Comments on: Flipping Houses for Profit http://www.milliondollarjourney.com/flipping-houses-for-profit.htm Building Wealth through Saving and Investing Sun, 12 Feb 2012 07:02:44 -0330 http://wordpress.org/?v=abc hourly 1 By: Art http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-123929 Art Wed, 08 Feb 2012 18:25:17 +0000 http://www.milliondollarjourney.com/?p=978#comment-123929 I think the problems here arise from the fact that people just don't research stuff enough before jumping in. There are several parameters to consider. Its best if its your main residence. You need a place to stay. If it doesn't sell next week, no problem. Zero taxation as your primary residence. You need to be able to segregate your living. When there is work being done in one area of the house you don't go to that area unless you're working there. It takes flexibility. Living with spoiled people that have to have things "their way" won't work. Advantages: Zero tax, no commute time to work, the ability to hire cheap grunt labor for the monotonous stuff. The ability to buy demolition materials when available for pennies on the dollar. If you have a flexible schedule and a loan officer isn't breathing down your back you can buy what you want when you want. Its about freedom really. If everyone did this and had basic skills learned in school so they could quickly know an accurate appraisal of a property because of the work involved, the economy would be in a far different state. Imagine if most people were mortgage free by 30. I find that yes, you can make way more money using other people's money. But in many ways its cursed money. You don't have the same satisfaction than if you started smaller and used your own. Its like planting a seed and watching it grow. Using other people's money is like hiring someone to care and water the plant every day and not seeing the growth until its mostly finished. I just find that people that use their own money seem to enjoy their investments much more. And that's important. If you're not enjoying your investments, what are you doing it for? Just the money? That's shallow and rather unfulfilling. The people that have fun with their money - these are the real financial geniuses. Noise: If one can do most of the loud stuff together or group as much as possible together this helps greatly with your own family and the neighbors. Or send them away on vacation during the loud times! Noise is hard to live with. You can avoid dust and dirt by being physically away but noise kind of travels...lol. I think the problems here arise from the fact that people just don’t research stuff enough before jumping in. There are several parameters to consider.
Its best if its your main residence. You need a place to stay. If it doesn’t sell next week, no problem. Zero taxation as your primary residence. You need to be able to segregate your living. When there is work being done in one area of the house you don’t go to that area unless you’re working there. It takes flexibility. Living with spoiled people that have to have things “their way” won’t work.

Advantages: Zero tax, no commute time to work, the ability to hire cheap grunt labor for the monotonous stuff. The ability to buy demolition materials when available for pennies on the dollar. If you have a flexible schedule and a loan officer isn’t breathing down your back you can buy what you want when you want. Its about freedom really.

If everyone did this and had basic skills learned in school so they could quickly know an accurate appraisal of a property because of the work involved, the economy would be in a far different state. Imagine if most people were mortgage free by 30.

I find that yes, you can make way more money using other people’s money. But in many ways its cursed money. You don’t have the same satisfaction than if you started smaller and used your own. Its like planting a seed and watching it grow. Using other people’s money is like hiring someone to care and water the plant every day and not seeing the growth until its mostly finished. I just find that people that use their own money seem to enjoy their investments much more. And that’s important. If you’re not enjoying your investments, what are you doing it for? Just the money? That’s shallow and rather unfulfilling. The people that have fun with their money – these are the real financial geniuses.

Noise: If one can do most of the loud stuff together or group as much as possible together this helps greatly with your own family and the neighbors. Or send them away on vacation during the loud times! Noise is hard to live with. You can avoid dust and dirt by being physically away but noise kind of travels…lol.

]]> By: Chris http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-115573 Chris Mon, 27 Sep 2010 15:58:49 +0000 http://www.milliondollarjourney.com/?p=978#comment-115573 I have not done any flips but I am getting ready to. I have 30 years of real estate experience with most of it as a home builder. I am pretty handy and am also a licensed real estate broker. I am looking forward to it but it is a bit scary in this market if you want to sell. If worse comes to worse, I can rent the property. I have not done any flips but I am getting ready to. I have 30 years of real estate experience with most of it as a home builder. I am pretty handy and am also a licensed real estate broker.

I am looking forward to it but it is a bit scary in this market if you want to sell. If worse comes to worse, I can rent the property.

]]> By: FrugalTrader http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-114992 FrugalTrader Fri, 27 Aug 2010 22:10:51 +0000 http://www.milliondollarjourney.com/?p=978#comment-114992 Frank, if you want updates to this thread, you'll have to subscribe to comments at the very bottom of this page. Frank, if you want updates to this thread, you’ll have to subscribe to comments at the very bottom of this page.

