Who has tried flipping properties?

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diyhelp

Active Member
I think as people become more concerned about issues such as Brexit we will see more and more short term investment opportunities. This is something which interests me but I wondered who on the forum has tried flipping in the past and what would their advice be to a newbie.
 
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nmb

Well-Known Member
I think the key to flipping is to do a small number of trades and only focus on those where there is significant margin between investment + cost of renovations and the "updated value". That way even if the market turns against you then you still have some headroom.
 
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Longterminvestor

Administrator
I have watched the TV programs, that is about it!

Seems a lot of risk for a relatively small return in my view or am I missing something?
 
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nmb

Well-Known Member
The return can be relatively small but it all comes down to what you can add to the value of the business. Can you do some of the work? How would a renovation impact the market value? Are there buyers out there? Personally I prefer long term investment in real estate which does not put me at the beck and call of short term market movements.
 
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kchiggs

Member
I have watched the TV programs, that is about it!

Seems a lot of risk for a relatively small return in my view or am I missing something?
I've found a system , where they get the sale on the flipped before they buy the property from the vendor. Less risk(Money is there in escrow) all they have to do is keep the cost of renovations low enough.

Not sure if it works outside of Scotland though due to gazumping issues.(I understand Scottish law does not allow gazumping)
 
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nmb

Well-Known Member
I was just about to say, what would happen if the original seller backed out? However, as you are aware the system is very different in Scotland where there is no gazumping once a deal has been agreed.

What kind of margin do you foresee in this type of transaction?
 
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kchiggs

Member
Exactly in Scotland not likely to happen in in have to rely on courts and legal options to gain an approx of the Scottish system..
27% to 35% ROI depending on where the property is located. Edinburgh is problem higher.
 
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realdeals

Active Member
In many ways Edinburgh is Scotland’s version of London because it tends to lead the housing market up and down and house prices are relatively high. No surprise that Edinburgh is also Scotland’s financial capital and one which many expect to benefit from Brexit and any further independence movement.
 
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5bsuccessnyc

New Member
I think the key to flipping is to do a small number of trades and only focus on those where there is significant margin between investment + cost of renovations and the "updated value". That way even if the market turns against you then you still have some headroom.
Agreed. You need to be able to find a seller willing to sell their property for that low however - that's really the hard part.
 
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Longterminvestor

Administrator
While sensible investors will have a very strict criteria to stick to, there is a need to be a little bit flexible to ensure you dont miss out on a great deal for just a "few pounds".
 
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PostBrexitInvestor

Member
Brexit is causing a perfect storm for property investors as many investors panic at the first sign of bad news leaked from Brexit talks. True, the UK will take a while to adjust to life outside the EU but it is a relatively small island and the demand for homes continues to grow year on year - with a chronic shortages in new build numbers. Not a recipe for long term problems?
 
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