It's been a long tradition here in Canada to earn some extra cash in the fixer upper segment of the housing market. My father-in-law built his nest egg in his younger days, from buying houses, putting some elbow grease into them, and reselling them a year or two later at a profit.

Not for the faint of heart, house flipping can be an exercise in frustration.

Well-intentioned homeowners often underestimate the time and effort it takes to add sellable value to a property. With television reality shows adding popularity to the phenomenon, the idea of gaining some cash from a real estate investment becomes ever more appealing.

The desire to earn some money with your own hard work and sweat is made even more tempting with fantastically low mortgage rates and government stimulus programs, such as the home renovation tax credit. Even with the past year's gridlock in the housing market, we are still seeing sales moving in an upward direction, making this a fantastic time to engage in the house-flipping phenomenon.

The key to a successful house flip lies with your mortgage lender. Therefore, before you even look at potential properties, talk to your lender first. It might surprise you to find out that not only does the owner have to qualify for the mortgage, but also the property itself must qualify.

Take time to sit down with the lender and discuss your plans. Different financial institutions have different criteria and special offers for home improvement loans. Are you better off with a fixed rate mortgage, or a secured line of credit? Does the home qualify for CMHC's home improvement loans program? Is the purchase an additional home outside of your primary residence? Can you afford to carry the mortgage if the renovations don't move along as quickly as you planned?

Believe it or not, your mortgage lender can find the answers you need, along with the financing, which will abundantly reduce headaches and stress. Setting out the guidelines for financing allows you to take advantage of low interest rates, avoid penalties and keeps the purchase deal from falling apart in the final hours of negotiations. There's nothing worse than becoming revved up about a deal, only to have your lender turn down the application.

Your lender will also help you decide how much cash flow you will have available to see you through from purchase to resale. If you plan on being a weekend handyman for the renovation project, time likely won't be on your side. Knowing beforehand how much money you have at your disposal, will aid you in planning your both time and spending and keep you on a secure budget.

There are ample opportunities for house flipping in today's market. Real estate has always been an attractive investment opportunity, so if you've been considering taking on a fixer upper, now is the perfect time. Putting the dollars and cents of the deal together ahead of time, ensures you get the opportunity to make the most profit from your investment.