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Fix and flip: Three things you need to know about house-flipping in Vancouver

house flipping vancouver

I see a  beautiful, white 10-bedroom villa, with a long, spacious veranda that leads to a vineyard, overlooking a flowery hillside. The birds are playing in the field, chirping my favourite tune, with crops that are gently swaying in the warm summer breeze. Life is awesome. 

They say, “One person’s trash is another person’s treasure.”  When it comes to flipping houses, it comes down to this:

  1. Have a vision
  2. Be brave
  3. Sell for profit

What the flip?

It’s when you see that junky house or an apartment and envision something different in that space, be it new, shiny tile floors and a fresh coat of paint, or a complete and utter gutting of the space.

So you buy it, spice it up, and sell it for profit. Flipping easy, right?

Suddenly, that run-down house becomes a mansion and that dude refreshing himself with a cold beer in front of it turns into a swimming pool. At least in your imagination they do, for now…..

Here’s the bare bones of house/ apartment-flipping:

  1. Find cheap land/ apartment. Without a good deal, there will be no margin for profit once the renovations are complete and all the other fees are paid out.
  2. Don’t spend more than 40-50K. If you are flipping an apartment that is 500-800 square feet, you should not be spending more than 40-50K on the renovation before you sell or you won’t be able to sell it for a high enough price and you might lose money.
  3. Rent it, don’t sweat it. House-flipping is less popular in Vancouver than apartment-flipping. Developers and homeowners can usually make more money just buying and holding the land for 6-12 months or more while renting the house, and making a significant profit of the appreciation of the land.

Tip: Like anyone engaged in the intricate art of renoing, you will need a cool bookkeeper to manage your expenses, file your GST return and make sure your taxes are filed properly.

That’s where we come in.
We can definitely connect you with some kick-ass professionals in the industry, or just take on your books!
Happy house-flipping!

 

 

 

 

Avoid procrastination, after reading this

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Even The Number Cruncher, Allysia Lewis gets occasionally sidetracked by the internet……

Virtually everyone is prone to procrastination. A new Donald Trump meme can induce low-brow fun and hysteria even for the most focused cat person ….and put that important tax preparation on the back burner.

The Lady in Charge Teya was interviewed by the CBC about the topic of procrastination. This was fitting for two reasons:

A lot of people procrastinate about organizing their bookkeeping and taxes (even when the tax deadline April 30, 2016 is peeking like a creepy clown behind a wall). As a the owner of a bookkeeping company Teya’s job is to help business owners become more organized and meet their CRA submission deadlines.

As perpetual procasters, we have found that Teya has an impeccable ability to avoid distractions (such as social media) and get things done. (If we could nominate her for the “least likely to procrastinate” award, we would.)

You can get there, too–we all can! Stick to the following five tips to really increase your productivity.

1. Outsource

Starting a new business can be quite costly so it is common for business owners to take on the initial roll of “everything to everyone” in order to keep costs low.

Although this isn’t a bad way to start, as time goes on and the business grows this workload can begin to become unbearable. This is where the procrastination starts.

According to an article by Phyllis Lokki in the New York Times the larger your workload the more likely you are to become overwhelmed and start procrastinating.

This is why outsourcing certain tasks is really important. It allows you to reduce your workload, free up some of your time and focus on your strengths.

For example: Teya has outsourced writing this blog to me because she is so busy making sure your taxes are filed on time 🙂

2. Lists, lists, lists and more lists

Write everything down and prioritize your important tasks. It is easy to use small tasks as a method of procrastination because they give a false sense of productivity.

Think about the revenue each task will bring you and then prioritize accordingly.

For example: Vacuuming your bedroom floor, although necessary, will bring $0 to your business so it should be last of your list. Completing work for your client will bring in revenue so it should be a priority (you can then use this income to outsource your vacuuming)

3.Limit your social media usage

This is easier said than done, especially when social media is so prominent in most people lives.

Time your usage. Create a social media plan that allows you to fit your daily social media into 20 minutes per day and stick to it OR outsource your social media management to an employee or to a firm.

It is very easy to get caught in a social media vortex. All it takes is for you click on a one link and before you know it 2 hours have passed.

4. Make sure you take breaks

Breaks allow you to refresh your mind. There are several studies that reveal taking a break to eat your lunch or to go for a walk actually increases your productivity.

So stop eating at your desk and enjoy some fresh air.

5. Only check your emails twice a day

Emails are often a procrastinators drug of choice. Don’t get me wrong they are important. However,  it is easy to fall into the trap of checking them 300 times a day.

You need to limit the time you spend with your emails so that you can focus on other important tasks.

Most people are happy/ pleasantly surprised by a same day turnaround. So even if you only respond to emails once in the morning and once in the afternoon that is usually all you need to ensure positive feedback from your customers.

A great tip suggested by Timothy Ferriss author of The 4 Hour Work Week is to set up an email response that lets your clients know exactly when and on what day you check and respond to your emails so you can manage their expectations.