All Forum Posts by: Chris Scott

Hi Aaron,

Great work on getting started early, that really gives you an advantage in the investment game.  In my experience to get started, using the residence you live in as an investment really works well.  The process many people refer to as "house hacking" can have many of the upsides of real estate investment while reducing many of the risks.

I got started that way and it is a very comfortable way to start investing while still being able to sleep at night.  When you get a little bit of money together look at even a small condo that needs some work and fix it up while you live in it.  You can do the reno's on your schedule, when you have the money.  Once your done with it, rent it, or sell it, or refinance it.  Reinvest as you feel comfortable and repeat.   In doing this process you will learn all the same steps required to do the big flips.  If it is your first residence in Alberta you can of course get in with very little down and with current low interest rates its very affordable.  Of course it is always better to pay 20% down and save the CMHC fees but hey that's up to you.  Most people believe Calgary is now entering a buyers market so you may be able to pick something up at a discount when your ready.

Others often suggest getting others peoples money and using it to invest.  That works too.  I like to stick with what I can add value to.  Ask yourself the question what can I do to add value to this property.  Am I good at renovation? Am I good at wholesaling/finding a deal? Am I good at the property management side?  What can I add and what do I like to do? 

I picked up my real estate license to do my own trades and would highly recommend it once you start looking for multiple properties.  It saves you on the flip commission twice and who is better to do the research on where to invest your money than yourself.  I love watching the market every morning and seeing what new is out there.  If you enjoy doing it, its not a job.

All the best,

Chris Scott

@Ram Srinivasan, thanks for your input.  My thought process is that I am planning to sell a house and a condo in Calgary  and looking to buy another house in Edmonton.  Those 3 trades will add up to around 1.5 million.  My thinking is that if I can save even 1.5% on those trades (20k), it will pay for my license and brokerage fees for a while.  I also will gain access to all the information (as a realtor) to make the best decisions in buying my next flip properties.  I appreciate if you have feedback on this.

Thanks for the info Colin.  The fees that you are paying seem workable for personal trades. 

I hope that I can find a local brokerage that will have a similar cost structure.  I have heard of some pretty exorbitant brokerage fees out there so it has me a bit worried.  I will look into hard money lenders here locally and see what the holding costs are going to be.

Thanks Roy for passing on my questions.

All the best,

Chris

Hi all,

I am a new member to BiggerPockets.  I am currently getting my Real Estate license in Calgary, Alberta Canada.  My intent is to expand into doing more real estate flipping.  My thinking is that with my own license I will have access to more information in making smart purchase decisions.  Also the license will reduce my flipping costs on the resale side.

I am new to working with brokerages.  Are there any real estate agents out there that could tell me about what costs I should expect to pay to a brokerage.  I have heard they vary widely from commission based to flat fee.  I am looking to do almost exclusively personal trades.  Are there brokerages out there that cater to this type of agent.  What costs will I likely incur with such a brokerage?  I am in Calgary, Alberta.  Local info is greatly appreciated. 

Anyone have experience in this field?  I have concerns that I will not be able to do enough volume to making having my own license worth while.  My plan is to be flipping only 1-2 houses at a time for at least the first 1-2 years. 

I also am looking for information regarding the best way to finance houses for the flip. Average house prices here are 400-500k.  I have enough cash for 25% down on two houses plus flip money.  What is the best way to finance the rest?  I assume standard mortgage is unusable due to short term penalties.  I am planning 2 month maximum terms on each flip.  What interest rate is one likely to pay on these short term loans.  Any wisdom on the best way to finance is appreciated!

Thank you,

Chris Scott