Top 10 Reasons Why flip flops in Canada will determine your profit or loss in your next deal. Fixing and flipping properties in Canada is a very profitable business. You want to understand how to acquire flip flops at the right price. Unfortunately it is not that simple. Most of the profit is made upon the purchase. There are several ways of flipping properties. Nothing down works the best, which doesn’t need credit cash or qualifications.

Canadian real estate boom

When the house prices are rising anyone can make money. Only Professional Real Estate Investors know how to buy properties pennies on a dollar. One can learn from fellow Canadian real estate experts with proven records. Speculation and gambling is a shrewd strategy for real estate investments. Pre-construction and rental guarantees can backfire when the price of the home starts dropping. March 2017 an average detached house went up 33% of its value which means approximately $400,000 appreciation in 1 month. Alas! April 20, 2017 new laws were introduced to cool down the real estate market in Canada. From April 20 to the end of August 2017 the average detached house dropped by $388,000 according to Toronto Real Estate Board. Most buyers and sellers got caught between March and August where a few made huge profit and others lost big time.

Most Canadians watch flip flops TV shows in 30 minutes or less. The truth is an average home will take 6-12 months before you make a profit. Rarely will they ever show that someone has lost their shirt fixing and flipping houses. Just like any other business you need to acquire property at a discounted price, fix or renovate within budget and time frame. Reselling can take 60-120 days. Carrying cost, repairs, maintenance, utilities, taxes and insurance are also part of expenses which can affect your profit or loss.

Here are the top 10 reasons why flip flops in real estate

1. Acquiring deep discounted real estate deals:

   This will determine if you’re going to make money or lose it. At professional real estate investors group (PREIG) Canada one can learn how to buy Canadian real estate pennies on a dollar. You will rarely find a deep discounted property through a realtor, MLS, foreclosure or power of sale in Canada. These secrets and strategies to buy discounted properties are very little known information for the average investor. Most investors rely on speculation, gambling paying down the mortgage or long term buy and hold.
   

2. AACI (Accredited Appraiser Canadian Institute) appraisal:

   Professional real estate investors always like to get an appraisal of every property they acquire. Make sure that you get it’s current market value in as is shape and also an appraisal of the after repair value. Realtors are great to get comparable market analysis but they do not have enough credentials to evaluate the property value based upon land cost, building cost, replacement cost. Saving nickels and dimes will cost you more money, it’s better to always get an AACI appraisal.
   

3. Wholesale or Fix & Flip:

   Professional real estate investors are in the real estate business to make a profit. Sometimes it makes sense to wholesale a property even for a small quick profit rather than fixing and flipping it. Both strategies have pros and cons it is entirely up to the individual investor to use either strategy to their benefit. Wholesaling provide you quick silver without any investment, credit, job history, or bank qualifications. On the other hand fix & flip requires cash, money, time and dealing with a lot of challenges. You will learn more by attending the upcoming Canadian real estate investment strategy apprenticeship.
   

4. Buying properties which need cosmetic changes:

   Fix & Flip can be exceptionally profitable when a property just requires cosmetic changes. On the other hand getting building permit, structure changes or any other major rehab can cost you a fortune. If you are a newbie investor, cosmetic changes are the best way to rehab a property for large profits in short periods of time. Cosmetic changes mean cleaning up, painting, and minor upgrades to kitchen and washrooms only. Carpets or laminate flooring is also part of cosmetic changes.
   

5. Recognizing a great property:

   Investors like to buy ugly house in the best neighborhood instead of the best house in an ugly neighborhood. Before acquiring a property investors should know the current market trends which means how many properties are available and how long it takes to sell. There are great bargains in slum neighborhoods which can be a challenge to resell. Make sure you rely on the facts rather than opinion.
   

6. Remodeling general contractor:

   Make sure your contract is registered and licensed contractor with liability insurance. Ask them to produce a copy of a worker safety insurance board certificate and you want to see their last 3 projects. Make sure your contract understands the building codes and work with the current zoning by-laws.
   

7. Building permits:

   In Canada most renovations, additions or any changes to the structure requires a proper building permit. Obtaining a building permit and following the laws of the land will keep you in the business for a very long time. Illegal basement apartments, renovations could cause grief and future liability. Apart from getting a building permit it is important to obtain a final inspection report stating the work is completed as satisfied. Building permits do not cost too much money and neither are they time consuming.
   

8. Cost of renovation:

   No matter how good you are, the cost of fixing and flipping can never be predicted 100% since you are going to open a can of worms. Older houses have all kinds of issues including wiring, plumbing, insulation, structure as well as heating and ventilation. Older houses shall only be acquired for cosmetic changes. Make sure you have an extra 25-50% more budget for material and labor to be on the safe side.
   

9. Cost of hard money lending:

   Most investors will borrow all 100% of the money to fix & flip properties. Mortgage broker fee, appraisals, inspections, legal fees, discharge fees, renewal fees can cost a huge amount of money. Even though you’re able to write off all the interest payments one must keep in mind that it’s also a major expense in our business.
   

10. Time management:

    In flipping houses time is in essence. The more time you spend, the less profit you will make. Markets tend to change overnight. Always try to target to sell the properties in Spring to get the most money. Winter and Christmas time is not the best time to sell your real estate.
    

Learning from Fellow Canadian real estate experts with proven record will help you make more money in a lot less time rather than doing it yourself and making a lot of mistakes. Stay away from celebrities who pretend to know it all. Learn the business in the most practical way of being in the trenches. Eyewitness training are the eye best to see the real deal in real time.