Buying a property, refurbishing and then selling is commonly referred to as a Buy to Flip. Property flipping involves buying a property and selling it quickly for a profit. This profit can come after buying it below market value in the first place, or after adding value i.e. modernising, adding a room, converting the garage.
Property flipping makes it possible to earn a lump sum of money in a shorter time frame than traditional buy-to-let, but it can be risky. You should be certain that you’ve actually found a property that you can buy at the right price and add value. The key to a successful flip is: –
- Buy at the right price
- Opportunity to add value
- Know your financing method and cost
- Know the acquisition costs
- Be realistic in your refurbishment budget
- Know your End Market Value and be confident of achieving this
- Have a power team to deliver the project e.g. Solicitors, Finance Brokers, Trades people, Accountants
- Plan and schedule all activities to deliver on time and on budget
- Have a contingency for the unforeseen
If you get it right you will be rewarded with great returns on investment.
If you are interested in investing in property then why not contact us on 0141 732 1156 or email contact@fftbravepropertyinvestments.com