7 Things You Need To Know About Flipping Homes In Edmonton
We have been flipping homes in Edmonton for years, and we have learned a lot of hard lessons along the way. Some of these lessons ended up costing us a lot of money, and others have halted our projects and sometimes even made our project timeline go backwards.
As a consumer, I know that you expect that you will hire a realtor to buy a flip and they will have all of the answers. Unfortunately that is far from the case….most Edmonton Realtors don’t know squat about flipping houses. Now that being said, there are some agents that will know what they are talking about and I really don’t want to discount their knowledge.
If your agent has not flipped more than 10 properties, then you should probably find yourself a different agent to deal with for a flip. Let me know if you need any recommendations, as I know lots of agents that are good for this type of purchase.
As you may know, we are Edmonton mortgage brokers that specialize in helping people finance their flip or investment properties in Edmonton as well as cross Canada. The majority of our client base is in Edmonton though and many of them are repeat flip customers.
I have personally flipped over 70 houses, so I really know and understand the nitty gritty of flipping in Edmonton. Please, please be careful when you flip a property and read some of our other Edmonton house flipping blogs. I have seen people loose a lot of money trying to flip houses in Edmonton. I have also seen people get into trouble doing this.
Now I am not trying to deter you, I flip houses because it can be really profitable if you do it right. I want to help you set up some expectations that are realistic for you, so that you know what you are getting yourself into.
So here they Are….
7 Things you need to know about flipping houses in Edmonton
Contractors will try to rip you off
This is one of the most frustrating things about flipping houses, contractors will always try to rip you off. I always choose to get multiple quotes for every job because of this. Most contractors I meet are hardened by the industry and a lot of them have problems. I have one contractor that I have worked with, that jokes to me how he rips off old ladies when he gets the chance. It can be really grimey. So pre prepare yourself for some harsh realities.
Th only sure way to not get ripped off is to take a minimum of 3 quotes per job. I usually get 5 or 6. Never pay deposits upfront as I have had many contractor never show up again after taking a deposit. Please call me with any other questions about hiring contractors. I love to help.
2. You need to get a good electrician
The electrical is an essential job of a house flip. If the electrical is not installed correctly, the house could burn down and people could get injured. I always make sure I hire a licensed master or journeyman electrician WITH INSURANCE. Remember, you are liable for what happens in the house and if people get hurt, it will cost you a lot more than the cost of the electrician.
3. Don’t ever take down a wall unless you know what is behind it
Some people think that taking down a wall is just smashing through the thing. This is a big house flipping no no. I have had multiple situations where we have cut through electrical lines and damaged things because we were not careful taking down walls.
The other thing you need to take into consideration is permits and structure. If you remove a load bearing wall, the entire room can collapse on you. People could get hurt and the damage can be very expensive.
4. People will steal from you
When you are doing a house flip in Edmonton, there will be a lot of people going in and out. At some point you might have to hire some cheap labour for cleaning or general labour stuff. I usually find these people on Kijiji. They will work for cheap, but they also might steal from you.
They are not the only one that will steal from you. I have had multiple cases where our properties were being scoped out by people in the neighbourhood. They would wait until we left and then go into the house taking tools and sometimes damaging the property. These are usually drug addicts and other riffraff.
I put up fake cameras, sometime real ones at job sites as a preventative. I also put warnings on the doors and windows.
5. Contractors might do drugs on your property
You can ask any contractor if they use drugs and they will say no. It is bullshit, I have caught tons of contractors using drugs like weed and cocaine on the properties. I have even caught a contractor having sex with a prostitute in one of my flip houses. You really have to babysit these people. Call me if you have any questions about how to deal or avoid these situations all together.
6. Make sure they sign a waiver
I have all contractors that step foot into one of my flip houses sign a liability waiver. The waiver states that if they are hurt on the property, myself or my company are not liable. I had my lawyer draft this up and it keeps me protected. Not all of the workers you will be hiring will have wcb. So this is very important. Don’t let yourself be on the hook for someone.
As a matter of fact, if you don’t get a waiver signed you are just putting yourself at risk and I can see a contractor getting injured on purpose just so they can sue you. Nothing surprises me any more in this job.
7. Laminate needs to be staggered
Every person that walks through your door will tell you that they can do multiple jobs and flooring is always at the top of the list. If you see that the person you have hired is installing laminate flooring with a straight seam, you need to get rid of them. The floor will separate within a month.
Common questions about flipping houses in Edmonton
Can you make money flipping houses in Edmonton?
Yes you can make a pretty good living flipping houses in Edmonton. You really have to be aware of all of your costs and know what your sell price will be in the end. Ask us how we do it.
2. How much money do you make on a house flip in Edmonton?
You will make an average of 12% flipping houses in Edmonton. However I have had times where I have made over 70k on a single house!.
3. Do I need a realtor to buy a house flip?
No you do not need a realtor to flip a house in Edmonton, but it could help. You have to make sure you hire a realtor that knows what they are talking about. And unfortunately most of them do not. Call me if you want a recommendation on someone that is goo in Edmonton or Calgary. I know good agents in both of these markets.
4. Can you loose money flipping houses?
Yes you absolutely can. I have a friend that bought a flip house without my advice. I’m not sure why, but he worked on this house for months. When it was done, he showed it to me and I told him he put way too much money into it and that he would loose. He ended up having it on the market for over 200days and when he finally sold it, he lost $25, 000. Please call me before you flip. I will help you save money. And read all of the Edmonton Flip blogs I have out on this website
4. How do I get a mortgage for a house flip?
Not every lender will lend on a flip. I am an Edmonton Mortgage broker that specializes in house flips. I know the lenders that will finance these at the lowest rates, and have many options for individuals and businesses.
5. Do you need permits for a house flip in Edmonton
You do need permits for some things when you are flipping a house in Edmonton. Some of these things are electrical, plumbing, load bearing walls, basement developments and more.
Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”