What is flipping property?

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Property investment has always been one of the most effective means of earning money/making profits. At its core, there are two property investment strategies. The first one is buying a property and selling it for a profit while the other one is buying a property and renting it out. In this post, we’re going to discuss the first one, which is commonly known as flipping property strategy.

Flipping property

Also known as “Buy-to-Sell”, flipping property involves three simple steps: buying a property, doing refurbishments, and selling it at a profit. Essentially, the key objective of this strategy is to make money quickly.

If you can implement this short-term strategy successfully, it’s possible to make a significant profit just from one deal that you can use to fund other income-producing assets. With this, you don’t need to worry about rental income or dealing with tenants. All you need to do is sell the property for maximum profit.

Let’s consider an example to understand the way flipping property lets you make money. Assume, you purchased a property for £75,000. Your total costs including refurbishment, contingency, legal fees, borrowing costs and estate agent come to £25,000. So, your total investment for it is £75,000 + £25,000 = £100,000. Finally, you sell the property for £120,000. So, your net profit comes out as (sell price minus your total investment) £20,000.

Naturally, it acts as a great way to earn profit to use as deposits to build a property portfolio as here, you can make a hefty amount of profit quickly that can be used to flip another property.

Key things you need to consider when applying flipping property strategy

Though it’s an attractive yet short-term strategy, whether or not you could find success by flipping a property depends on a couple of essential factors. Let’s take a look.

  • Type of property: Since the objective of flipping property is to sell a property quickly and for a profit, the type of the property plays a crucial role in helping you attain success. Put simply, the property must come with the potential to attract a wider demographic so you don’t have any shortage of prospective buyers. Typically, a two or three-bedroom house appeals to a diverse range of buyers than a trendy ninth-floor apartment or a small flat does. When deciding on the property type, it’s important to focus on the ones that you can add value too.
  • Property location: This is another major factor that heavily impacts how much profit you can make by flipping a property. You may have purchased an undervalued property and upgraded it significantly through refurbishment but if the location isn’t easily accessible by public transportation or it’s a problematic area, you’ll likely find it difficult to sell and make profit. Therefore, you need to choose a property in a desirable location so you can facilitate a quick sale that brings a considerable profit your way.

Closing thoughts

To make the most out of the flipping property, you need to find a property that lets you maintain a balance between your total investment and the selling price. You should understand that while this strategy lets you make profits quickly, there are risk elements as well. So, follow the above tips, consider all associated financial and time factors, and be prepared for unpredictable changes in the market. When these aspects are taken care of properly, flipping property can become an effective strategy to earn profits in real estate.

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Reserving Your Property

What Are The Steps?

1. One of our dedicated consultants will contact you to discuss your new property purchase and answer any questions you may have.

2. We send you our Non-Disclosure & Non-Circumvent Agreement and Finders Fee Agreement for you to sign. These standard agreements protect all parties involved from disclosing confidential information about the vendors and the deal or contacting them directly.

3. You Pay your Finders Fee. We understand that you may feel uncomfortable paying your Fee at this stage, but this Fee is fully refundable and gives you exclusivity to the deal so that no other buyer can access it.

4. We arrange for you to go and view the property. We believe it is important that you or your representative view the property you are about to purchase to make sure that it is the right fit. We ask that you make yourself available to view the property promptly as most of the vendors are looking for a quick sale and require speed and certainty.

5. After viewing the property, we will discuss your feedback. You decide whether you wish to proceed with the purchase/ rental.

6. If you wish to proceed, that’s fantastic. We will send you a Purchase Agreement and request some basic information: Full name and address of the buyer, proof of I.D, address, and solicitor details etc.

7. If you do not wish to proceed, that’s ok too. We will refund 100% of your Finders Fee. You email [email protected], and we will ensure a full refund within 48 hours of your email.

Sourcers Info

1. Upload Your Property to our Portal

After you have created your User Account, you can proceed to upload your property deals.

2. Assessing your deal

One of our Support Team will review and assess your property and will call you to finalise the details if required.

For us to assess and publish  your property, you will need to upload:

Full Address
Pictures of the property
Floorplans
Videos if available
Comparables of similar properties sold in the area and for sale
Rental comparables

If we are happy with everything, we will publish your property live on our site for waiting buyers to access.

3. Prospective Buyer

As soon as your listing is live, our buyers will be able to view the property details and contact us to reserve your property. Our Support Team will speak with the buyer to formally reserve the property and arrange a viewing. We will liaise with you to fix the most convenient time with the vendor for viewing.  There is a better prospect of agreeing on a sale if the buyer views the property quickly, so we ask that you are flexible & prompt with the viewing arrangements.  

4. Completing Your Sale

Once the buyer has agreed to purchase your property, our team will manage the process until completion. We are available to assist with all matters to get the deal closed as quickly as possible. 

We are available by email: [email protected]

We are transparent about our fees, and we split the Finders Fee on a 50/50 basis on properties sold.