Flippers are flopping.
A definition of a house flip is a purchase that was made, a fix up was completed, and sold within one year. You talk to any local flipper in Winnipeg and you will quickly realize that they are having a difficult time out there. Why is that? Why are their properties not selling for the money they are asking and within their deadlines? It’s simple, short term is inferior to long term in the world of real estate. I posted a video in which I taught the importance the real estate seasons play. When a flipper buys a property and then sells it, they tend to rush that process. They are trying to work fast because time is expensive to them. When a derelict house is purchased by a flipper, the problems that matter with the house are ignored. Wet basements, water in walls, rotten roofs, old electrical and plumbing, all those things take time and cost money. In the eyes of a flipper, those things are not important to a buyer because they believe buyers are dumb. They believe that buyers are naive and unable to assess a house’s bones and systems.
Let’s say a buyer buys a property in the best season for buying, the dead cold of winter, December to February. Flippers like a low entry price. That means the lot sizes are small and and the locations are poor today. They then work on fixing up the property quickly. That means cosmetics take priority not function because of time. So the house gets a lipstick job, new counters, particle board cheap cupboards, laminate floors, and let’s not forget, the modern staging job with furniture and bits and pieces. So now it’s June, they have exceeded their deadline and have missed entirely the peak selling season of February to Beginning of April. That season will not come back till next year and alas their house is up and it’s not selling.
Banks do not like flippers because they don’t make them enough money. Banks charge interest that is compounded semi-annually and they have no interest in helping flippers in the short term. Flippers often seek the help of expensive private lenders and the slippery slope continues. Why am I telling you this? I’m telling you this because flipping houses is not an investment and neither is it profitable in the long term. Today especially because we are in an oversupplied real estate market in Winnipeg.
I am advising you to do what I do and a few select of unconventional people are doing. See beyond today, look far down, decades from now. Ask yourself, in 40 years from now will the purchases I’m going to make work out the best for me? Will I make the right moves to optimize my gains? Will I succeed in doing what others are not? Will I do things differently than the average person? Will I contribute to my economy and help establish better communities and housing for people? When you think long term you don’t think about cutting corners or cheating time itself. You can be in a place where your properties pay for themselves. It’s a beautiful thing and it’s not complicated. It takes discipline, hardwork, resilience, and purpose. Contact me a 204-228-0588 firstname.lastname@example.org and I can show you how to get started.