In the U.S a "Quick Flip" often refers to finding an owner who will sell to you for or an agreed price and a buyer who will pay you more than that, then re-selling your interest in the property before you have actually paid for, closed on your purchase or registered it, in order to avoid Legal Expenses, Land Transfer Taxes and any Financing cost.

In Canada this can be deemed as 'Trading in Real Estate' without the necessary Licenses so is not advisable and in any event Canadian property owners are not typically stupid enough to do it.

More conventional and perfectly legitimate "Flipping" refers to finding properties at prices that are lower-than-average for the area, increasing their value through relatively inexpensive and primarily cosmetic ( rather than structural )renovations, 'staging', then re-selling at a profit.

As a Realtor, who makes his living when people buy Real Estate, I make more money when they do more of it and when they do it quickly and repeatedly, so you might think I'd be very enthusiastic about "flipping"

In fact, I advise clients to proceed with caution and to greatly discount most TV programming on the subject.

Before buying into the latest sure-fire method from a self-appointed ‘Real Estate Guru’ its wise to ask :

1/ If this guy is making so many millions of dollars flipping real estate, why does he need to spend his time selling me his ‘secrets’ for peanuts?

2/Why would experienced Realtors,who know a lot more about the market than most, work so hard buying and selling properties for a small commission if there are all these properties available ‘below market value’ on which large profits can be made and not only with ‘no money down’ but with ‘cash in your pocket upon closing’ ?

And when looking at the various "Fix and Flip" shows remember that

1/ The Renovation Costs shown are usually for Materials only. Whether you pay Professionals or Do it Yourself,considerable Skill and Labour are required and a substantial value must be attributed to them.

2/ It's un-realistic to just deduct the Purchase Price and Renovation cost from the Selling Price when calculating the profit. Legal Costs to Buy and Sell, Any Land Transfer Tax when you buy,Selling Costs, Lender Fees for financing, any Discharge Penalty,and the actual Interest Cost for the use of money throughout the renovation, selling and closing periods must all be considered.

Certainly there are situations where all costs can be recovered and a reasonable profit can be made.

The keys are :

1/ Make sure your Plan includes all the costs

2/ Be 100% certain about Financing Costs and Land Tax

3/ Allow for 'worst case' Time Frames for Renovation, Selling and Closing

4/ Make sure your Realtor believes the renovations will deliver the needed price.

5/ Remember that properties needing structural work may also need permits and will take longer to renovate so your money may be tied up longer.

However, if you have the financial strength to buy properties that need structural work and particularly if you are qualified to do the work yourself, they have merit.

As a Buyer Agent I know that while every buyer prefers a nicely staged property with Fresh Paint and Flooring, there is a sensible limit to how much extra they will pay for 'cosmetic' improvements because they always have the option of doing them later, for no more than it would cost the 'flipper'

For the same reason, when you first buy a property you are much less likely to get any substantial dscount from normal market value if its deficiencies are solely cosmetic, because most sellers would spend the cosmetic money before selling if it yielded a good return

Where structural items are needed there is more potential to buy well and if you have the skills to add value to Kitchens, Bathrooms, Plumbing etc your potential to profit increases as many people who would be prepared to floor and decorate are not as confident to undertake a more major renovation even with professional help.

As a rule successfull flipping requires either a lot of Renovation Skills or a lot of Financial Strength. If you have one of these it may be for you.