Patience goes a long way in
gymnastics. You need effort, stamina, charisma, a willingness to bend over
backwards—and you better believe you’re going to sweat. Those frontward,
rearward, sideways and upside down flips might look easy, but they certainly
don’t come easy.
But leave the leotards at home. We’re talking about the gymnastics behind flipping a house.
5 Ways to Flip a House:
1. Split Leap (of Faith)
If you have the capital but
lack the skills, you can make a deal with a friend or acquaintance who can do
the heavy lifting - literally. The only thing you’ll have to lift is your
wallet. These relationships can work, but only if trust is centric. Friend or
not, get the agreement in writing. Split the profits 50/50—that’s fair, right?
2. Dive Roll
Check local listings for
buzzwords like “handyman special”, “rare opportunity”, “investment home” for
homes in need of some tender loving care. But before diving into a
dive, have an inspector accompany you to the showing to ensure the home’s
structural integrity is still in good shape. Aesthetic renovations such as new
flooring, fresh paint, new window coverings, and updated cabinetry and
countertops won’t set you back nearly as much as rewiring a home’s electrical
system or taking apart the plumbing might.
3. Front Tuck
Curb appeal is a huge selling point in most real estate ventures.
But every now and then, you come across an exquisite home with an atrocious
exterior. It’s possible the previous owner didn’t have the funds to update the front lawn or
replace the front door (ranked the highest-yielding renovation by Remodeling
magazine with a 96.6 return on investment). It’s also possible the previous
owner simply preferred the boho-chic look. At any rate, finding an investment
home like this can mean huge opportunity for you.
4. For(eclosure)ward Roll
With some real estate brokers
listing homes without noting whether it’s a foreclosure or not, it may be
harder to spot these little gemstones from afar. However, you’ll know when
you’re dealing with a foreclosure based on the seller’s information; if the
CMHC (Canada Mortgage and Housing Corporation) is listed as the owner, the
property is clearly a foreclosure. They’re not fooling you! Just make sure the
deal isn’t more trouble than it's worth.
5. Front/Back Walkover
While a new front door is the
top-ranked reno with the highest return on investment, a wood deck addition is a close second. This update will fetch an
87.4 percent return on investment. If the front of the house, back of the
house, or even the roof has the room and the capability to support a new wood
deck, you might want to spring for it—provided you can get the property at a
good deal, of course.
Make it a Routine
Getting into real estate investment presents its own set of risks, as with
any venture out there—particularly if you don’t know what to look for. But
practice, discipline, and diligent research will help you get better at
spotting the winners when you see them.
Content courtesy of http://www.hgtv.ca
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