Learn how to flip houses – a step by step process

So you would like to know how flipping houses in Canada works and how to generate instant profits

The business of flipping houses in Canada is very profitable and so is investments. Just like any other business, you must go and learn from Flipping4Profit.ca. You would also need to join the Professional real estate investors group (PREIG) Canada to learn more and meet with professional real estate investors.

Learn how to flip houses

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Top 10 reasons to buy a home during winter & holidays in Canada

Top 10 reasons to buy a home during winter & holidays in Canada

 

Very few Canadians like to uproot their family and go through the stresses of home buying and moving during the winter & holidays, but for those who do not mind, the holiday season may provide home buying bargains for Canadian professional real estate investors.

Top 10 reasons to buy a home during winter & holidays in Canada

 

Less Market Activity – Lots of family, school, and work activities, combined with the weather in many locations, lead to fewer real estate transactions over the winter & holidays. Since fewer people overall are looking to buy houses, you will have less competition for your preferred house – and this gives you leverage.

Winter & Holiday home sellers often have to adjust their price downward or make other concessions if they want to sell. Keep this in mind as you search for homes. Bargains may be available, and listed prices may be more open to negotiation.

Clearance Sale Canadian home builders end up with surplus properties as well as those properties with a new buyer befalls. They are happy  to find Canadian real estate investors to buy the property at a whole sale price. This is very common among condominiums in slow markets.

Circumstances Canadians sometimes have to sell their home but not by choice, but due to circumstances beyond their control. That is due to sickness, loss of job, transfer, death, divorce or drugs. Since there are not that many active buyers during the holiday and winter months, it is a perfect time for investors to scoop these types of deals without any competition.

Top 10 reasons to buy a home during winter & holidays in Canada

Power Of Sale/Foreclosure Due to time and  legal obligations the lender have no patience but to sell these properties as soon as possible to recuperate and safeguard their investments. During holidays and winter times a lot of jobs intend to disappear and a lot of home owners start defaulting their mortgage payments. Remember always buy pre-power of sale or pre-foreclosure Canadian real estate.a2

Estate Sales are the sales with next of kin have inherited these properties by default due to the laws of the country there are a lot of financial obligations which include capital gains, taxes and outstanding bills. These properties need to be sold in urgency because most of the time they are empty and are not in good shape. These are perfect properties for Canadian real estate investors to fix and flip for instant profits.

Top 10 reasons to buy a home during winter & holidays in Canada

Motivated panic sellers – People who are selling their homes over the winter & holidays often have great incentive to sell, such as upcoming job relocation. If a house has already been on the market for some time, that incentive is multiplied.

Top 10 reasons to buy a home during winter & holidays in Canada

You may be able to use this urgency to your advantage (assuming you are not in a similarly urgent need to buy). Negotiate fairly but firmly with sellers and you should be able to extract a lower price and/or other concessions like paying part of the closing costs.

Potential Tax Advantages – If you itemize your taxes, you can deduct any points you paid upon closing, as well as property taxes and mortgage interest. Whether it is to your advantage to buy before or after year’s end depends on factors such as how many other deductions you have this year and expect to have next year.

Better Interest Rates – Within the general trend of interest rates, there is often a cyclical trend of lower interest rates during the winter & holidays – not from the generosity of lenders but due to limited demand forcing greater competition among Canadiu

There are plenty of factors that can obscure or swamp this cycle, but in general, you should see preferable interest rates around the winter & holidays compared to the times immediately before or after.

Faster Closings – Generally, all parties involved have incentive to complete transactions toward the end of the year. Lenders want to close their books, real estate agents want to receive their commissions before the year closes, sellers want to move on to their new home and settle in for the winter & holidays – and just like the sellers, you want to settle in as well.

Since all parties are motivated and there are fewer transactions taking place during this time, it should be easier to put everything in place for a smooth and rapid closing.

These factors do not always apply. For example, if you are trying to buy a home in a winter ski resort area or similar high-demand winter destination, these dynamics may be reversed – except for the tax implications. However, for the majority of Americans, the winter & holidays represent an opportunity to buy a home under mostly favorable economic conditions.

The weather may still be frightful, but your opportunities to buy a home around the winter & holidays may be just as delightful. Enjoy the holiday season as you explore your options. Don’t forget to give Santa your new forwarding address!

Top 10 reasons to buy a home during winter & holidays in Canada

Canadian REI Club Membership

What are the advantages of joining a Real-Estate Investment club membership?

1.Networking (your network is directly related to your net worth!)
2. Information of current market trends
3. Meeting other local investors and learning from their experiences.
4. Learning from experts with proven track record
5. Getting referrals for service providers and other contacts you will need.
6. Building  cash buyer’s lists
7. Meeting others whom you may do deals with (JV, wholesale, buy from, etc)

Join Canadian REI Club Membership now

8. Canadian private hard money lenders

9.Wholesaling your real estate deals

10. Joint Ventures

Canadian REI Club Membership

Your success is our Passion!

