Real Estate Flipping Tips and Winnipeg Property Tour

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what is up you guys Matt McKeever here

with Damon again we're in Winnipeg and

we're gonna be checking out another flip

he's done on another it looks like

single-family home single-family home

there all right let's check it out so

this is another place another

single-family home this neighborhood is


East Fort Garry the one we were in

earlier was Weston so East Fort Garry

this is a really nice zone it's one of

the nicer zones as far as things moving

that kind of thing everything sells

pretty quick in the song so a very

desirable spot to be you know if you're

looking to pick up a place like this or

even if you're gonna rent it so super

good zone nothing super fancy in here

this is another this one's a 2-bedroom

1-bath it's fairly small it's only about

750 square feet but the location is

really really nice so we decided to do a

little bit of work in here this is kind

of just like the entrance room but we

still threw down some laminate in here

and cleaned it up so it does look pretty

nice as soon as you do walk into the


we did have some staging and stuff so

this place is sold now so it's gonna be

gone here and within the next week or so

I think the possession for that is on

April 2nd so it'll be gone pretty soon

we did just have all the staging in here

we just removed in the last two days but

so we'll post up some pictures of what

it looked like with all the staging so

it looked really really nice with that

their properties yeah so we do staged

them all other than my very first

property is my first deal I didn't stage

but since then I've always staged I

highly recommended if you are flipping

houses if you are doing this kind of

thing definitely worth of a little bit

of money to stage it up cells a little

bit faster the pictures on the listings

look much nicer that kind of thing

yeah so we picked this place up we we

actually bought this one off the

wholesaler so we picked it up for a

hundred and thirty-five thousand paid

about five grand for the fee so about

140 put about forty into it and we were

hoping to get to fifty but at the end of

the day we were looking to get about 239

so a little bit lower than what we were

hoping for but the market is a little

bit soft so it's gone now although 239

were still making some money 239 is it

just yeah so there was a few things one

of them in in my opinion one of the

reasons we didn't quite get the the

price point that we were after was the

the curb appeal is not the best so the

color choice on the front of the house I

think we could have swatched us walked

over the color maybe something a little

bit darker make it a little bit maybe

pop a little bit more from the street so

that was one of the main things there

was also one issue kind of outside there

was a little bit of bulging somewhere

it's not anything structural at all but

for the buyers that have a lot of

options sometimes that might something

like that made Tudor them if there is

quite if I'm not quite sure about sort

of what it is so it's really not a huge

issue but I think that played another

factor so it's at around on the market

for a little while took a few months for

us to get rid of this thing so I think

those were the two main factors the

other thing in the basement we didn't do

we decided not to finish the basement

the closest comparables in this area the

basements weren't completely finished so

we did the vapor barrier some new

insulation but it's really not a

finished space down there so if we would

have spent another 10k down there we

probably would have got that the

remainder of the 10k that we wanted the

250 so a few things there but I'm still

I'm still fairly happy with the 239

price point that we're getting but if I

could do it again I would have spent a

little bit more time paid a bit more

attention to the curb appeal and then it

might have been worth throwing another 5

or 10 grand down on the basement to

raise it up just that a little bit to

get the 250 point there and so was this

for plan essentially

in place or did you change so we changed

it so we actually this used to be a

bathroom where the kitchen is here now

so there was a wall here so we smashed

out the wall

we took the kitchen the kitchen used to

be back there so we moved the kitchen to

the front of the house just to make it a

little bit nicer the layout when you

walk in you can see the kitchen and a

living room made that kind of open

layout so we got rid of the wall moved

the bathroom back there and that was the

main thing the main thing that we

changed was we didn't rearrange the

layout a little bit there yeah yeah it's

pretty nice and I did this property with

a joint venture partner so he was the

one that was doing more of the

renovations he did a lot more planning I

actually we purchased this property when

I was still in Vancouver right before I

moved out here so when I purchased this

property it was sight unseen for me my

joint venture partner he was the one

that found the deal he'd been in here

he'd screened that he was one that did

all the due diligence and you know he

was looking to raise the capital so he

called me said he found a really nice

deal in a really nice area so I actually

didn't even use my own capital I raised

the capital from somebody else that a

really low rate so it kind of broke her

the deal you know raised the money we

did a bit of a profit split with that

investor and you know I still made it

quite a bit of money from it and I

didn't really have to do any of the

renovation so it was kind of a nice way

