1. Money is made at the purchase, not the sale of your flip. When flipping a house your money is made at the purchase not at the sale of the house. So, many times people buy a house with the intensions of making a huge profit only to find out that they could not make any money after all the renovations because the purchased price of the house was too high. When you purchase your property you need to be sure that you buy the house with enough money to make renovations, have carrying cost, and some buffer. N
2. Get a home inspection done on your property. By, spending a few hundred dollars on this expense you can save thousands in problems that you cannot see with your experience and limited knowledge. Foundation, Pest, mould, Etc..By, getting a full home inspection you can rest assured that you know every thing that is wrong with the property before its to late. In the offer to purchase for the house you need to make sure that you have 5 business days to have a inspection preformed, and if the inspection finds problems that are going to cost more money that you are willing to spend you can get out of the contract with no penalties and deposit is refunded.
3. Don't do the work yourself and Get a contractor with experience and have the work done quickly as time is of essence. You need to have your house flipped ASAP, so that you can get it on the market and get it sold. Some people try to do all the work on their own and this could lead to delays on work either due to lack of experience or availability of resources to finish the job.
4. Place the property 2 to 3 percent below market value. If you are looking to flip real estate and make money the objective should be to buy and sell the property as quickly as possible, so that you can move on to the next house. If you purchase a house and try to sell it for top dollar to make that extra couple of thousand dollars, and end up holding it for 6 to 8 months chnaces are you will be loosing money on this deal. Get the house on the market at a price that is going to blow the competition away, and you will sell it no matter what the market conditions are.
5. Use an experienced real estate agent Do not try to sell your house on your own. Harness the power of a real estate agent marketing and the power of the local MLS system. When you do a FSBO (for sale by owner) you are depending on people driving by your house and seeing your for sale sign, with a real estate agent you have some one actively marketing your house 24 hours to get it sold fast and top dollars as their commission is linked to the sale price of your home. Once again this will free up more time for you to look for more great deals in the market.
I hope this article has been helpful with the basics needs of flipping a house in greater toronto area. For FREE training and any kind of advise on property flipping please call Witty Singh (647) 274 7572 !