How To Flip Property For Profit

Flipping properties is a business that involves large sums of money. Before we move into how to engage in this business successfully, it is worth pausing to be clear on our reasons for doing this and the objectives we hope to achieve through flipping properties.  Once we know what it entails, we can test how far it will go towards achieving our personal objectives.

We need to identify two properties in the best street: the worst one, and the best one. Why? When we know what the best property looks like we know what standard we have to exceed to deliver the most valuable property to sell. When we know what the worst looks like, we know the starting point. This gives us two important sets of data: (1) the requirements for the transformation, which leads to the work we have to do and the cost; and (2) the budget available to us to pay for the work; pay for the transaction costs incurred in buying and selling; and the profit we expect to gain.

Who needs to participate in this project to make it a success? The obvious group are the tradespeople - carpenter, plumber, electrician, plasterer etc - who are going to work on the property. Next are the professionals who will advise on the work - for example, the lawyer, surveyor, structural engineer, etc. Next are the suppliers of materials and equipment that will go into the property. Next is the project manager who will ensure the transformation happens to meet the requirement within the time and financial budgets. Next is the dealmaker, who puts it all together. That last person is likely to be you. This lecture shows how to recruit and engage the rest.

The previous stages have enabled you to develop a statement of work for each trade and, with your team's help, you have arrived at an estimate of the cost. The problem you now have to solve is finding the money so you can make the money the project promises. Here we examine several different sources of finance, and the costs in time and money each incurs.

This is where you really make your money. Sure, you still have to purchase the property, put your design into effect, and then sell it. But here you figure out how you are going to do this, what the profit should be, and what risks you have to manage for the project to be a success. Here we draw on business planning and project management disciplines to ensure that the plan you come up with is credible and achievable, and that the business plan is compelling.

You are all set to implement your plan to turn the worst property in the best street into the best property in the best street. So let's do this! Here we address the various stages of work between clearing out the old and beautifying the property for sale.

You have only one chance to make a first impression, so dress your property to impress! This is the secret to securing the highest price for what is now the best property in the best street, and securing it quickly. Then it's time to celebrate the profit you have gained, and learn the lessons from your experience. Oh yes, and time to go find the next worst property in the best street and do it all again, now you have a formula and a team.

Some students have mentioned that they have taken copious notes from this course. So, to save you doing this we have included here a PDF of the course.