to do it once you do learn how to raise

capital you know you can do some pretty

cool things afterwards so do you mind

sharing with the audience maybe just

your experience or any tips when dealing

with the wholesaler yeah so me

personally I really enjoy working with

wholesalers I bought two properties now

my last not the last one so two out of

my last three I bought from wholesalers

and it's just really nice you just want

to make sure that they're maybe familiar

with the area

maybe they have you still want to do

your own due diligence I find a lot of

the wholesalers they don't really know

like the renovation numbers are kind of

a little out of whack sometimes so it's

good to really check their numbers but

one of my favorite things to do is to

buy off wholesalers because they do a

lot of the work you know they're running

around they find the deal they packaged

it up nice for you and then by the time

you get it as long as the numbers make

since you can just pay them a bit of a

fee there and take the deal from them so

I really enjoy it if you're willing to

please share but if not maybe just high

level explain for people when you hang

up a joint venture and how people decide

on the split on this one or how do you

connect splits on other joint ventures

you do yeah so I do a few different

things now so I'm doing RRSP mortgages

using people's RRSPs registering those

as mortgages on properties and those I

really like because it's it's fairly

cheap money to use you can pay them nice

returns you know much more than they're

getting from their current RSP but

you're not really breaking the bank

yourself so you're not overpaying for

the capital which I really enjoy I've

done the preferred returns when I just

pay them a certain fixed rate as a

preferred return annually I've also done

and I'm still doing profit splitting

different scenarios for profit splitting

I've done 50/50 s I've done me 60 then

40 I've done a few different things that

way so it's a little more expensive when

you are doing the profit splitting but

it's nice because you can see you're

sort of overpaying the investors that

makes them want to keep reinvesting

especially when you're just starting out

it's it never hurts to overpay a little

bit for the capital create those

relationships and then they come back

and they invest with you over and over

again so that's something that I really

do enjoy the way that we structured this

one as we just I raised the capital very

cheap it was about 7% preferred return

annually and then I lent it in on this

deal did a 50/50 split on this deal so I

still made a decent amount of money at

the end of the day and that's sort of

how I structured this one here so I sort

of brokered the deal I wasn't really the

money partner I wasn't really the

working partner but my joint venture

partner he's the one that did the flip

per se dealt with the contractors he did

a lot of the design choices I played a

some part of it but he did the majority

of the stuff with that so any tips for

people that are maybe thinking about

trying to get joint venture partner to

invest in a property they never see

before so how do you get like how big

your joint venture partner get you

comfortable with the idea right I was

leak never seen so one of the things

that made me comfortable is I knew my

joint venture partner fairly well I knew

that like I know a lot of the people in

his network I knew where he got the deal

from and they're all people that I

already have a fairly trusting

relationship with so that made it made

it a little more comfortable for me to

be able to do that sight unseen

I still checked all the numbers myself

as well I ran my own comps I did all

these things I checked up the rental

budget so I still did my own due

diligence but knowing who I was

partnering with knowing the wholesaler

that we got the deal from and like his

organization just that alone made me

feel fairly comfortable doing it without

seeing the house and then after I did my

own numbers there was a little wiggle

room there we budgeted for it just in

case we have to discount the property

for whatever reason we factored some of

that stuff into the budget so overall

after I took a look at it I was pretty

confident to pick this property up

without ever seeing it because my

partner did see it so yeah so if you

don't mind maybe just talk us through

more some tips or tricks on how to sell

your property or marketing materials or

having find the right realtor definitely

well there's a lot of different kinds of

realtor's out there there's some that

are really good with listing like the

retail realtor's are good at getting it

sold there's all the realtor's that are

really good at like if you're looking to

buy distressed assets or like really

cheap properties that can grind out and

do like lowball offers there's all these

types all these various types of

realtor's so when I'm gonna list a

property what I like to do is I like to

make sure that they're very familiar

with listing they have lots of listings

on going on currently they're really

good at marketing like I usually want to

see a marketing strategy from them of

what do they plan to do over and above

just putting the property onto the MLS

to make me feel confident they're gonna

be able to find a buyer some of them

will just put it on MLS they maybe do

like one open house and that's about it

so I want to make sure they're doing

multiple open houses you know like one

every weekend for the first at least a

few first few weekends I want them to be

doing their own marketing some social

media marketing and I want to see a plan

in place before I sign the listing

