Identify the Property
In the past there would be a list of available properties in a particular area that you could access via a database. Usually this process requires special access to databases or a consultant, no however, viable properties can be accessed online.
You may still need special access to the database but that is far easier to find than it once was. Once you have a suitable database you can search for viable property in your target area. This is an important first step as it can determine your profit margin.
Check the Property
Once you have identified the property and location, or the land, it’s town to have the place surveyed. You need to check if the property you are buying is being sold at the market price, whether it is worth the money, and if there is anything else you need to know about it’s condition.
Or it’s worth having some or your builder, joiners, tilers, and roofers to check the property as well as the legal contractors. Your team will give you the most accurate assessment of what needs done meaning you can plan your project and its figures more accurately from the start.
Access Funding
Most property flipping projects are funded using Bank loans. Bank loans are usually easy to access although they do require you have a very airtight business plan to follow
Flipping a project can be a risky venture and banks need to know their money is sage with you.
The other potential avenue you might consider, if a bank fails or your run into credit issues, is a venture capital firm. Although VC firms typically fund small businesses and startups, you can also convince them to invest in property flipping projects. Unlike banks they will usually want some equity.
Renovated the Property
No that you have your property and the funding to flip it, it’s time to get started. If you are funded by a bank you will have a very clear plan to follow. You will have short term targets to meet and a projected end date for building. The process should move along like a steam train.
Try to renovate the property with the buyer in mind. You want to present a modern home but you don’t need to break the bank to do it. Choose interiors that are neutral and modern, enlist the help of a commercial roofing company to install a roof that fits in with the neighbourhood and adds value to the project.
Sell the Property
With the property now flipped and ultra modern, it’s time to sell it. There are several ways to do this, most people will use a real estate firm with an interest in getting a competitive price for the house. Hopefully you haven’t run into too many snags along the way and you know exactly how much you are likely to receive. After your loan is paid back you should be left with a healthy profit. You’re now ready to go back to stage one and start again.
