Seven Tips for Flipping For Profit
Property flipping for profit if done the right way can be a challenging yet exciting way to make money. But it’s not as simple as buying a property and selling it for a profit. There are a lot of things to consider before you start. Below we outline seven tips for property flipping.
1. Research your market
Before you even start to think about buying a property to flip you need to research the market. What kind of house do people want to buy right now? Where are the best areas in the UK to invest in property?
Once you have answered these questions only then will you be able to make an informed decision? Remember you want to sell this house as quickly as possible, especially if you plan to use the profit to re-invest.
2. Finance options
You must be able to understand the finance options available to you. Will you buy the property for cash or will you apply for a mortgage? If you are unsure then it is important to speak to the right people so that you are not making an ill-informed decision.
3. Learn to negotiate
Everyone wants to get a good deal and the cheaper you can buy your property for the more profit you will make, depending on how much you need to invest in it to get it ready to sell. Good negotiation strategies will help you effectively haggle with contractors and other workers.
4. Learn how much project cost
It is important to know how much renovation projects are going to cost. Do you know how much it will be to lay new carpet for example, or how much it will cost to rewrite the house?
Every project is different but with experience, you will learn how to estimate what the average cost per project will be, and by over time, we mean as your property portfolio grows.
5. Find a mentor
One of the best ways to become a successful property investor is to find a mentor, someone who is already making a tidy profit from property investment and flipping. They will have the strategies you need to help you make the right decisions and money from your investments.
6. Make an offer
Once you find a property you like, you need to make an offer. If the property in question is selling for a low price you might have competition from other buyers.
Once you get going property flipping is a full-time job so chances are other people will know about it as well when it comes onto the market. Most importantly before you make an offer, make sure you know the highest price you can pay for a house and still make a profit.
7. Find reliable contractors
If you’re lucky enough to be good at DIY this is a way to save significant amounts of money. However, many people choose to leave renovation skills to the experts, especially for large projects so make sure you shop around and find a contractor with a good work history with some reliable testimonials.
If you want, you would like to learn more about flipping for profit we have a great strategy video for you here.
You can also purchase all eight of our property investment strategies which include advanced property development, rent to rent and building a property portfolio no-money-down.