Flipping houses can be one of the most exciting and lucrative strategies in real estate investing - but only if you know what you're doing. While TV shows make it look easy, the reality is that successful house flipping requires more than just a fresh coat of paint and a quick sale.
Read on for the three secrets that seasoned investors use to consistently turn fixer - uppers into profitable ventures. Whether you're a first-time flipper or looking to sharpen your strategy, these insights will help you minimize risk, maximize returns, and navigate the market with confidence.
1. Unless it’s a bungalow, never buy a 2-bedroom house, they’re too difficult to sell even if you add a third bedroom in the basement.
2. Always expect the unexpected. You may uncover more renovations than you had planned for when opening up the house. The more seasoned of a contractor your hire, the less likely you will encounter unfortunate surprises.
3. You’ll always work harder and stress out more than you initially thought.
With these three secrets in mind, you can profitably flip homes! It will teach you what to buy, when to buy, how to best sell, how to deal with real estate agents, what upgrades are important and which aren’t necessary.
When flipping houses for profit in Canada you should keep these specifics in mind
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. If you create a budget to flip a home and use every last penny of your budget without having some emergency money, you could run into trouble. Your construction loan might not be enough to complete the job, or you may uncover unexpected issues with the home that need to be fixed. Without access to extra funds, 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.
Market Absorption Metrics
Understanding market absorption metrics is critical to your investment property success. It’s like having the ability to peak into the future.
People pay more money for a property when you sell a “lifestyle” instead of 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.
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.
Although flipping houses for a profit in Canada isn’t easy, it’s definitely possible. Please feel free to reach out to me at 905-683-7800 if you have any questions on flipping a home for a profit!
And if you are thinking about becoming a real estate investor yourself, or you are already an investor and would like to leverage your current investments into more properties, or you are looking to sell one or more of your investment properties, give me a call at 905-683-7800. You can also email me at brian@briankondo.com.
I’ll be more than happy to answer any and all of your questions and help you with all your real estate investment needs.
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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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