1. First thing, you must understand and accept that Flipping is not as easy as it sounds or appears on TV shows.
2. Flipping will give you financial independence but it is unlikely that you will become rich in one or two such deals.
3. You should be prepared to spend time, Flipping a property is a business and a successful business needs your attention and time. Finding properties that are good values and right for flipping requires a great deal of time and effort.
4. When it comes to knowledge-you should always act like a sponge-always eager to absorb new knowledge and information.
5. Learn everything about the local area where you would like to buy but do not give up your daily job.
6. If you are a handyman with fine skills, it will help. In any case, you should have easy access to experts in the field of finance, accounting, legal, renovations and interior design & D?cor and real estate brokerage.
7. You should have access to present and past sales data of properties in the area where you are considering to buy.
8. If Flipping would involve renovations before a property can be sold, you should be able to get realistic estimates of time and costs involved in renovating different sections of a property.
9. You should be able to assess the value of the property and not entirely depend upon the asking price or the listing price of a property. Such reliance can cost dearly and can eat into profits.
10. You should have patience to wait and the ability to react when a right property comes in the market.
11. You may not be able to buy or it may be too expensive to buy in most desirable areas of the town, nevertheless, based on your budget, look for properties in the best location and surroundings with amenities demanded by the buyers.
12. Properties in high demand and with a potential should be preferred over the properties with less desirable features even when they appear to be better financial deals. In a declining market, better feature properties will still sell and take a less time to sell.
13. Know the builders and their reputation. While in a hot market everything will sell, in a soft and declining market, reputation of the builder can make the difference.
14. Watch the market trend. You need to be on the right side of the market.
15. Unlike the stock market, real estate market does not respond right away to the economic developments. More often, real estate market activity lags by 60 to 90 days, allowing intelligent and nimble investors time to exit or enter the market.
16. Unlike Dow Jones, there is no daily index to watch for your local real estate market. You will need to depend upon your own business acumen or expert advisers. Most often, by the time strength or weakness of the real estate market hits the papers, it is often too late for the novice real estate investors.
17. Ability to Correctly forecast the market, i.e. how the market will be when you get the possession of the unit/property, will increase your profits and save you from trouble.
18. You should have access to full deposit money, preferably your own money, without stretching your credit limits.
19. If you are going to get a mortgage, talk to several financial institutions to know your options. Preapproval will help but you will have to re-qualify for the mortgage at the time of closing the sale.. Your financial status should be the same or better at the time of closing of the sale. Any negative report on your credit rating can have serious impact and you may be denied the mortgage.
20. You should be able to raise, if needed, funds to handle any surprises. The buying process should not strain your day-today living or your lifestyle.
Author Resource:-
Nawel K Seth is the broker of Record of Trail Blazers Realty. He has been in the Real Estate Brokerage industry for almost 40 years. He holds multiple Post graduate degrees from reputed University of Toronto and can be reached through any of his websites. Trail Blazers Realty, the developer of the website www.FlipCondos.ca , has its offices in Markham, GTA Toronto, Ontario, Canada.
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