Property flipping is a high-risk, high-reward way to make money, where if you can buy property low, fix it up well and sell property fast you could potentially make significant amounts of money.
With the housing market as chaotic as it is at present, being able to find buyers quickly will help ensure you are not simply sitting on your investment.
Here are some top tips to flip quickly.
- Focus On The Fundamentals
When flipping property, you ideally want to avoid houses that require significant structural, mechanical or electrical renovations.
These cost a lot of money and time, which could potentially make them unviable as an investment.
Instead, focus on properties that are fundamentally sound but unloved, and use some interior design creativity and TLC to make the most out of a small investment.
Any investment beyond new carpets and replaced kitchen appliances might be too much to make it worth it.
Inspect any property you are looking to buy carefully before making an offer.
- Choose The Right Place
Ultimately, you want to balance the potential money you can make on any given property with the time and energy it takes to make that sale.
A common mistake new house flippers make is to price themselves out of the market. Even with the seller’s market we are currently seeing, there are limits.
One interesting quirk of the housing market is that if you price your property slightly lower, you generate more interest and create a bidding war that can actually make you more money than an overpriced property.
- Don’t Fly Before You Can Walk
Be careful of overreaching yourself, especially with your first house flip.
Do not aim for any property more ambitious than a single-family home, and try to choose one that needs less than £40,000 worth of work to it.
Higher priced properties or ones that need considerable work can require you to take risks you cannot afford, so start with renovations you can manage whilst you learn more about the process.