In the City of London Ontario the act of buying and flipping real estate has been refined to a fine art form. More and more people are making their fortunes in the real estate market and its a simple truth that it can be done by anyone. It takes a great plan and some money to invest, but if done right the rewards can be astounding. No other area of investment has consistently shown such a high profit margin and such a pattern of growth, in such a short period of time
So what does it take to successfully fix & flip a home? This depends on you. Are you a bit of a handyman? Or could you cut off your own finger with a spoon? If you are the latter you may want to engage the services of a contractor, it will likely save money, time and band-aids. Whether you choose to DIY or to hire someone to do the fixing aspect of this there are a few things they almost all fixer-uppers will need.
The profit is made during the buying process. You need to ensure you purchase low enough that you will have profit left over after all expenses. The biggest rookie mistake is not calculating all expenses and overpaying for the property.
Some overlooked expenses include: Land Transfer tax on the Buy, Lawyer and Real Estate agent fees, carrying costs such as interest on mortgage, heat, hydro and taxes to name a few.
The would be Flipper needs to decide if they will do a Lipstick flip (minor repairs) or a Total Gut style renovation.
In a lipstick flip paint is the most likely of these suspects. Most older homes have a somewhat neglected cosmetic makeup. A new coat of paint both inside and out can take years off a homes appearance and add nicely to its value. One place that usually needs a bit of love is the kitchen. As the highest traffic area in any home, kitchens can deteriorate faster than any other room. If you are looking for a quick way to increase you asking price, install all new appliances and redo the counter tops and cupboards. A modern and inviting kitchen is a great selling point.
It is a well known Real Estate fact that Kitchens and Bathrooms sell homes, so make sure to pay special attention in these areas.
If you have purchased a home as a "fixer-upper" chances are there are some aesthetic improvements that are going to be essential in terms of the property itself. To take care of the yard bring in a landscaper to create a new and dynamic flow for the property. New plants and flowers add a beautiful touch to a yard and can be one of the most inviting aspects of a home. The exterior of the home is critical as the "visual impact" can make or break a sale. Just remember, the new asking price must justify the improvements that you have made. So never forget to plan your improvements carefully.