agreement with them to make sure that

they have something in mind for that and

make it sort of convince me

they're the the person that should be

listing it I like it when they do some

decent marketing materials that kind of

thing so they have you know thinks that

give to people that are very high

quality nice maybe type some type of

Flyers that kind of thing but the main

things is multiple open houses and do

some of their own private marketing

that's usually what I look for when I'm

gonna pick a listing agent Oh nice

little kitchen in here my joint venture

partners name's Ian Strucker he did a

really good job at picking all the stuff

there like the layout and everything he

did a really good job just in general

with this property so you know you know

props to him he's a he's a powerhouse

he's doing lots of really great things

right now as well mr. Ian Strucker so

very happy with how that all turned out

this is the bathroom that was moved here

it was where the kitchen was I think I

mentioned before so nice job you know

this is just a it is a starter home here

to bed one bath so it's the the material

that he picked was perfect for what

we're trying to do with the property

here a little bit of spa a little bit

more space back here we did have it

staged as like sort of a little office

area back here just to use a lot utilize

some of the open space so we did have a

desk here a few other things and some

other pictures and that kind of thing

hanging so the hookups were the

washer/dryer back here but essentially

this is the old kitchen was yeah the old

kitchen originally was back here towards

the back of the house so it was kind of

a funny layout it was fairly simple to

move all that stuff around but now it

looks much nicer the layouts away nicer

now so and then just behind you here

Matt we have the secondary bedroom I'm

kind of just into here so not the not

the biggest rooms in this place but

again this place is only about 700 725

square feet I think it is here so you

know you can't really expect a whole lot

when you're buying something that size

but for this area this is a perfect

little starter home for a couple maybe a

couple with one one child maybe or even

just a couple with no kids even this


perfect for that super good location

nice size for like an office room back

here or a bedroom and depending on what

they do with it but yeah just overall

it's a really nice starter home here in

East Fort Garry so it was fairly banged

up down here we didn't do a whole lot

there was quite a lot of space you can

sort of see now if we would have spent a

little bit of money developing this area

a little more we probably would have got

the 254 but it would have cost us that

same ten or twelve grand to do that so

you know maybe it would have been worth

it maybe not so much just the new

insulation vapor barrier down here we

used to refer or guess we still do refer

to this property as the sewage house we

have to bust up a bunch of the cement

down here because one of the sewage

lines underneath was all broken up and

burst apart so we had sewage leaking up

so what was quite the mess but that was

something that we knew about before we

died didn't really know the extent of

what we have to do for the work but we

did know there was issues down here and

we were gonna have to do some work down

here luckily it didn't cost too much

more than we were anticipating but we

definitely had to burst bust some of the

stuff up down here find that line and

patch that one line we brought

contractors through you know we had

pretty pretty nice quotes we had

multiple contractors come through we had

multiple quotes so we had a pretty good

idea of what this place was gonna cost

to fix before we got into the project

but at the end of the day same with this

one we had a pretty big slush fund

because there was a few variables that

we weren't quite sure about one of them

being the stuff that we have to do down

here for the sewage line so we did I

believe we use all of our contingency

fund so again very very important always

have a contingency fund we had a little

bit more than 10% on this one and we did

go over by over 10 percent of our what

we initially thought so you know we were

safe we had the contingency fund in

place but definitely always have one if

you are doing any flipping because there

is things that can come out of the

woodwork you know maybe up the bust up a

floor maybe you'll open up a wall and

it's all kind of messed up in there so

definitely put some money aside for a

slush for that that was awesome thank

you so much Damon Woodward for

showing us around Winnipeg letting us

check out another one of your active

projects really appreciated in fact we

really appreciate all of the Winnipeg

crew that lets us check out Winnipeg and

showed us their projects if you guys

haven't seen the other videos we have a

ton of videos from different Winnipeg

real estate investors and we check out

all sorts of projects so we check out

some vine holds a lot of flips and they

kind of break down for us just their

different strategies tactics all that

great stuff about what they're doing and

Winnipeg Manitoba and when it pictures

one of the cities we want to head up I'd

love to hit up every single city in

North America eventually why not the

world so leave a comment on this video

let us know what market you're in what

you're up to and maybe we can find it

time to come out and visit you until

next time remember making mine is a team

sport there's more than that money in

this world for us to all make it but if

you're not saving it I mean like what's

the point thanks guys