 

Canadian REI Club Membership Canadian REI Club Membership

Hidden Profits in the form of Forgivable Canadian Grants

Hidden Profits

Canadian Grants

Hidden profits in forgivable Canadians grants are very imporant for Canadian Real Estate investors to know. The Real Estate Millionaire Secrets Apprentices (REMSA) went to the city of Hamilton to learn more about different investment opportunities and grant programs. Warmingly welcomed, we were introduced and showed by the government officials what types of grants, rebate programs and tax assistances are available.

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How To Double Your Rent

How To Double Your Rent

As a Canadian real estate investor and landlord, are you are getting fair market value rent for your units? You generally are subject to a certain amount of rental increase in most provinces, which is set out by provincial governing bodies.

Feeling handcuffed?

You are effectively handcuffed to the amount of rent that you can collect. You can only increase your rent to a  new amount once a tenant has moved out and another one has moved in.

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How To Effectively Pick Your Tenants

How To Effectively Pick Your Tenants

As a full-time Canadian real estate investor and landlord, one needs to choose their tenants wisely. Why? Because we want to set ourselves up to have as little stress involved in our business as possible. We want to spend time making more deals, making a massive and passive income for ourselves.

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10 Subjects to Include in Your Joint Venture Agreement

10 Subjects to Include in Your Joint Venture Agreement

Ten areas to consider including in your JV agreement include:

1. Purpose of Joint Venture

Are you buying, fixing, and selling a property together? Are you buying, fixing, and renting a property together? Get really specific on the purpose of this joint venture. That way, both parties are clear and comfortable.

2. Purchaser of the Property

Who is purchasing the property? Sounds a bit obvious — but can be overlooked in some joint ventures. The purchaser of the property is taking on more risk, so this arrangement should be spelled out in the agreement.

3. Term of the Agreement

If you are buying, fixing, and selling a property, you need to put in the agreement how you handle if the property does not sell. You also need to spell out if both partners will be part of the decision-making process of reducing the house price. It is really helpful to include all contingencies and worse case scenarios.

As I shared, we are in the midst of finalizing a joint venture agreement for a fix and flip project with another company. We have specified in the agreement that our partner will determine correct pricing of the finished property and will be in charge of the appropriate timing of reducing the price if need be. Our joint venture partner knows the local market much better than we do, so why would we want to micro-manage these decisions? The key to having a successful joint venture is to be crystal clear on the value each partner is bringing to the table and for the partners to not get involved in areas that are not appropriate for them to get involved with.

4. General Definition Section

Some would say this is just legalese; however, it is helpful to define the key phrases and terms you are using in this agreement. Remember, not everyone defines these common terms the same way.

5. Obligations of the Joint Venture2

In my opinion, this is one of the most important aspects of the agreement. You have to spell out in the clearest terms what each partner is responsible for. This includes who will be responsible for obtaining the commercial loan and how much that commercial loan is for (if applicable). This also includes aspects such as:

  1. Financial: what equity each partner is responsible for
  2. Operations: who is running the day-to-day operations of the rehab and responsible for bookkeeping and record keeping
  3. Marketing/sales: who is responsible for marketing and selling the finished product

The key here is to spell out every single detail. Include everything. I have never heard partners complain about too much communication in a partnership.

6. Allocations

You might have covered this in another section, but make sure you include the percentage of profits each partner will receive after all liabilities and holding costs, etc. are taken care of. I have seen many joint ventures be 50/50, but sometimes they are 40/60 or 30/70. It completely depends on the value the partners are bringing to the table.

7. Termination

Remember, joint ventures are not meant to be long-term agreements. They are designed to be short-term with a very specific, defined purpose. There is a clear beginning and ending to all joint ventures. These types of details should be spelled out as well in the agreement.

8. Rights and Duties of Parties Included in Joint Venture

This is mostly legalese but helpful to include to protect all parties involved.

9. Payment of Expenses

You need to specify in this section who will be handling funds, who is in charge of the banking relationship (if there is one), who will be paying the contractors and service providers, etc. This should have been covered above in the responsibility section, but if you have not specified how much equity each partner will be putting in, this is another place to add this. Additionally, you should specify in which partner’s business checking account the funds will reside. Money allocation and disbursement is one of the most important areas to cover in these joint venture agreements!

10. Insurance

This is an extremely important section. Many times, joint ventures are not newly formed business entities. Therefore, you should be clear on how this project will be protected with insurance and which type of insurances are important to purchase and maintain during the project. In this section, you need to specify who is purchasing and maintaining the various insurances (worker’s compensation, builder’s risk insurance, property insurance, etc.). Again, I am NOT an insurance agent by any means; however, I know the importance of properly protecting the building and all the contractors that will be working in the building.

In summary, I don’t know many real estate investors that have not at some point entered into a joint venture relationship. Therefore, you want to set yourself up for success from the beginning. Even if you are entering the joint venture with a family member or a good friend, you MUST put an agreement in place so the roles, responsibilities, percentage of profit, and money allocations are specified and clear from the very beginning.

For those who have entered joint ventures, please share your experiences. Are there any other areas that I am missing that are essential to include in an agreement?

