Property flipping is when you buy up a house that needs a little bit more than love and attention and transform it into a beautiful property. Sometimes, this requires getting in a whole range of tradespeople from builders to kitchen fitters and it can be an expensive game if you don’t know what you are doing.
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On the other hand, property flipping can be a good way to get on the property ladder and start to edge your way up. Buying a home, you know you can add value to is a really smart move for most buyers even if it does take some time to complete your project.
But before you get excited, you need to do some proper research.
Talk to an Estate Agent
If you want to flip a property, you need to understand how property valuations work. Some real estate agents are great for this and some, like Doug Hopkins have a lot of experience in renovating properties themselves too.
The most important thing is that you are aware of what comparable properties are selling for and what sort of margin you are likely to make. Profiting from home renovations isn’t as easy as slapping a bit of paint around most of the time so you must look closely at what will add value to a property and what will make it more saleable too.
Find a Great Builder
A great building always comes down to the skills and talents of a great builder. The right person can do a stunning job of your property and help you to increase the value but the wrong person could easily sting you for a lot of money and then leave you with significant structural issues.
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Finding a builder is all about knowing what to look for. Ask around for recommendations and don’t be afraid to contact people a builder has worked for in the past to see their work in person. You should also widen your search and get a minimum of 3 quotes for the work you have planned. This will give you an idea of what you should be spending and how far your money can stretch.
Know the Risks
All property renovations come with risk and the main issue is not preparing for any unseen or unknown problems. Structural issues are always really expensive to solve and you may not realize the extent of the problem until it’s too late. To minimize this risk, you should always have a qualified structural engineer look at any property you intend to buy before you buy.
Flipping your first property is always the riskiest project because you don’t yet have much experience. However, most of the time you can trust your instinct. Think about what you would like to see when you walk around a property. Clean, neutral rooms, a functional layout and the sense that you could move in tomorrow are all vital. And, once the big stuff is out of the way, there’s not much a throw cushion or two can’t solve.