Entering the World of House Flipping: Mastering a Delicate Art for Financial Gain

House flipping, unlike property investment where you buy properties with the long term intention of selling or renting them, is the process of purchasing a property and quickly selling it for a profit.  Due to the fast turnaround, the more extensive renovations that may be carried out to increase the value of an investment property will usually be overlooked for a property intended to be flipped.

When flipping a property shorter term home-improvement tasks are often carried out.  These may include, for instance, tidying up the property by clearing it, painting and decorating and repairing many of the fixtures such as cracked tiles or chipped plaster repairing rather than replacing them.  A healthy profit can be made from house flipping within a relatively short period of time, as we saw when Witanhurst (the 90 room high gate mansion) was put on the market for ?40,000,000 more than it was purchased for several months earlier.

The Art to House Flipping

The trick to carrying out a successful house flip is to purchase the right property, carry out simple and effective improvements and then to sell it as quickly possible to an interested party. To purchase the right property it is best to focus on an area that you know.  This way, you will know the market as well as the advantages and disadvantages of the area.  Although many people that flip properties will opt for a repossession property at auction, it is also possible to buy new builds early and then sell them for a profit shortly after when the development has been completed.

The benefit of this is, of course, is that the property will require no work.  The improvements on auction properties that you might like to make may be, for instance, simply clearing and neutralising the property so that prospective buyers can see the potential it has.  To help ensure a quick sale it may be advisable to discuss advertising your property prior to completing the necessary repairs and workmanship.  This will help the estate agent to ensure that they have prospective buyers lined up when it is ready to be sold. However, if you do have difficulty selling your property and you find your profit being eaten up by costs you may want to consider approaching a company like the House Buyer Bureau.  This company will buy any property, in any location and can do so within seven days.

Not only can this firm help you to achieve your goal of successful house flipping, but they should also serve as a prominent example when defining your strategy or business model. After all, house flipping is a deceptively delicate art that requires expertise, organisation and a proactive nature.

Category: Finances