Unveiling Canada Property Flipping Flyers The Deceptive Game of Quick Profits
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The housing supply shortage in Canada has led to an increase in flyers offering cash upfront for properties, catching the attention of homeowners. Real estate broker John Pasalis sheds light on this trend, explaining that these offers are typically from investors aiming for quick profits. While legally permissible, these investors prey on individuals unaware of their home's value, locking sellers into contracts with no intention of purchasing the property themselves. Instead, they profit by finding a buyer willing to pay market value, generating income from the difference in purchase and sale prices.
Pasalis draws parallels between this practice and wholesaling in real estate. Essentially, investors secure properties under contract and then seek third-party buyers for a profit. While it may seem enticing for sellers who wish to avoid the traditional hassle of staging and open houses, Pasalis highlights that they often end up selling their homes at a significant discount.
The investors cast wide nets with their flyers, targeting particularly long-term senior residents unfamiliar with their property's current market value. The flyers' presentation adds to the deception, resembling handwritten notes from individuals seeking to buy rather than investors aiming to flip deals. Crucially, Pasalis underscores that these offers do not come from real estate agents and emphasize that these investors rarely follow through with purchasing the homes, instead profiting solely by reselling the deal to another buyer.
Read the full article on: CTV NEWS
