Stage 1: Find a Suitable Property
The first step to flipping a home is finding a suitable property. You might be buying ones to renovate or building a property to sell on – in which case you would need to find land as well. At one time you had to search databases manually or use a property consultant, but times have changed.
These days the best way to find property is to access online databases that specialise in suitable property types in your area. You can usually search for property or land. The algorithm searches the target areas efficiently and throws up viable options.
Stage 2: Is Your Property Suitable?
The online search databases will identify property in the target area that fits your search terms, however that doesn't mean it will be viable to flip. You will then have to evaluate the property by carrying out a survey. This will assess the overall work and profit you might expect.
Successfully flipping a property means carrying out the due diligence and ensuring the property is viable for turning a profit. There are a series of questions you need to ask at this stage to ensure you are not wasting your investment funds. Don't cut corners.
Stage 3: Funding and Loans
Next, you will need funding for the acquisition of the property and for renovation work such as replacing the roof and any building work that needs carried out. You will need a commercial roofing supplies company for the roof and building supplies company for the structural repair work.
There are several ways to access funding for this type of project. You can go down the bank loans route and use bridging loans for buying and selling, or you can access funds through other investment channels. Research your options. In some cases you may find a VC company interested in your proposal.
Stage 4: Fixing up the Property
If you are a tradesperson you will be able to save money on the costs of renovating the home and increase your end profit. Often this is why many individuals opt to flip a property in the first place. If you don't have these skills consider how to get the best value for the rebuild.
Normally this does involve some hands on effort yourself, even if you aren't an expert. Try to leverage friends, family members and business partners too, if you want to increase the profit margins of the property. Also consider tour choices for the interior design, and how that might influence the final sale.
Stage 5: Flip the Property
Flipping a property successfully is down to planning more than anything. To ensure you build and sell the property for profit you need to make sure you make the right decisions initially and throughout the project. The last thing you want is for the property to go over budget.
Create a plan for flipping a property and make sure you know the main tasks and contacts you need at every stage of the process. There should be some margin for error but the tighter you can make your plans the likely you are to achieve the expected results.
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