Make your fortune in real estate. It is not that hard once you get the hang of it. Real estate flipping can be an extremely high paying career, but I see way too many people give up on it. The turnover in this industry is exceptionally high. I noticed the high turnover early on and have watched to learn why some people kill it while others disappear. This has been important to monitor to help myself and my clients last in this amazing business.

I have been in the real estate field for the last 16 years and my hard money lending company finances around 150 deals a year. Here is what that experience has taught me about being a successful fix and flipper.

Mindset: This is where it all starts. For the last 3 years, I have felt myself fall into a little lull and have realized that this occurred because of my mindset. Your mindset could be a lot of things, but the basic concept is that what you believe will happen… does. Sometimes just convincing your mind that you will hit a goal takes work. Not to mention the work that it takes to actually hit that goal.

Focusing your mind on positivity is a great start, but you really need to believe you deserve the success you desire. Meditation and affirmations are fantastic ways to accomplish this.

Hustle: Nothing is going to be given to you. When I was going through my struggles to hit some financial goals, I had to keep reminding myself of this. Times can get hard and things can feel unfair, but the reality is, no matter how much you don’t want to believe it, you are the only one responsible for your success. I would tell myself this over and over. “If I want it, I need to earn it” I had to get up in the morning. I had to deal with the problem on my plate. I had to stay up late or work on the weekend. I had to put in the work to get the results. Because I decided to be successful, I decided to work hard.

Network: As we have learned. It is not what you know, it is who you know. I constantly try to team up with people smarter than me, that can both help me learn and help me get results. This has resulted in millions in profits. I also feel very lucky to have a network that can solve just about any problem I run into. If I am rehabbing a house and run into a problem, I have a list of people I can call for help. If they don’t know how to help they will know someone who does. I lean on my attorneys, my CPA, partners, wholesalers, and other professionals on a regular basis.

Education: To make my top five list you know I believe this is important in your success. Constant improvement is essential and the exciting thing about this, especially early in your career, is that growth is exponential. As you learn and implement ideas into your business, your business grows at a faster and faster pace. Obviously, for this to work you will need to learn AND implement. Many people learn all about investing and never invest. That comes down to the investor mindset. That’s why, I believe, you need all five of these essential keys to be a great fix and flipper. The good thing is this is possible for everyone, including you.

Access to Money: So, this one might be self-servicing because I am a lender, and this could fall within the Network category but let’s face it, if you don’t have money you don’t do deals. Money can come from many sources including cash you have in the bank, money you borrower from institutions, partners, private and hard money loans. Many times, you will need a combination of these sources to get a deal done or to maximize profits. This can all be learned as part of your education or you can choose to work with a professional that can advise you on the best way to navigate this complicated subject.

 

If you are buying and planning on re-selling or renting out, to get the most out of your property you might want to do some upgrades to give it curb appeal. The amount of upgrades needed would depend on a case by case scenario. Obviously if the roof, foundation, etc, needs to be done, that’s without question. I am talking about major renovations, but upgrades. That curb appeal and that make a buyer go, “wow” and pay a little extra for the place.

If you aren’t going to work with a designer and you would like to do it yourself, I suggest going to the library or buying a bunch of up-to-date home style magazine to get ideas of what’s in right now. Knowing your market isn’t such a big deal because most everyone wants something chic and stylish. Something I like to call “urban chic”; a lot of clean lines, minimalism and bright open spaces. A Zen like approach. That look is selling to the mass market right now.

First impressions are always important, so the outside of the house needs the most love. Don’t go boring either. Chose exciting colours like grey/mauve, terracotta or sage. Paint everything that needs it, wood, railing, mailbox, light fixtures, etc. I’m not talking all one colour, have some black or white in their for contrast. If they can’t be painted, replace.

If there isn’t any landscaping or it’s shot, you need to revamp the look. Take out or trim everything that is overgrown. Be ruthless if necessary. Cedars are great when they are green and small, however if they are yellow and too tall, get rid of them. Keep the look short, so you can see the entrance way. Weed the grass if any, add more seed. Clean out the dirt of debris and weeds, add more dark earth and mulch. Make a nice clean line between the grass and garden. I would invest in a couple of bushes that contrast each other and some bright annuals that light up the front.

