FLIP – DON’T FLOP. MISTAKES PEOPLE MAKE WHEN SELLING A PROPERTY
Flipping properties is now a very important part of day to day trading but if you are in a rush to make some quick money then you may be tempted to overlook some of the more important aspects of the process. This can leave you with a hole in your pocket and it may even cause you some instability for the future as well.
Poor Financial Guidance
Property is expensive and the first expense that you will pay out for will be the acquisition cost. If you have the chance then you may want to go through a provider that doesn’t ask for as much of a deposit. You may even want to consider looking into bridging loans. If you are financing the property yourself then there is a high chance that you will be paying interest as well. The interest you get is actually tax deductible and there are plenty of calculators out there that can help you to work out the total cost.
That being said, a lot of property buyers often take out more than they can afford because they feel as though the property they have found is the real deal. You need to avoid this at all times because if you take out more than you can afford then this will eat into your total profit and cause you a world of trouble at a later date. So, stick to your budget, seek quality advice and watch out for interest rates.
Time Sensitive Properties
Renovating a house can be time-consuming and in some instances it may even take you months to find a property that is suitable for what you’re looking for. Once you have the house, you can then renovate it but you may only make 10% profit. This can lead you to wondering whether the whole thing is worth it.
If you are only looking at very affordable or lower-end properties that you don’t stand to make much on then try and stick with your day job. If a property comes up in a nice area that you could make 20% or more on, then this is the type of thing you should be looking at. If a property requires too much work or if it is going to be time sensitive then assess all of your options prior to putting in an offer.
Getting the Right People
Skilled professionals often flip properties in addition to the job that they work and this is because they have the skills and the knowledge required to get the job done. Some of them even work during the summer to fill gaps in their employment.
If you are handy with tools or if you can quite easily lay a carpet and install a sink then you practically have all of the skills you need to flip a property. If you are having a professional do the work for you however, then this will seriously affect how much you can make on the house.
If you can, try and find a family friend and split the profit, so you don’t experience as much risk if the property should flop.
Being mindful of all of these things could help to provide you with a very nice profit when selling property.
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