Flipping Houses For Profit
Flipping a house means buying and then selling it quickly while attempting to turn a profit Flipping houses can be done different ways each of them can be very profitable if you know what you are doing, otherwise it can be very expensive lesson. The name of the game is to find deep discounted Real Estate, which may or may not require any renovations or upgrading.
Buy Fix and Flipping house for Profit
Likely the most common form is the tried and true “fix and flip”. This involves picking up a property at a discounted rate, doing the necessary work to get the property up to acceptable standards, and then selling the home. You can set yourself up for failure if you underestimate the cost for upgrading and repairs or do not consider the cost of marketing with a Realtor, carrying cost and closing cost etc.
Assignment - For Instant Profit
The fix and flip is a very popular method of doing business, and that means there are a large number of Canadian professional real estate investors looking for run down properties. If you can get a property at a relatively good bargain, you can turn around and immediately sell the home to another Canadian professional real estate investor who is willing to spend the money, do all the work. You can make several thousand in this manner on each sale. While the number is small, you can quickly see how it would add up after quickly reselling multiple properties.
Flip House 'As Is" After Buying
Not every one is good at fixing up the houses or spending money to do some upgrades. If a house is in sellable condition and requires little immediate maintenance work then you can consider just selling it “as is”.
Buy It, Refinance & Lease Option
Instead of tossing the property for all cash right away, you can refinance the property at current market value. Be careful and get all the homework done ahead of the time. Lot of Canadian lenders will allow refinancing after 3 months of acquisition. You can turn around and sell the real estate investment on a lease, with option to buy. Any rent payment that you make from your renter (buyer, hopefully) can be used to handle the mortgage payments. This way, when the tenant goes for the option to purchase you’ll end up reaping a larger profit – mainly because you don’t have to pay a broker fee.
Flipping houses can work extremely well, so it is only a matter of determining what works best for your real estate investment strategy and your overall goal.