Floors are the most important. They make such a big impact. They have to be nice. If there is hardwood I suggest refinishing them. Staining them dark is always a nice touch. Parquetry looks incredible stained chocolate. It goes from a bad 1970’s look to something modern and Asian looking. If the floors need to be replaced, bamboo and other sustainable flooring are trendy right now. If the lino is old, change it. If you can afford tile, do it.

Kitchen. If the kitchen is an old wood 1950’s style, no need to rip that out and redo it and spend all that extra money. Paint it glossy cream and add stylish knobs. You could even add a moulding.

If it’s white melamine, you could either paint it with special paint, or keep it as is. Sometimes it’s the surrounding area that can buff it up and make it not look so “melaminy”. Meaning, add a trendy tiled backsplash, a new countertop, and knobs. If the melamine has a 1980’s boarder that can be taken off, remove it for a cleaner look.

If you have the 1990 oak cabinets, they look incredible painted as well. If the cabinetry is hanging from the ceiling dividing the eating area, you could take those down and reuse them somewhere else, like an island.

Extra touches:

  • Faucets are important. They can be such a focal point to the room. You don’t have to go high end to have a polished modern look.
  • I think the investment of crown moulding adds so much value to the place if it’s done right (no need in the bathroom). Paint it glossy to give it a vintage look.
  • Keep paint colours simple and light. Painting one wall in a room dark grey or another trendy colour is fine, however use minimally.
  • Dark on light is very trendy right now.
  • Make sure the flow of colour from one room to the next is there.
  • Clean, clean windows are a must.
  • Tear down a wall if necessary to give the space more of an open feel. For example opening the kitchen to the living room. You must verify with a structural engineer before tearing anything down.
  • Pot lights and dimmers.
  • Trendy light fixtures and knobs. Don’t go high end. Places like Ikea are fine or places that reclaim vintage.

Bathrooms are easy because it all lies in the choice of the tile and counter top. White tub, sink and toilet are always in and if they are in good condition they won’t need replacing. The cabinetry can be painted a black, chocolate, white or cream. It will update any look.

 

When doing renovations, people rarely think about long-term resale value. Most families just want a really nice place to live and they work to create their forever home. However, life can be unpredictable. So while it is joyful to make a dream home, those dreams need to be balanced with an understanding of whether or not those granite countertops or that second story are good investments in the long run.

What is resale value?

We hear the idea of resale value quite often pertaining to real estate. The ideal is to buy a property that is a good investment and to have its value appreciate. Good maintenance and appropriate renovations help ensure that when it comes time to sell again, the property has gained equity and you’ll make money.

However, the amount of money you’ll make depends on market appreciation. Which is why it’s important to make improvements that fit the property and the neighborhood.

Location the key factor to consider

If you’ve bought a property by a highway or another not-so-great location, you probably got it for a good price. If that location’s value doesn’t increase during the time you own it, you’ll probably have to sell it for a similarly good price, even if you’ve done a lot of work on it.

Many property owners invest in renovations that aren’t in keeping with the neighbourhood. As a result, they end up selling for less than they invested, which can be heartbreaking.

Before you renovate, look at what has been selling around you – at what cost for what quality? If the most expensive home in your neighborhood sold for $400,000 after being completely renovated, it doesn’t make sense to style your house to a value any higher.

And really, how special are those $10-per-square-foot tiles anyway? Go with the $5 tiles instead.

Focus your investment to one or two elements per room. Make pricey items such as granite countertops, a fancy backsplash, or a higher end faucet; work like show pieces, similar to a piece of art.

Smallest may be best when it comes to resale
As for adding a second story to create more space for an expanding family, it may be worth it in the long run to hunt for a bigger home.

