The process of flipping property.

**pQ.** · 08-22-2008, 07:31 PM

Hi there,

I live in the Toronto area and was interested in the process of flipping property. I have a family friend that is a Realtor, but haven't had the time to contact him yet.

From what I've been told, you don't have to start from a lot, but there is always a chance there could be a lot to lose.

What I was interested in was "buying" new property such as condominiums before they are built, and sell them for more right after. I've been told all that your paying for in the end is just paperwork.

Your help is appreciated.

**Codythebest** · 08-23-2008, 06:00 AM

Correct. But with new construction, you'll have to put a down at one point. You may check if you can flip the contract instead, making you a check at closing but without any down payment...
The money is when you buy, not when you sell.

**dpylyp** · 08-23-2008, 07:26 PM

Not for the feint of heart;
In Toronto, the builder gets 15 % down with the signed Agreement to Purchase. Whether you put up ZERO, someone ( your financing source will lend you the 15 % as the deposit.)
You still have hydro charges, upgrades, meter fees etc, parkland dedication and whatever else is in the contract.
You need to buy a second Tarion Warranty as you are not the going to be the original owner.
The purchaser agreed to indemnify the Builder with regard to GST rebates applicable to them.

You cannot sell your contract unless the contract specifies that an assignment is possible, and how much that assignment will cost.

Between the time you get Possession (Occupancy) and the closing could be 6 to 9 months given the length of time for the condo to get registered.

Most do not actually sell till registered.

With condo's in Toronto now offering price reductions and incentives do you consider this a sound " investment?"