HGTV makes flipping homes look easy, fast and affordable. The truth of the matter is, flipping homes can be a high-yield investment if you know what projects to invest in and for how long. If you don’t, and you simply go off intuition, you run the risk of losing money on a very costly investment. So how do you know what to do and what not to do when it comes to house flipping?
First, you need to have a contractor you can trust, and regardless of their experience and track record, you’ll ultimately need to be the project manager if you want things to work on your timelines.
Second, you always want access to money. You don’t want to be working on a multi million dollar flip and the construction loan isn’t enough to complete the job. However, if you have access to “private money”, you could borrow what you need quickly. Make sure you have access to more money than you need ,or you can easily become the “motivated seller” you were initially looking for.
Third, to sell for the maximum amount in the least amount of time you want to understand “market absorption metrics”. These are data points that real estate agents have access to that will allow you to examine the state of the market and make predictions on where prices are headed.
Understanding market absorption metrics is critical to the success of any investor looking to flip homes. It’s like having the ability to peak into the future.
Next, people tend to pay more money for a property when you sell a “lifestyle” instead of just 3-bedrooms and 2-full bathrooms. For example, adding in a “steam option” to the shower is a huge plus. Creating a “fitness centre” instead of a typical “gym” in the home is a huge plus. This may mean connecting a bathroom with a steam room to the gym and having a dry sauna as well. Or it may mean creating a killer media centre in the basement for movies and entertaining.
The important tidbit to take away is that when flipping houses for a profit in Canada, “lifestyle design” included in your work is very valuable.
Lastly, you want to buy your property in a neighbourhood that can support higher prices. Too many people buy properties and renovate them in areas that will have difficulty in supporting the premium price they’re trying to sell at. It’s a critical mistake.
Flipping homes isn’t easy, but it can be a great investment to do!
If you have any questions on whether something is a good idea to flip, please reach out to me.
I have been a Real Estate agent for over 3 decades and have helped my clients purchase homes as their primary residence, as a Buy/Fix and Flip investment as wells as a Buy/Fix/Hold and Rent investment. I’ve also helped my clients buy builders New Construction and Inventory homes and condo’s and just about any other real estate investment out there.
I will leverage my years of experience to help you buy the perfect real estate investment property that suits you and your lifestyle.
My number is 905-683-7800. Please ask for me, Brian Kondo.
Thanks For Reading Today’s BLOG!
Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com
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