Buy to Sell
1. Some ideas of how to BTS (flip) a property:
Buy, refurb and sell.
Buy, make it look worse then sell in auction (yes, it really can work!).
Buy, keep part and sell part (converting house into flats)
Buy at one auction, sell at another (or through the same auction house at the next sale)
Buy, split the title (freehold into leasehold) and sell off in many parts.
– Buy, split / change the use class and sell off.
Always Add Value
The ‘secret’ to building a strong, cash-flowing property portfolio that generates long-term wealth is…REFURBISHMENT!
Okay, we know it’s not a secret but many investors either don’t do this at all or get it completely wrong! Many investors might be able to buy properties cheaply, but it’s only those that add real value who will become successful.
Refurbishment is all about adding value.
I have a simple rule is that for every £1 we spend on improving our properties we add £3 in value. Although every property has individual refurbishment requirements, we typically spend between £4,000 and £7,000 on each property.
The only way to accurately spend £1 to add £3 in value in the refurbishment step is to manage the key elements –
Budget, Time & Quality of Work:
Budget: work out the fixed cost of the refurbishment upfront, with a full breakdown of what needs to be done and at what price (and include a contingency too).
Time: give the refurbishment team a strict schedule of works to ensure every job is completely smoothly & quickly. This helps to keep the job on budget. If you want to become a successful property investor we advise that you do the same.
Quality of Work: give your refurbishment teams very clear instructions on what work needs to be done & to what standard. This gives surveyors, and later potential tenants, the ‘wow’ factor resulting in higher revaluation estimates and final selling price.
2. Next free Dental Property Club webinar is on ‘Negotiation Mastery’ at 8.30pm Wednesday 22nd July. To register please visit https://dentalpropertyclub.leadpages.co/webinar-negotiation/
3. Back by popular demand – 1 day Wealth Creation Day For Dentists on Friday 20th November 2015. Save £100 with the early bird discount. To register please visit – http://www.eventbrite.co.uk/e/wealth-creation-day-for-dentists-stop-trading-your-time-for-money-tickets-17424103964Back to blog