone else—usually a cash buyer from the list you’ve built. In the assignment contract, you'll outline the agreed-upon purchase price, your assignment fee, and any other terms related to the sale.

Having a well-prepared cash buyers list, as we discussed earlier, makes this step significantly smoother. Instead of scrambling to find a buyer, you can immediately reach out to your network of interested investors. This allows you to quickly assign the contract and close the deal without delay. By tapping into this list, you’re not only speeding up the process but also increasing the likelihood of selling the contract to a buyer who’s ready to move fast.

Close Deal And Collect Assignment Fee

The final step in learning how to wholesale real estate in Canada is closing the deal and collecting your assignment fee. This is where everything comes together. After you've successfully assigned the contract to a cash buyer, the buyer takes your place in the original purchase agreement, giving them the legal right to buy the property from the seller.

At this point, the buyer and seller finalize the sale, typically at a closing or escrow office, and your role as the wholesaler is nearly done. The key part for you is the assignment fee. This fee is the difference between the price you originally agreed on with the seller and the price your cash buyer has agreed to pay. For example, if you secured the property for $200,000 and assigned it to a buyer for $215,000, your assignment fee would be $15,000.

Once the deal is finalized and the closing happens, you’ll collect your assignment fee, either directly from the buyer or through the closing process. At this point, you’ve successfully completed a wholesale deal—without ever owning the property yourself. With the right preparation, understanding of the process, and proper execution, you can consistently repeat this process to grow your real estate business.

Double Close When Necessary

Wholesaling real estate in Canada is usually more efficient when you can assign the contract directly to a buyer, but that isn’t always possible. Some sellers may not feel comfortable with you flipping the property to someone else before the deal closes, or they might have restrictions that prevent assignment. In these cases, you can opt for a double close instead.

A double closing means you, as the wholesaler, purchase the property from the seller and then immediately sell it to your end buyer—often on the same day. This requires you to briefly own the property, but the key is that you line up both transactions to happen in quick succession. You’ll use either your own funds or a temporary loan, known as transactional funding, to complete the first purchase. Then, the proceeds from the second sale pay off that initial loan.

Having the option to double close gives you more flexibility in your deals and allows you to work with sellers who are hesitant about assignments. While it’s more complex than a traditional assignment, it can help you close more deals in Canada’s competitive real estate market.

Is Wholesaling Legal In Canada?

Yes, wholesaling real estate is legal in Canada, but it's important to ensure you're following the right provincial regulations. The process typically involves securing a property under contract and then either assigning that contract to another buyer or conducting a double closing. The most important thing to remember is that transparency is key. You must fully disclose to all parties, including the seller and the buyer, that you're acting as a wholesaler.

Different provinces have their own rules around contract assignments. For example, in Ontario, you're required to disclose both the assignment itself and any fees associated with it. Not following these guidelines can result in fines or penalties. If you're wholesaling without understanding these provincial laws or failing to disclose important information, you could run into legal issues down the line.

Although you generally don’t need a real estate license to wholesale properties in Canada, it’s still wise to consult with a real estate lawyer who understands the specific laws in your province. This ensures that your contracts are legally binding and that you're operating within the framework of local regulations. By doing so, you can wholesale real estate in Canada both confidently and within the legal boundaries, setting yourself up for long-term success.

How Much Do Real Estate Wholesalers Make In Canada?

There’s no set salary for real estate wholesalers in Canada because earnings depend on a variety of factors. For one, the amount of time each investor puts into wholesaling can vary significantly—some may work on deals part-time, while others are doing it full-time. Additionally, more experienced wholesalers often have the skills to negotiate higher assignment fees than those just starting out.

That said, while there’s no universal number, many wholesalers aim to make around $10,000 per deal. This target strikes a balance between making the effort worthwhile for the wholesaler while still ensuring the end buyer sees the deal as profitable. Ultimately, how much you make in real estate wholesaling in Canada will depend on how often you’re closing deals and the size of the assignment fees you can negotiate. With time and experience, your earning potential can increase as you refine your strategies and close more deals.

Read Also: Wholesale Real Estate Salary: How Much Can You Make Wholesaling?

Do You Need A License To Wholesale In Canada?

In most cases, you do not need a real estate license to wholesale real estate in Canada. However, it’s crucial to understand the specific regulations in your province, as rules can vary across the country.

For example, in some provinces, if you’re marketing a property on behalf of someone else, you might be required to have a real estate license. The key is to ensure that you’re acting within legal guidelines and disclosing your role as a wholesaler to both the seller and buyer.

While a license isn’t typically required, working with a real estate lawyer can help you navigate the legal side of wholesaling and ensure that your contracts and practices are compliant with provincial laws. This ensures you can confidently wholesale real estate in Canada without any legal complications.

Is Wholesaling In Canada Easy?

Wholesaling is often considered one of the easiest ways to get started in real estate investing, especially in Canada. It has relatively low risk, requires little upfront capital, and involves steps that are simpler compared to other strategies like flipping or buying rental properties.

That said, "easy" is subjective. While wholesaling is viewed as a beginner-friendly entry point, it doesn’t mean there won’t be challenges. Navigating contracts, finding motivated sellers, and building a network of cash buyers can still get tricky.

This is why it’s essential to equip yourself with the right knowledge and skills. Programs like those offered by Real Estate Skills can help you master the process, ensuring you're prepared to wholesale real estate in Canada successfully and confidently.

Final Thoughts On Wholesaling In Canada

Wholesaling real estate in Canada is a powerful way to break into the property market with minimal risk and upfront capital. By following the steps outlined in this guide—partnering with a mentor, understanding the local market, building a cash buyers list, and navigating contracts—you can set yourself up for success. While wholesaling is often seen as a beginner-friendly strategy, it still requires a solid understanding of the process and an ability to navigate potential challenges.

The key to wholesaling effectively in Canada lies in preparation and education. With the right tools and knowledge, you can find motivated sellers, secure deals, and close them profitably. Whether you’re aiming to make real estate investing your full-time career or simply looking for a part-time side hustle, wholesaling provides a clear path to achieving your goals.

Do you want to know how to be a real estate wholesaler? Learning how to wholesale real estate in Canada is just the beginning. Watch our Free Real Estate Investor Training to learn how our Ultimate Investor Program can unlock even more opportunities and strategies in your market. Don't miss out—take the next step toward maximizing your investment potential today!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.