In this video, we’re gonna talk about five house flipping tips for Canadians.
Number one, do not overpay for the property. The way you avoid overpaying is you talk to a competent realtor who is capable of getting you the after repair value or ARV for the property. And after you get the ARV, you should budget in all your soft costs, like your realtor commission, staging, insurance, legal, and all that stuff. And then you build in your renovation budget, you build in your desired profit, and you’ll get to what you will determine as your maximum allowable purchase price, right? So that’s you designing the deal from the start? And in fact, what I do one step further is I create a best case, most likely and worst case scenario, where in every scenario let’s take the worst case.
For example, I am underestimating the after repair value, I’m overestimating the renovation and I’m overestimating how long it’s gonna take to actually do the work. And in all three of those cases, all three of those cause me to lose money. If all that happens, that is the worst case scenario and the most likely scenario I accurately report what I think it’ll be for an ARV for the renovation and the timeline and the best case. I make assumptions that it’ll sell for hire it’ll renovate for less money, and it’ll be a faster renovation. So when you have all that info combined, you should be able to make an educated decision as far as what should I pay for this property and avoid paying too much tip number two, do not over renovate for the area. And I’m talking all the artists out there. The people that say, well, it would look so beautiful if, and it would look so wonderful if we had golden chandeliers, you’re probably right.
But if you’re interested in making money, you need to make sure that you put finishes in the property that are competitive to what’s in the area for the exact same type of product you have, right? For me, I like my houses to sell quick. So I like to get modern design inputs from smart people and incorporate that into my layouts and my material selection. Right? But at the same time, I make sure that I do not overspend for the area. I know there is a limit, no matter if I put solid gold countertops, I’m not gonna get that back as a return on the sale price. So tip two is, do not over renovate for the area. You’re buying the property in tip number three, sign contractors to a contractor agreement where there is a predefined payment schedule based on them completing work. One of the mistakes I see all the time is that real estate investors will hire a contractor without a contract.
So there’s no written expectations. It turns into a, he said, she said, if there’s any dispute about it. And the second thing is that the contractor does the work and then they just feel they need to be paid every two weeks because they’re there, right? And that doesn’t help you because usually your projects don’t finish on time. When the person is just getting paid every two weeks weeks, regardless of how much progress they make. So you wanna be able to take your scope of work and divide it into completion sections, where if they complete that section of the scope, they get this much money. If they complete this section, they get this much money. There’s no timeline on that. You tell them, Hey, you’ll get paid. When it’s done, not you’ll get paid every two weeks. Tip number four is stage the home. Most buyers have no vision.
They know what they like when they see it. But the problem is if you don’t stage the home, which means fill it with couches and chairs and tables and, uh, greenery and things that just make it feel like it’s already lived in people can’t see that on their own. By looking in an empty house, they need you to fill it with stuff that a normal person would live in to allow them to see, oh, this is what it would like for me to live in here. And the stats show that staged homes sell for more money than homes that are not staged all else equal and house flipping tip. Number five is get your realtor to rerun your comparables before you list the property, right? So sometimes when you flip a house, it takes six months. And sometimes the market changes in that six months.
So when you bought it and you assumed, Hey, six months from now, it’s gonna be worth this much. You want to double check that assumption and get your realtor to rerun the comparables right before you list again, to sell it, to make sure you understand what is on the market right now that I will be competing against what do the photos look like? What do the finishes look like? Where did they price themselves? Because I’ve been in situations where I bought a property and I knew I’d listed six months later at a certain price. But then when I got to six months later, I looked, and there was nothing else for sale on the market, in that area. And I thought, well, the demand is super high in this area. And I actually priced the deal higher than my ARV. And then I still got a higher sale price in a bidding war because there was no inventory, right? So you don’t wanna leave money on the table by saying, okay, well, six months ago, I thought it’d be worth this. It’s gonna be worth that today. It’s very quick. Get your realtor to rerun the comps and determine your ARV and come up with a accurate to date pricing strategy for your house. Flip my name’s Jason GRE truck with black card elite academy, please like comment, share, subscribe. If you found this valuable, because I want to keep getting information in your hands to help you achieve success through real estate or private business.
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