FLIPPING A HOUSE 

In todays market, many people consider getting into the real estate game of flipping a house.  It doesn't look difficult, as we watch the various TV shows broadcasted daily across the country, let's try and make some extra money.  Not a bad idea but just make sure you are prepared.  Do the research, calculate your budget, make sure the margins will make you money.

IS IT A GOOD INVESTMENT, WHERE TO START

Yes absolutely in the right circumstances.  There are key factors to consider, they are outlined below.   Generally a flip will require a renovation and/or tear down and/or rebuild.   These are not inexpensive, a renovation is substantially cheaper and creates more of an in and out investment because the time period to complete the renovation is less.   However in the flipping home game, you need to consider the market time it will take to renovate.  You do not want a vacant home in November or December nor the first few weeks of January.    An investment is only as good as the return on your money and the limits on the risk you are taking.   Calculated your carrying costs before you buy and take into account your monthly expenditures such as 

1. Mortgage Payment and or Line of Credit
2. Cost of Insurance and Utilities
3. Loss of Interest in the investment (downpayment) you used to buy 

THINGS TO CONSIDER TO FLIP A HOUSE

Location Location Location

This old saying comes to  light.  The neighborhood should have all of the amenities in which Canadians enjoy.   Local properties sell faster than rural unless it is the land which is of interest for revitalization and/or building a huge project.  Take into account 

1. Easy access to shopping, schools, transit,  
2. Green space for recreation, parks, community centers
3. Entertainment, Outings ie Bike, trails etc. 
4. Work Employment potential

Timing and Present Market Conditions

What time of the year will the renovation be completed, again avoid November and December Holiday season completion.  Set a time line for every step of the way and try your best to stay organized. Make sure your materials are available with easy delivery. Remember as the house sits empty it costs you money, you cannot have unnecessary and avoidable delays.    Renovations should be in an out.   If it is a tear down then the whole flip is a different situation.  Tear downs are extremely expensive and there are many variables with permits through the whole process.  They require a substantial outlay of funds. 

Find a Reputable Contractor 

One of the best ways to find a Contractor is through word of mouth referrals.  Ask your friends, clients and family for a recommendation but only if they have use the Contractor personally.  Be careful of recommendations where the companies have not been hired.  Make sure your Contractor breaks down the quotes of every entity of the job and not a one price quote fits all.  You will need to be on the same wave length especially with materials. 

You can easily shop your own materials and take advantage of the Linda Pinizzotto real estate Group relationship with various Commercial Accounts and enjoy goodwill discounts and savings.  No obligations. 

1. The accounts include 40% off paint and materials at local franchise outlet 
2. Discounts on flooring and broadloom. 
3. 20% off landscaping and materials   

Discounts and Savings simply contact us       

How do you price your Renovated Home 

You will need to discuss the values with the Linda Pinizzotto real estate Group. We will keep you  up-to-date on values during the process.  If you price too high for the neighborhood, Buyers may turn away and pricing too low may not cover your renovation expenses, time effort and carrying costs.   It is important to have a Profit and Loss Budget set out from the beginning.  There will be a cost for you to borrow the funds from the Bank whether you mortgage your home or have a line of credit.  Every day the house sits empty costs you money so you need to be prepared before you sign and buy a home with the intention to flip it.  

Determine an estimate for the overall project.  Make sure you have researched the availability of materials and products, you can't lose time while you wait for back orders.  Try to stay neutral and not too over the top customization which would only attract a certain buyer.  It can be an enjoyable experience with good rewards but you need to be prepare and systematic on how you work through the process.

Advice from Linda Pinizzotto 

Let the Linda Pinizzotto Real Estate Group represent you through the whole process from buying, funding, savings and discounts, renovating and selling.   We can work through the process and ensure you have every opportunity to have a successful project that covers all expenses, takes less time and provides excellent financial rewards.