Buying, renovating and then selling a property for profit is a practice commonly referred to in the real estate business as flipping. Following such a practice can be a great boon to your property investment opportunities, but it also involves a good amount of risk. To minimise your exposure to the risks of flipping, here is some investment advice.
Keep a professional detachment
Amateur investors can become far too attached to a property they are flipping. You need to remember that this is, above all, just business and it should stay that way. Even if it looks like a really nice property and you may feel obliged to improve it because it feels like you’ve placed too much of yourself in it, make sure you avoid going too far with your efforts. This is a planned sale, so you need to make sure you keep things within a realistic margin when it comes to improving it.
First impressions always matter
There is no way to get around this, as potential buyers will always look at what both the outside and the inside of the property look like before even considering it. If things look pretty dreadful, then you will have a hard time convincing your visiting potential buyers that the property is actually worth their time and well-earned money. You need to focus on both kerb appeal and the inner looks of the property before you move forward. This will always include a thorough cleaning, preferably done by a professional cleaning company as well as other smaller touches and possible improvements to make the deal more attractive for buyers.
When it comes to properties you plan on flipping, you need to make sure you stay away from extremes when it comes to colour schemes used for the property. Keep a more general look, consider the possible demographics you would go for and a clientele that would be the best for your intended purpose. Neutral colours will allow you to attract the largest range of potential buyers, as they will allow the property to shine without excess.
Pay attention to bathrooms and kitchens
You really need to pay special attention to these areas, as they are most likely in a pretty bad condition in older properties, so they will need more work to make them shine again. You would do well to ensure kitchen cleaning, oven cleaning and so forth are out of the way, as well as making sure you have freshened up the appliances and fixtures around the kitchen as much as you feel you need to so the property will be noticed and considered.
Working with a deadline
You need to understand that flipping properties means you will need to consider time as a major factor in what you do. After you produce a list of planned renovations with a timeline attached, your contractors will have a set timeframe to work with.
You will also need to have a good contractor if you want to have the job done right in the long run. This is one of the most important steps you will need to take, as they will handle the bulk of the renovation part of your property flip. This would take a bit of research, since not all contractors will be equally professional. Look for multiple solutions and see what you can do to find the one that works for you, based on references and online reviews or even better – personal experiences of clients they worked with.
Keep on top of the paperwork
Once you’re done with the renovation work you will need to complete quite a bit of paperwork, so you would do well to be mentally prepared for it. House flipping will mean dealing with a number of permits, depending on where you live around the UK, so make sure you’re ready for them, else you will halt your progress.
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