Flipping properties can be a lucrative venture for those who get it right, and if you’d like a piece of the flipping pie, here are 6 ways to find the right property:
- 1. Get an agent
Real estate agents are a wealth of information when it comes to all things related to property, and will have specialist knowledge of the properties in your locality, or the area in which you plan to buy a property to flip. Not only that, but they can help you make sense of jargon often used in the home buying industry, and condense facts and figures that you might otherwise have struggled to decipher and comprehend.
- 2. Check out databases
Databases such as REALTOR.ca help you to explore all of the possibilities when it comes to buying a home to flip. With filters to narrow down your search, you can look for specific properties such as those with a large garage, or a generous yard, and discover highlights of each home, such as data about the neighborhood and local demographics.
- 3. Look out for ‘for sale by owner’
In some instances, a homeowner may choose to sell a property themselves, foregoing the realtor’s fees. This means that you can buy directly from the homeowner, should you see a sign up on their front lawn or find them advertising it on social media.
- 4. Search for foreclosed homes
This type of property comes onto the market when a homeowner defaults on their mortgage and the lender has repossessed it. Lenders are typically highly motivated to sell the home since they have no use for it, and such properties are often advertised as being ‘as-is’, with no onus on the seller (in this case, the lender), to repair any structural issues or clean up the property before it’s bought.
If you’re worried about defaulting on your mortgage by the way, a conversation with a mortgage broker can help you find ways to better manage your money, or if appropriate, find an alternative lender able to offer you a better deal.
- 5. Check out homes on Kijiji
This popular website for Canadians lists all kind of classifieds, including homes for sale, and while some of the details may be minimal, you can narrow down your search based upon whatever location you happen to be interested in, and the site can also connect you with wholesalers that specialize in selling properties to flip.
- 6. Attend auctions
Properties can be sold by auction, and often, the address is given beforehand so that anyone interested can drive by and assess both it, and the area. However, interested buyers are not permitted to go inside the property until the auction itself, and it’s important that if you do attend one, that you have a clear budget in mind, and stick to it. The price can easily be driven up by multiple interested parties, so have a good idea of what you can afford and what will give you a good return on your investment.
So, now you’re all set to find that perfect flippable property! For more guidance related to mortgages, talk to a broker in the area in which you plan to make your purchase.