The basic concept is this.
Investors buy a run-down property, renovate it cost effectively and then sell it off for a profit.
They ‘buy low, sell high’.
While the concept works well when the market and property hype is on an upward trend, flipping investors can quickly lose their shirt if they don’t buy and sell at the right time.
Flipping property successfully is mainly about timing and cost control.
Get these two correct in bull markets and most investors will make good money.
But combining timing and cost control with the right knowledge and experience can see the same investors make the same project even more profitable.
This is because they know the 5W’s – Who, What, When, Where and Why.
1. Who?
Who their target market is
2. What?
What type of property to look for and buy
3. When?
When to do what and when they need to do it
4. Where?
Where to spend the money to add the most value
5. Why?
Why they’re spending the money
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