]]> By: Frank http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-114988 Frank Fri, 27 Aug 2010 18:26:19 +0000 http://www.milliondollarjourney.com/?p=978#comment-114988 Sorry, I'd like to be notified of any comments. Sorry, I’d like to be notified of any comments.

]]> By: Frank http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-114987 Frank Fri, 27 Aug 2010 18:24:52 +0000 http://www.milliondollarjourney.com/?p=978#comment-114987 Great Post and one that I've been interested in for some time. While I enjoy the physical aspects of DIY, it can get old real quick. I've managed to satisfy this crave by fixing up my own home with hopes of one day selling it for alot more than I bought it for. But even then, you'd have to get total buy in from all family members as the dust and mess that comes with remodeling can really stress people out. For the passive investor (one having a concurrent job), it's really difficult because the only time for one to search for properties is during the weekend. Again, don't think that you're the only one that knows about this scheme. There are many out there doing this full time and for a guy like me who likes his day job, it's almost impossible to find deals and complete a flip in a timely manner..unless of course if you're already a tradesman with many contacts in the building trades that you could 'sub' out. Great Post and one that I’ve been interested in for some time. While I enjoy the physical aspects of DIY, it can get old real quick. I’ve managed to satisfy this crave by fixing up my own home with hopes of one day selling it for alot more than I bought it for. But even then, you’d have to get total buy in from all family members as the dust and mess that comes with remodeling can really stress people out. For the passive investor (one having a concurrent job), it’s really difficult because the only time for one to search for properties is during the weekend. Again, don’t think that you’re the only one that knows about this scheme. There are many out there doing this full time and for a guy like me who likes his day job, it’s almost impossible to find deals and complete a flip in a timely manner..unless of course if you’re already a tradesman with many contacts in the building trades that you could ’sub’ out.

]]> By: Ryan http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-108536 Ryan Tue, 15 Dec 2009 17:07:51 +0000 http://www.milliondollarjourney.com/?p=978#comment-108536 My wife and I bought our house in Toronto on spring 2006, not at all intending to flip it. I have always been reasonably handy, so we opted for a home we thought we could improve upon over time. We estimated that we would be in this house at least 5 years. Over the following two years, we were constantly under construction it seemed... big deck in the yard, opened up walls, refinished floors, torn out carpet on stairs and refinished, finished basement, moved around laundry facilites, replaced all baseboards and door and window casings, landscaping, painted and decorated, etc, etc, etc. This list certainly kept me busy for a long time, as the only thing I didn't do myself was the refinishing the floors... In the end, when we decided to move our of Toronto, we put scrambled to finish everything on time to put the house on the market after exactly 2 years. The house sold in 4 hours, for about 105K more than our initial purchase price. A nice little profit, but here are my final thoughts... Pros - profits sense of accomplishment I enjoyed doing most of the work, but stress to get things finished got to me in the end. Cons - living ina construction zone with a new born baby... leaving the house after having done all that work... In the end, we bought a lovely house out of town, and I havent picked up a tool since. although I am starting to jones for a project of some sort, I think i will pick up a rental that I can do alittle work on... My wife and I bought our house in Toronto on spring 2006, not at all intending to flip it. I have always been reasonably handy, so we opted for a home we thought we could improve upon over time. We estimated that we would be in this house at least 5 years. Over the following two years, we were constantly under construction it seemed…
big deck in the yard, opened up walls, refinished floors, torn out carpet on stairs and refinished, finished basement, moved around laundry facilites, replaced all baseboards and door and window casings, landscaping, painted and decorated, etc, etc, etc. This list certainly kept me busy for a long time, as the only thing I didn’t do myself was the refinishing the floors…

In the end, when we decided to move our of Toronto, we put scrambled to finish everything on time to put the house on the market after exactly 2 years. The house sold in 4 hours, for about 105K more than our initial purchase price. A nice little profit, but here are my final thoughts…

Pros -
profits
sense of accomplishment
I enjoyed doing most of the work, but stress to get things finished got to me in the end.

Cons –
living ina construction zone with a new born baby…
leaving the house after having done all that work…

In the end, we bought a lovely house out of town, and I havent picked up a tool since. although I am starting to jones for a project of some sort, I think i will pick up a rental that I can do alittle work on…

]]> By: Flipping Houses http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-107782 Flipping Houses Wed, 02 Dec 2009 06:11:04 +0000 http://www.milliondollarjourney.com/?p=978#comment-107782 If you really want the best deals in investment properties, you have to increase your odds by finding more deals. Who is more likely to get a cheap apartment building, an investor that looks through the MLS listings and calls it a day, or the one that uses ten resources? If you really want the best deals in investment properties, you have to increase your odds by finding more deals. Who is more likely to get a cheap apartment building, an investor that looks through the MLS listings and calls it a day, or the one that uses ten resources?

