Flipping a Property in Canada with NO Liability

From Canadian Real Estate Magazine Article- June 2010

Finding the deal

Find a property from either an owner directly (we show you how to advertise for this), your bird dog network or MLS (last resort) in a situation where they need to get out of their property. For example, a defaulted mortgage, death in the family, divorce etc. These properties must however make sense (by crunching the numbers) for a fix and flip, a rent to own, a long term hold or a number of other powerful strategies that will be ideal for the typical investor mentioned above. You must know what the exit strategy will be and “sell it” to the investor or end buyer as such.

Get property under contract

Utilizing a Purchase and Sale contract, you essentially negotiate price, terms, key clauses and a due diligence period allowing you to show the property to other potential investors or end buyers to see if they would like to buy that property. If they decide they want to become the end buyer, you, through a series of documents, are able to “assign” that property to the end investor/buyer, allowing them to close on the property instead of you.

The key clauses

Negotiate this property as you would any investment property, getting the best price, terms or both. Try to use a small deposit amount.

Aim to get the longest due diligence/conditional period you can. Don’t be influenced by the standard 5 day period. (when you are dealing with the owner, things are different than if there is a Realtor involved)

The “assignment clause” enables you to transfer the contract (including the negotiated terms and price) to another buyer that will purchase the property in place of you. It also removes you from the deal with no liability or future repercussions.

A “right to show” clause allows you to show the property with 24 hours notice to the owner. This is where your buyer list comes in. (We cover other clauses and the exact wording of these clauses in our training programs)

Making a profit

Of course, you don’t do this for nothing. For the hard work you have done in locating and negotiating this property, you can charge an amount which should be in keeping with the ultimate price that the end buyer is paying. Make sure the amount they pay you, coupled with their purchase price remains a very good deal for them.



There are a number of assignment clauses that are used by different professionals such as builders and Realtors which are designed to protect their interests and not yours. These clauses can also leave you in a liability position even after the deal is done. Be sure to use iron clad clauses that protect your interests and liability.

In conclusion

You have now successfully “flipped” a property you have never owned, never taken a mortgage on, and have no liability in. Nobody has pulled your credit, asked for a job letter, employment verification, or anything of the sort. The question now is…how many deals can you do?

I encourage anyone that is exploring the world of real estate investing to get educated by professionals that are investors first and know how the game is played.

If you missed it, check out: Flipping a Property with NO Liability – Part 1

If you would like more information on how to get involved in buying US real estate,
email me at info@propertyprohets.ca.


Skip to toolbar