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Looking for a new side hustle or an entirely new business? Property flipping is a great choice. This is a hands-on and practical way of making huge profits which is why it’s become so popular over the years. If that sounds ideal to you then you’ve come to the right place.
According to data collected last year, roughly 23,000 homes in England and Wales were flipped in 2020. This accounted for 2.5% of all house sales in that year. The process is quite straightforward but requires quite a hefty start-up cost and you may have to learn a thing or two about building.
To find out how you can become a property flipper, be sure to read on to find out more. We’ll uncover what it takes to get into the industry and how you can maximise your profits.
How can you flip property?
Whilst buying a house then selling it for more may seem like a straightforward task, there is a lot more to it than that. Follow the steps below to ensure success.
As with any significant investment, you’ll need to do your research before making your purchase. This research will include the property’s location and how much homes usually sell for in this area. This will let you see if you’re getting a bargain and how much profit you can expect to make.
Consider your finance options
Once you’ve found the property for you, you’ll have to fund the acquisition of the home you’re flipping. Residential or buy-to-let mortgages aren’t available for this kind of transaction which leave you with just two options:
- Cash – this could be money from a recent house sale or maybe just straight from your savings.
- Bridging loan – This is essentially a short-term mortgage which is a short-term loan which bridges the small gap between buying a selling a home. These are often expensive to acquire.
Make improvements to the property
The money made in flipping is done with the upgrades you make to the house. This will make the house appear more spacious and modern which will be attractive to buyers and thus, make them pay more than you did for the property.
Be sure to consider what the best improvements to make to raise the house value are so that you can maximise your profits. We also recommend that you purchase some tools like drills to do some basic work yourself. This means you won’t have to pay tradespeople to complete the jobs and therefore will make more margins.
Sell the property
Now that you’ve made your improvements, it’s time to make some money. Contact an estate agent or sell it yourself and flip the house for a nice profit. The money you make can then fund your next project!