How to buy a fixer-upper and sell it for maximum profit. Flipping (or buy-to-sell) is a common strategy used by investors to build up their pot of capital.
Generally speaking, buy-to-sell opportunities arise out of 2 circumstances:
01 The seller is in a distressed situation.
This is where a seller may be in a personal position where it requires him/her to sell quickly, in order to release equity for them to move on with. Some of the common causes of this are:
- Financial shortfalls
- Emigration or relocation
- Deceased estates
02 The property is in a distressed state.
In this investment brochure, we want to focus more on distressed properties. These are usually older properties that have been neglected or have been standing empty for a long time.
Run-down properties that require a lot of work will deter most
buyers but can be a huge opportunity for investors. When it
comes to negotiation, investors will use the fact that they need
to renovate the property to their advantage and therefore, they
require lower priced / run-down opportunities.
Other than demand for the type of property that you want to flip, there are 3 components you need to get right when buying distressed properties:
THE ROAD MAP
Click on the links below and find out what you need to know about flipping a property.
1. Run your numbers and buy right
Find out how to select the right property to flip
2. Understand the renovation and holding costs
Learn more about the renovation and holding costs involved with flipping
3. Know the market value of the renovated property [How to work out the value of the property, before looking at selling it