]]> By: Canada Deals http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-105550 Canada Deals Tue, 29 Sep 2009 04:41:03 +0000 http://www.milliondollarjourney.com/?p=978#comment-105550 The more I read through the posts on this blog the more I wish I would have found it eons ago :) We tried the "flip a house" thing 2 years ago in the booming Edmonton market. It was the most work I've EVER done in my life, *and* we must have done it all wrong because the profit wasn't what we expected. I think the market was just to volatile at the time. We didn't lose money but it wasn't pie in the sky like we'd heard it would be. Property flippers... I tip my hat to you. The more I read through the posts on this blog the more I wish I would have found it eons ago :)

We tried the “flip a house” thing 2 years ago in the booming Edmonton market. It was the most work I’ve EVER done in my life, *and* we must have done it all wrong because the profit wasn’t what we expected. I think the market was just to volatile at the time. We didn’t lose money but it wasn’t pie in the sky like we’d heard it would be.

Property flippers… I tip my hat to you.

]]> By: Jeff Logue http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-105473 Jeff Logue Fri, 25 Sep 2009 19:03:08 +0000 http://www.milliondollarjourney.com/?p=978#comment-105473 Great article. One extremely useful and powerful tool that flippers can use (and that I use for my business) for finding comparables is Realquest. Though you have to pay a monthly fee, this will give you the most up-to-date data pulled straight from the county records. You can track everything from the after repair value to the square footage of a property. This is especially helpful if you plan on flipping houses outside of your local area as well. Great article. One extremely useful and powerful tool that flippers can use (and that I use for my business) for finding comparables is Realquest. Though you have to pay a monthly fee, this will give you the most up-to-date data pulled straight from the county records. You can track everything from the after repair value to the square footage of a property. This is especially helpful if you plan on flipping houses outside of your local area as well.

]]> By: Flipping homes http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-105268 Flipping homes Fri, 18 Sep 2009 08:29:28 +0000 http://www.milliondollarjourney.com/?p=978#comment-105268 In virtually every single property you flip, you will run across SOMETHING that you simply didn’t expect. Whether it’s an issue that pops up 2 hours before closing that needs to be handled or a big surprise when you peek behind the drywall that you had to replace! You’ll almost always run at least a little over budget or hold it a little longer than you anticipated. In virtually every single property you flip, you will run across SOMETHING that you simply didn’t expect. Whether it’s an issue that pops up 2 hours before closing that needs to be handled or a big surprise when you peek behind the drywall that you had to replace! You’ll almost always run at least a little over budget or hold it a little longer than you anticipated.

]]> By: aRRow http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-105246 aRRow Thu, 17 Sep 2009 13:01:36 +0000 http://www.milliondollarjourney.com/?p=978#comment-105246 Hello, What's the best mortgage, out there, for the flipping business? Put down 5% Have a brake on payment, like escaping 1 or 2 payments a year Thank you Hello,
What’s the best mortgage, out there, for the flipping business?
Put down 5%
Have a brake on payment, like escaping 1 or 2 payments a year
Thank you

]]> By: Tobey http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-104664 Tobey Tue, 08 Sep 2009 01:43:30 +0000 http://www.milliondollarjourney.com/?p=978#comment-104664 Becareful about the canadian taxation of flipping ... it could be considered a venture in business with a view to profit .. any profit would be taxed 100% and if there was a loss .. well good luck saying how it should be 100% deductible if anything it would be a capital loss deductible at 50% against other cap gains ... Luckily I don't know if CRA has caught on to auditing this type of business activity to get more tax revenues but who knows in the future .. all land transfers have to be registered ... Becareful about the canadian taxation of flipping … it could be considered a venture in business with a view to profit .. any profit would be taxed 100% and if there was a loss .. well good luck saying how it should be 100% deductible if anything it would be a capital loss deductible at 50% against other cap gains …

Luckily I don’t know if CRA has caught on to auditing this type of business activity to get more tax revenues but who knows in the future .. all land transfers have to be registered …

]]> By: mattyfu http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-104466 mattyfu Mon, 07 Sep 2009 03:46:16 +0000 http://www.milliondollarjourney.com/?p=978#comment-104466 I'd really like to hear some experiences from a 1 a year live in home flipper, it seems like the least risky way of doing it, worst case scenario your paying down the mortgage until the market will pay what you feel it's worth. Obviously not practical for a lot of people (families) but I'm sure there are plenty out there doing this. I'd also like to hear more about cabin/lake lot real estate investing because around here (Alberta) it seems the price difference between a empty lake lot and a lot with a cabin on it leaves room for some decent profits. I’d really like to hear some experiences from a 1 a year live in home flipper, it seems like the least risky way of doing it, worst case scenario your paying down the mortgage until the market will pay what you feel it’s worth. Obviously not practical for a lot of people (families) but I’m sure there are plenty out there doing this.

