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  • Property-a-holics

    How to get started into 'flipping' properties

    Hi,

    My aim is to eventually to get into flipping properties and managing properties for other landlords.

    Last year I purchased my first BTL, but a lot of my funds went into this property.  End result - I am a bit skint at the moment.

    I aim to possibly remortgage the BTL next year, but this won't be until next year.

    Are there ways to get into 'flipping' via the route of a loan or bridging (100% loans) or do you have to have some funds yourself?  I intend to buy in Kent or the midlands for my first refurb venture, so will be buying a small properties to begin with.

    Is there any advice experienced investors can give me on how to get into 'flipping', or do I need to simply be more patient and wait until I can save more funds?

    Any advice will be appreciated...

    Regards

    Newbie

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    Traditional / Sophisticated / Developer

    Would you lend money to someone to start a new business that they have no experience of, with them not putting any money of their own into it so they have nothing to lose?

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    Take that as a no then.

    i had to put 25% deposit into my BTL.

    What does the bridging loan process involve?

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    Traditional / Sophisticated / Developer


    Speak to a broker to see what options you have regarding bridging.

    Do you also own a residential property as well as your BTL ?

    Would you consider selling your BTL property to release the funds to get going with another BTS project ?

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    I will get in contact with a broker I have used in the past, to see what my options are - but he's not back at work until tomorrow.

    I do own my residential home as well as my BTL...?

    My BTL is a long term plan - it went up by about £60k after I completed the refurb, but another year to go on the mortgage, as I done a 2 year deal.  IMHO, I believe it will go up by another £50k (maybe wishful thinking - but we'll see) in the next 3-5,years, due to the area improving around it as well. My intention is to remortgage the property in 12 months time and release the funds.

    Ultimately, is a business for my children to take over, when they are old enough.  I don't want this to sound cheesy, but all these business ideas are for my children to benefit later in life...

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    Traditional / Sophisticated / Developer


    I'm the same mate.. I will run mine for decent pension only. I don't care what happens to my properties when i'm gone.


    My kids can have something from me.

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    Bridging loans will typically loan up to 70% of the purchase price of the property, meaning you have to put in circa 30% and the money necessary to refurb the property.

    Buy to sell is really the domain of cash buyers, so you will need to build up a pot of cash to undertake this strategy.

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    Ok...so no different to obtaining a BTL mortgage then really

    That is my aim essentially, which is why I won't be taking out a salary from the BTL property or my next venture (touchwood - don't need to rely on it). It is all going back into the pot, to fund the 'flipping' business. However, I will need to buy my first few at least in the midlands or up north possibly, in order to buy a small property outright.  Ideally, a property that has 'development' potential, so I can add value to it...then sell or rent out and remortgage 6 months down the line.

    I am under no illusions that I will add value on each purchase, so will have a plan A and B on every purchase.

    I have a friend who recently went to two auctions, who told me that he simply got out bidded on every property he was going for...!

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    Traditional / Sophisticated / Developer


    Great post - thanks for the link

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    Traditional / Sophisticated / Developer

    Hi Newbie - have you done any property training courses? If you have, which ones?


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