If you want to flip houses with assignment clauses for a profit, take a careful look at the criteria the Canada Revenue Agency (CRA) will consider when taxing you. If possible, structure your purchase so that you’ll receive capital gains treatment, and perhaps even the principal residence exemption.
Realtors who are asked to represent an assignor (original buyer) or assignee (ultimate buyer) pursuant to a Contract of Purchase and Sale should, as a minimum, ensure that:
1. The assignor has the right to assign and the assignee has the right to receive a valid assignment by referring to the original contract.
Flipping houses with assignments clauses must be used carefully to take advantage.
Questions & Answers about mortgage investment corporation (MIC) in Canada will clarify and provide you more precise details. Professional real estate investors can take full advantage of this creative way of financing to buy and hold or fix and flip. Since their lending criteria is very liberal and their main security is the value of the subject property. It is lot easier to fund a deal when you are running a business under a corporation.