I’d also like to hear more about cabin/lake lot real estate investing because around here (Alberta) it seems the price difference between a empty lake lot and a lot with a cabin on it leaves room for some decent profits.

]]> By: Olivia http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-103332 Olivia Tue, 01 Sep 2009 12:05:11 +0000 http://www.milliondollarjourney.com/?p=978#comment-103332 well from the description about the flipping of houses i can say that this is a job that is not for me as i am bad at buying and selling property but i liked you formula for evaluating the market price... informative post :) well from the description about the flipping of houses i can say that this is a job that is not for me as i am bad at buying and selling property but i liked you formula for evaluating the market price… informative post :)

]]> By: Russell http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-103193 Russell Mon, 31 Aug 2009 17:40:27 +0000 http://www.milliondollarjourney.com/?p=978#comment-103193 in order for flipping to work the market either has to be in a phase of irrational apreciation on the property has to be purchased at a discount. A discount to the price plus repairs which is the hardest discounts to find. in order for flipping to work the market either has to be in a phase of irrational apreciation on the property has to be purchased at a discount. A discount to the price plus repairs which is the hardest discounts to find.

]]> By: jim http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-103139 jim Mon, 31 Aug 2009 03:11:46 +0000 http://www.milliondollarjourney.com/?p=978#comment-103139 Agreed with #21. As an electrician who could probably handle 90% of the interior renos myself, but would need help for exterior renos due to lack of experience. I'd much rather come home from work, click on CNBC, and go to my Scottstrade account to see how I'm doing. Being fairly diversified I have about 10 grand set aside at all times that I "play" with on penny and other high risk stocks I move in and out of. I have made profits in 2 days that above posters have made after 3 months not including swear factor. Just my thoughts. I still know a few guys at work who have done rather well flipping homes in higher end Long Island NY areas. Most still say it's very nerve racking and a fairly long process to finally see the CASH. Where as a few clicks of the mouse and I can secure gains..OR loses LOL in nanoseconds. Less stress IMO. If you are passionate about homes and renos go for it. I work with my tools 40+ hrs a week so sitting at a PC 1 hour a day and doing a little DD afterwards seems easier for me to secure gains. Agreed with #21. As an electrician who could probably handle 90% of the interior renos myself, but would need help for exterior renos due to lack of experience. I’d much rather come home from work, click on CNBC, and go to my Scottstrade account to see how I’m doing. Being fairly diversified I have about 10 grand set aside at all times that I “play” with on penny and other high risk stocks I move in and out of. I have made profits in 2 days that above posters have made after 3 months not including swear factor.

Just my thoughts. I still know a few guys at work who have done rather well flipping homes in higher end Long Island NY areas. Most still say it’s very nerve racking and a fairly long process to finally see the CASH. Where as a few clicks of the mouse and I can secure gains..OR loses LOL in nanoseconds. Less stress IMO. If you are passionate about homes and renos go for it. I work with my tools 40+ hrs a week so sitting at a PC 1 hour a day and doing a little DD afterwards seems easier for me to secure gains.

]]> By: Rick Cartstens http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102864 Rick Cartstens Sat, 29 Aug 2009 10:31:02 +0000 http://www.milliondollarjourney.com/?p=978#comment-102864 well really a nice piece of information. thanks for posting it... but i have the same question as raised by the frugal trader that do anyone knows the percentage charge for the land transfer tax in Ohio. well really a nice piece of information. thanks for posting it… but i have the same question as raised by the frugal trader that do anyone knows the percentage charge for the land transfer tax in Ohio.

]]> By: FrugalTrader http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102796 FrugalTrader Fri, 28 Aug 2009 16:39:38 +0000 http://www.milliondollarjourney.com/?p=978#comment-102796 Anyone know what percentage they charge for land transfer tax in Ontario? Anyone know what percentage they charge for land transfer tax in Ontario?

]]> By: Dk http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102794 Dk Fri, 28 Aug 2009 16:15:51 +0000 http://www.milliondollarjourney.com/?p=978#comment-102794 I thought about doing this but Toronto land transfer taxes are astronomical, making it much harder to profit from the flip. I thought about doing this but Toronto land transfer taxes are astronomical, making it much harder to profit from the flip.

]]> By: Matt http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102662 Matt Fri, 28 Aug 2009 05:12:24 +0000 http://www.milliondollarjourney.com/?p=978#comment-102662 I'd rather invest in dividend paying stocks and watch the boob tube after I get home from work :-) I’d rather invest in dividend paying stocks and watch the boob tube after I get home from work :-)

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