Cash | Foreclosure List Canada - Foreclosure Listings - Canada Foreclosed Properties

<body><p>I love watching these shows about house-flipping. I see the headaches and problems they encounter but still seem to think it would be fun and a great way to make money. What I can't figure out is how seemingly ordinary people (i.e. not already rich) can afford their own residence while also buying another house and sinking as much as $50k in renovations into it? If you already own your own home, do you just go to the bank and get another home loan? I would think the bank wouldn't approve such a risky venture at first. And even if you DO get approved, how do people get $50,000 in liquid cash to be able to do the renovation? I just don't undertand. I can understand how someone does it if they have investors, lots of personal money, or know construction workers who can do the work for cheap. But for others flipping who are doing their FIRST house, how do they do this? <br />That's why a lot of these have teams who do this. Three or four get together, often including a real estate agent (who can scout for and sell the properties) a money person (accountant, banker or mortgage broker) who can arrange financing, a contractor type ( to supervise/do the actual work) and often a money partner - a person like a doctor or lawyer with money they need to invest. normally at least one and preferably several need good credit to pull off the financing. Almost all of these scenarios involve the flipping investor(s) to get temporary financing which is normally at a high interest rate. This gets them going for a few months while they do the renovations. That is one reason they are often talking about getiing things done quickly and worrying about delays. Every day delayed costs them hundreds, if not thousands of dollars. there is a lot of profit in these things, but if you get over your head, or delayed, or the renovations go over budget, you can easily lose money. There are other ways to do it. Sometimes you can buy from a bank REO (Real Estate Owned) Department and they will be so happy to sell they will provide financing. Also the VA has a program for investors of their VA foreclosed homes. They have a Vender Financing proghram where anyone, including nonvets, can buy foreclosed homes with little down, at a good rate and no worry about credit scores. All ou have to do is show proof you have income to pay the mortgage. Those who will live in the house can get a 6.5% loan for Zero down. Investors the same but 5% down, You can get a streamlined loan process for 20% down. Good luck</p></body>