Your guide to flipping a property

Flipping a property can be a fun and rewarding way of making a profit, but you need to know how to play the game successfully

Whether you call it flipping, buying to sell or trading, the principle is the same – you’re interested in purchasing a property with a lot of potential for a good price so that you can refurbish it and sell it on for a tidy profit. This is an enticing strategy for both new and experienced property investors alike.

There is nothing quite like choosing the right opportunity, transforming it with your own funds and effort, and then reaping the rewards at the end as you watch someone else enjoy the space you’ve created. It’s no wonder so many people are taken with the idea of flipping.

So if you’re thinking about joining the buy-to-sell excitement, it’s important you do your research. With that in mind, here’s our guide to flipping a property.

Why should you flip?

Flipping properties is a short-term strategy for making a profit, something which can generate large amounts of income if done correctly. Profits from one successful flip can then be put towards a larger project, generating an even greater profit. Through this method, flippers can create an impressive portfolio of completed projects, and, over time, a growing rate of successful flips can lead to an income of potentially thousands or even tens of thousands per project.

So how do you ensure that your flip is a success? There are several different factors and potential aids which you should evaluate.

Consider location

Location is an important consideration in any house buying scenario, but when flipping it is particularly important because you need to think about the kind of location that doesn’t just suit your tastes, but would appeal to a wide range of potential buyers.

In order to achieve this, you’ll need to find areas that tick a lot of boxes when it comes to generic plus points. These might include low crime rates, good schools nearby, quiet roads, convenient transport links and close proximity to popular areas with plenty of leisure activities.

Think about property type

You’ll need to think about whether you’re flipping a property for anyone to buy, or with a particular buyer (like those you can find at https://webuyhousesinatlanta.com/) in mind. For example, a three-bedroom house in a suburban area is going to appeal to a wide range of buyers. However, there may also be less competition by going more niche, so it’s really up to you how wide you want to cast your net.

Find support with bridging loans

Getting started is often the most difficult part of becoming a successful buy-to-sell investor. However, bridging finance is perfect for this kind of situation. A bridging loan is a kind of short-term finance that grants you fast access to funds, allowing you to take advantage of an opportunity such as a property or a plot of land which you want to refurbish and sell on. Once you’ve successfully sold your flipped home, you can use some of the profits to pay back your loan. There are lots of bridge lender out there who offer bridging loans, so be sure to get in touch with them and see what they can do for you.

Surrounding circumstances

There are ideal circumstances attached to flipping properties. For one thing, you want the process to be as quick as possible so you can move on to your next project with your profits under your belt. Fast transactions will help you secure your next project without a long chain, and also helps the vendor to move the property on and reduce their outgoings.

There is often more profit to be found in properties that have been repossessed, which have been tenanted for a long period of time, which have been left unoccupied, or which have housed a now deceased owner. There is often a lot of competition surrounding homes that come onto the market for these reasons. However, it is necessary to ensure that all of these locations are free of trash in order for them to be occupied by new individuals. This is especially important in the case of homes owned by deceased persons, and it could involve taking help from specialized services like Deceased estate rubbish removals to ensure the property is ready to be reoccupied, as it could be difficult to sell such a property.