If you invest an extra $100,000 on a two-bedroom bungalow in a neighborhood full of two-bedroom bungalows, you may never recover that full investment. It may be a much better idea to take your equity and find a larger home in a neighborhood where your investment will hold and even grow in time.

When it comes to resale value, it’s always better to have the smallest house in an area with mansions rather than a $600K house surrounded by $300K houses.

Of course, creating a joyful home should always be the first priority. Just make wise decisions that will bring you prosperity and happiness for years to come.

 

If you are buying and planning on re-selling or renting out, to get the most out of your property you might want to do some upgrades to give it curb appeal. The amount of upgrades needed would depend on a case by case scenario. Obviously if the roof, foundation, etc, needs to be done, that’s without question. I am talking about major renovations, but upgrades. That curb appeal and that make a buyer go, “wow” and pay a little extra for the place.

If you aren’t going to work with a designer and you would like to do it yourself, I suggest going to the library or buying a bunch of up-to-date home style magazine to get ideas of what’s in right now. Knowing your market isn’t such a big deal because most everyone wants something chic and stylish. Something I like to call “urban chic”; a lot of clean lines, minimalism and bright open spaces. A Zen like approach. That look is selling to the mass market right now.

First impressions are always important, so the outside of the house needs the most love. Don’t go boring either. Chose exciting colours like grey/mauve, terracotta or sage. Paint everything that needs it, wood, railing, mailbox, light fixtures, etc. I’m not talking all one colour, have some black or white in their for contrast. If they can’t be painted, replace.

If there isn’t any landscaping or it’s shot, you need to revamp the look. Take out or trim everything that is overgrown. Be ruthless if necessary. Cedars are great when they are green and small, however if they are yellow and too tall, get rid of them. Keep the look short, so you can see the entrance way. Weed the grass if any, add more seed. Clean out the dirt of debris and weeds, add more dark earth and mulch. Make a nice clean line between the grass and garden. I would invest in a couple of bushes that contrast each other and some bright annuals that light up the front.

Floors are the most important. They make such a big impact. They have to be nice. If there is hardwood I suggest refinishing them. Staining them dark is always a nice touch. Parquetry looks incredible stained chocolate. It goes from a bad 1970’s look to something modern and Asian looking. If the floors need to be replaced, bamboo and other sustainable flooring are trendy right now. If the lino is old, change it. If you can afford tile, do it.

Kitchen. If the kitchen is an old wood 1950’s style, no need to rip that out and redo it and spend all that extra money. Paint it glossy cream and add stylish knobs. You could even add a moulding.

If it’s white melamine, you could either paint it with special paint, or keep it as is. Sometimes it’s the surrounding area that can buff it up and make it not look so “melaminy”. Meaning, add a trendy tiled backsplash, a new countertop, and knobs. If the melamine has a 1980’s boarder that can be taken off, remove it for a cleaner look.

If you have the 1990 oak cabinets, they look incredible painted as well. If the cabinetry is hanging from the ceiling dividing the eating area, you could take those down and reuse them somewhere else, like an island.

Extra touches:

  • Faucets are important. They can be such a focal point to the room. You don’t have to go high end to have a polished modern look.
  • I think the investment of crown moulding adds so much value to the place if it’s done right (no need in the bathroom). Paint it glossy to give it a vintage look.
  • Keep paint colours simple and light. Painting one wall in a room dark grey or another trendy colour is fine, however use minimally.
  • Dark on light is very trendy right now.
  • Make sure the flow of colour from one room to the next is there.
  • Clean, clean windows are a must.
  • Tear down a wall if necessary to give the space more of an open feel. For example opening the kitchen to the living room. You must verify with a structural engineer before tearing anything down.
  • Pot lights and dimmers.
  • Trendy light fixtures and knobs. Don’t go high end. Places like Ikea are fine or places that reclaim vintage.

Bathrooms are easy because it all lies in the choice of the tile and counter top. White tub, sink and toilet are always in and if they are in good condition they won’t need replacing. The cabinetry can be painted a black, chocolate, white or cream. It will update any look.