How to Profit from Foreclosures in Canada Part 1

Creating massive & passive income is what full time Canadian real estate investors need to do. Foreclosures can be a source of many deals for us, where we are helping people who have gotten themselves into a situation and allow them to downsize with dignity and with money in their pocket.

Profit from Foreclosures

Profit from Foreclosures

Profit from ForeclosuresSo, what actually is a Foreclosure?

Profit from Foreclosures Some provinces in Canada have power of sale, while others have foreclosures. A foreclosure is a legal action where if the person who got a mortgage or borrowed money stops paying back the mortgage, the lender can take action. The court can grant the lender in certain provinces the ability to take back or sell the borrowers house in a foreclosure.

Profit from ForeclosuresWhat is a mortgage ?

A mortgage is a contract between a borrower and a lender (or mortgagor and mortgagee) for the mortgagor to pay back the loan to the mortgagee. When you get a mortgage to buy a house, you borrow money so you can pay back that amount in installments.
So what happens if you miss a mortgage payment, or you can’t make a payment?

Do you lose your house? Lenders don’t want to foreclose on you. Why? The foreclosure process takes a lot of time and money.
So the lender mat give you forbearance, which means that they probably won’t start to foreclose until three months after you are in default.Profit from Foreclosures
The lender will start the foreclosure process if they start demanding payment and you do not respond. Try working something out with the lender, ignoring them is a really bad decision. .

In the next article, we will discuss how to make money in foreclosures as a real estate investor.

World Wealth Builders offers many unique, practical, “out of the box” real estate investor trainings which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.worldwealthbuilders.com/live 

 

 

 

 

 

P.S. Success isn’t a matter of chance, it’s a matter of choice. So it’s up to you to make the right choice to become successful. If you don’t know what to do it starts with making the choice to register for this LIVE real estate investors training in your town now and making sure you make the right choice to SHOW UP!!! Learn more to earn more!

Are you a Canadian real estate Investor? Join Canada’s largest real estate investors club now.

11 Celebrities who make Extra Income by Flipping Houses

11 Celebrities who make Extra Income by Flipping Houses

Even famous people look beyond their day jobs for extra income; and the stars that turn to flipping houses can really make a lot of money.
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1 Of 11MICHAEL C. HALL
Hall went from Dexter to Broadway and he flipped a house in Los Angeles after owning it for only a month.
Now, he has sold his Los Feliz, a home for 675,000 more than he bought it for, and it was sold at 4.85 million. He tried to sell the house in 2014 but it didn’t work out.

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2 OF 11 ELLEN DEGENERES
Ellen has several house flips under her belt, and is probably the most well-known celebrity house flipper.

Her biggest flip was in July 2014 when she sold LA’ s Brody House for $55 million, $15 million more than what she bought it for. .  .

 


3 Of 11 JEREMY RENNER3
Jeremy Renner has successfully bought and sold several homes over the years, one in Nicholas Canyon and another in Hollywood.He owns a home at the foot of Runyon Canyon that he’s trying to sell for #4.795 million .

 

4 Of 11 JENNIFER ANISTON4
Jennifer Aniston listed her Beverly Hills home for $42 million in 2014, after finishing extensive renovations with the help of architect and designer Stephen Shadley. According to Variety, the home sold for $35 million after only two months on the market. The home was purchased for only $13.5 million by Aniston.

5 Of 11 COURTENEY COX5
Courtney Cox and David Arquette divorced in 2013, and sold their beach house in Malibu for a nice sum of money. Although the pair asked for $19.5 million, the house was sold for $18 million, 10.075 million more than what they bought it for.

 6 Of 11 DIANE KEATON6
Diane Keaton has undertaken several renovations of historic California homes over the years, and even flipped two homes in 2010.

Her Beverly hills home was sold for an undisclosed amount to the creator of “Glee” and “American Horror Story”, Ryan Murphy.

7 Of 11MERYL STREEP7
Meryl Streep may have been hoping for a bigger profit when she listed this 1954 Research House for $6.75 million, but she and her husband still made $300,000 when it sold for $4.8 million just four months after it was listed.

8 Of 11ALEX RODRIGUEZ8
When alex rodriguez sold his home for $30 million in 2013, he made a tidy profit of $15 million.  The Yankee purchased the mansion for $7.4 million in 2010 and spent another $7.6 million renovating the gorgeous space.

 

9 Of 11 VANILLA ICE9
Vanilla ice has been studying house flipping for the past 15 years.  ” The former rapper told Time.com he has made millions flipping houses, and doesn’t even know how many houses he owns off the top of his head.
 10 Of 11 TOBEY MAGUIRE10
He is trying to flip his plantation style home in Brentwood which he acquired for $8.45 million. The “Spiderman” star has listed the 6-bedroom, 5-and-a-half bath mansion for $10.25 million.

 

11 Of 11 SCOTT DISICK11
Kourtney Kardashians guy, he is new to flipping houses and has hopped on the bandwagon. He recently purchased a five-bedroom home in Beverly Hills for #3.69 million and sources told US Weekly he intents to renovate and flip the property