Richmond Hill Flipping
Monday May 07th, 2018
I love to flip. I've flipped four homes in the last two years and I loved it. But people always ask me, "can you make money flipping in Richmond Hill?" Yes but it isn't like what you see on HGTV. People buying homes for $150,000, renovating them in a nicely packaged 60 minute show and selling it in 24 hours for $379,000. The Canadian market is very different than the U.S. Trying to find a home for under $400,000 in Richmond Hill is nearly impossible today.
So what's my secret? Well, I follow this formula and it seems to work for me:
1. Find a vacant Richmond Hill home - Homes that are vacant are generally in original condition and have motivated sellers seeing as they've already made their move and are now more than likely carrying two mortgages.
2. Submit a low offer - This does two things. It gets the dialogue going between you and the seller and it can chase away anyone else who may have been considering an offer.
3. Do not get emotional - This is a biggie. Stay focussed and remember this is a business transaction. Do not let your feelings get involved. If you overpay you will under profit. Stick with the numbers as they do not lie!
4. Get a quick closing date - Try to close within two weeks. And during that time get your crew ready and draw up a schedule. Have the bin ready to go. Get your demo team on board. Measure the floors and order your tiles. Have your kitchen guys measure before taking possession as a new kitchen can take up to 6 weeks and time is money in a flip.
5. Have a budget - Have everything down on paper to the last dollar and constantly look and adjust the numbers. I would spend an hour every night just staring and adjusting the numbers. If you are not organized you risk losing everything!
6. Do good work - Please don't cut corners. You are selling a home to someone who is putting their life savings into this place. Know what you're doing or hire someone who does. If you don't do good work I promise it will come back to bite you.
7. Don't get greedy - When you're done price it right, sell it quick and move on to the next one. Every day the home sits on the market it is costing you in mortgage payments, property taxes, heating, hydro, staging, bank interest etc.
If you would like more information on flipping in Richmond Hill email me your questions at mikezafiris@rogers.com
Post a comment