If you are looking for a project that will make you a considerable sum of money in a relatively short space of time, then look no further than property flipping. The earnings potential is massive, and if you have some money saved to make your initial investment, you could be drawing in six-figure profits with a year or two if you work hard enough and make savvy decisions.
How Does Property Flipping Work?
Often, houses fall into a state of disrepair. Years of neglect can seriously deplete the chances of a buyer being found for a home through the conventional real estate channels. This means that the property may need to be sold at auction. If there are structural issues that could cause the building to fail its survey inspection, then getting a mortgage on the house will be out of the question. This makes it unappealing to most buyers, and as such, wide open for potential from investors.
Buying the property for the lowest possible cash price will allow you to make a considerable profit once you have renovated the house. You will, of course, need to factor the expense of the work that will need to be carried out, but you can often double your investment easily. Once you have profited from one property, you may want to reinvest and repeat the process to continue building up your profit pot. Taking on multiple renovation projects at once could eventually see you making a great deal of profit over a short time.
To Use Contractors or Not
If you have a trade background, then you may wish to save a considerable amount of money and undertake the work yourself. This may add time onto the project, but the savings could mean a great deal more profit when you sell.
However, you have little experience at the type of work involved you should leave it to a contractor to ensure a professional finish. Get quotes from roofing companies, electricians, builders, and plumbers for all of the work that needs to be completed. Shop around and feel free to ask for the best price. Get recommendations from people that you know. You’ll want to get the best people for the job.
Look for Big Value Areas
You need to prioritize the areas of the property that you are going to invest your time and effort into. Anything structural, or that may be a danger should be your number one priority, as these are things that will mean prospective buyers can get a mortgage to buy the house from you.
Think about adding floor space wherever possible. If you can, add an attic conversion or renovate the basement. Creating additional rooms can add a considerable amount to the final selling price of the house.
Curb Appeal Will Help You Make A Quick Sale
Creating a professional-looking finish to the home will give it great curb appeal, so think about making everything look great, both inside, and out. This will entice potential buyers, and help you get the quick turnaround you need once the house is ready to go on the market.
