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  • Entrepreneurs

    Remote property flipping

    Hi everyone, I'm new to the concept of remote property flipping however I want to take the next steps to find out how to make it work.

    As I understand it the way it works is that I would go to a seller and offer the a price for their property if they choose to accept this price they would sign an option agreement/contract that essentially gives me 2-4 weeks sell the property to any potential investor, once I find a suitable investor I can then sell the property. 

    It's at this point where I would need to get solicitors involved and I have very little knowledge of what type of legal constraints apply to this business idea.

    If anybody knows how this works in more detail I would appreciate it if you could shed some light on the matter also if somebody is doing this already and is willing to show me the ropes that would also be great many thanksSmile

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    Hi Morgan,

    First of all, how do you propose to do due diligence on a property that you cannot visit?  Personally, I cannot see how you can responsibly source property when never having viewed it.

    Secondly, are you aware that you will be acting as an estate agent - introducing a buyer to a seller?  That is a highly regulated activity.

    Thirdly, how can you offer a price for something that you are not intending to buy?  How will you explain to the vendor that you are nothing more than an intermediary and the sale is not guaranteed.  How will you get them to accept an option agreement when they could just go to a High Street estate agent and get a normal sale?

    Fourthly, where are you going to find investors who will buy from someone who has not actually visited the property?

    As far as I am concerned, the concept of "remote property flipping" is a non-starter.  Sorry that I cannot be more positive, but that is my view after 15 years of being a landlord and hearing of all these "creative" strategies that are just not viable in reality.  Just my opinion of course.  Others may have a different view ...

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    Agree with Vanessa, this isnt a business unless you are actually going to complete on the sale should you not be able to sell it on. I am also assuming that these properties you find will be for sale via an estate agent.
    If i was the seller why would i agree to this? Unless you paying me a decent fee to hold the property for 4 weeks and not accept another sale etc.

    Sorry to say to me it sound  like a bonkers idea
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    Slowly working towards financial freedom

    Thanks for the replies guys, just wanted to run it past some people that knew what they were doing Smile

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    If you could give an overview of your starting position and what you would like to achieve through property investment, I am sure you would get some advice on a strategy that could be viable for you.

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