Millionaire real estate mogul wannabe?
It seems that everywhere you turn, someone or something is encouraging us to “buy, fix and flip” real estate as a sure fire way to financial freedom. There’s no end to the how to books, get rich seminars. Even the television is flooded with popular shows like “Flip This House.”
Flipper Nation presents the down side in a most humorous way. I came across this amusing video from Flipper Nation titled, “The First Flip” while reading Real Estate Snippets, the blog of Minneapolis, Minnesota real estate agent Bonnie Erickson. Check it out. It’s kind of fun.
Flipper Nation: The First Flip
There’s more where this came from at: FlipperNation.com
If you cannot view this video, you can check it out at YouTube instead.
Bonnie also provides eight solid points of consideration for wannabe real estate investors. Read her post here.
I’m always happy to answer your Saskatoon real estate questions. Feel free to call me locally at 241-6676, toll-free at 1-888-978-6676 or drop me an email.
12 comments so far. We'd love to hear your thoughts.
April 3rd, 2009 at 12:16 PM
Thanks for the mention, Norm. There’s so much more to the “wanna be” than meets the eye. I actually started real estate through the zero down seminars. I knew I wasn’t going to work hard enough and risky enough in rehabbing houses to be a millionnaire overnight, but it got me started in a career I LOVE!
April 3rd, 2009 at 12:16 PM
My pleasure Bonnie. Yours is one of a handful of blogs which I visit on a regular basis. I appreciate the fact that your stuff is largely written for consumers. It seems to me, at this time anyway, most agents are targeting other agents with their blogs.
That’s an interesting story about how you came into the business. Seems that you found your niche.
Thanks for taking time to leave a comment.
April 3rd, 2009 at 12:17 PM
Thanks for checking out our site, Norm. I see you love a good real estate bargain when you see one. I, myself, am trying to be as cautious as possible, but I have to deal with Richie, who wants to spend money everyday to get to our goal: co-millionaires. Episode two coming out this week – make sure you sign up for the podcast.
-DK
April 3rd, 2009 at 12:17 PM
Hey David!
Thank you for checking in here.
I really enjoyed your website. I’m eagerly awaiting the release of episode 2 and I will check out the podcast.
Best wishes for a better 2nd flip.
April 3rd, 2009 at 12:22 PM
Norm, Did you read my latest Active Rain Blog post about all the ways to become a millionaire? Pretty interesting stuff. Here is the link:
http://activerain.com/blogsview/24642/Which-1-Of-Us
April 3rd, 2009 at 12:23 PM
Hi Carol,
Thanks for visiting.
I did check out your post. I have to say, most of those “methods” are a little long on odds. There certainly is no easy way. Sure, some people find the luck, but most wealth is built on a solid plan of hard work, paying down debt, saving as much as you can and investing it wisely.
Best wishes to you as you build your fortune.
April 3rd, 2009 at 12:23 PM
Yes, property flipping is very common in Bangkok these days, as the following article published in the Bangkok Post explains; http://www.property-bangkok.com/viewarticle.asp?id=6
April 3rd, 2009 at 12:24 PM
Bob,
Interesting to know that “flipping” goes on everywhere. Some here have suggested that the Canadian government should implement a special tax on properties which are turned over quickly. Seems that experience suggests that the buyer really ends up paying that as well.
Good luck.
April 3rd, 2009 at 12:24 PM
Talking of Asian countries, in Thailand they have a flat rate tax that is 3.3% of the sales price if you sell the unit within 5 years of purchase, and 0.5% if you sell after 5 years. This is specifically designed to tax speculators who do turn their property over quickly.
Ultimately, most diligent sellers will calculate this tax before selling and factor it in to the price, so yes the buyer is the one who pays in the end.
Comparitively in the UK, where I originated, they have a pure capital gains tax system based on sales price less purchase price factored for inflation. This would seem to me to be the best system, because if the seller ‘flipped’ the property quickly with a large profit, then the tax will be high as the inflationary element would be very low because of the short time frame.
http://www.bangkokcondo.org
April 3rd, 2009 at 12:25 PM
Bob,
That sounds reasonable. Always interested in learning how things are done elsewhere.
In Canada, only 50% of capital gains of this kind are taxable, so it does kind of encourage this sort of activity.
April 3rd, 2009 at 12:25 PM
Hi Norm,
The implementation of sales taxes are a great way for governments to manipulate the property market, but it occured to me that most condominium ‘flipping’ in the Bangkok market take place before the condominium is finished and therefore before the title deed has ever left the developer. This means that the government doesn’t get any money in taxes from the sales of these properties, because the seller is simply selling the “Sales Contract” with the developer, i.e. the right to purchase and not the unit itself as the building isn’t yet finished.
The Government perhaps hasn’t yet wised up to this fact, otherwise you would think that they would impose some new tax on “Transfer of Sales Contract”.
April 3rd, 2009 at 12:25 PM
I’m seriously considering getting into the flipping market myself now. Just hope the economy stays ok.