Flipping a property in Calgary with 10k down - What?!

Landlording is not for everyone.  That, we can all definitely agree on. 

Despite that, there are lots of ways to take advantage of the opportunities in real estate.  Some examples are buy and long term holds (which Renee and I do), vacation properties, partnering as a silent investor, land developments, commercial retail, commercial residential, investing in Real Estate Investment Trusts, in Mortgage Investment Corps, Privately lending your own funds and flips. OHHHHH FLIPS.  Everyone loves a good HGTV flip program – don’t we?

Flips are for those that see the value and vision of what a property COULD be.  They want to change and renovate the property to be better used.  Either as a investment property or as a home for new owners.  Sometimes, renovations and be simple things, like paint, flooring and maybe some exterior TLC.  Other times, adding a secondary suite, garage or really gutting a property is what’s necessary to reposition the asset and make it more usable for the next home owners or tenants. 

Financing these types of projects is not always straight forward. Traditional financing not only requires fancy footwork through many hoops, but can have costly payout penalties when clients sell their renovation projects.  Many new “flippers” focus on getting the lowest interest rate for their project and don’t realize that in doing so, they’re strapping the project with high back end costs and payout penalties. 

We have access to an amazing flip program through one of our strategic partners.  They share the vision of turning the dated homes into a masterpieces with a simple underwriting philosophy.  It really comes down to one question - Will the project be profitable? 

In the past clients needed to have an excess of cash for the renovations on-top of having 20% down to purchase the property.  If they were buying a home worth $400,000, they would need $80,000 for the down payment, plus $100k-$200k for a quality renovation ($250/sqft). 

The opportunity cost on these projects was massive!  Client would have $200,000 tied up in a single project!  This doesn’t allow them to move forward with future projects until the current project is sold. 

Our program is currently allowing clients to purchase properties with as little at 10% down.