Flipping properties is a very popular way in the USA or Western Europe to earn a lot of money and at the same time to realize your design ambitions. In a nutshell: this is about renting, buying and thoroughly renovating properties that, for the average person, are completely ruined and of little or no value. However, the specialist is able to see a huge sales potential in them. This trend quickly became established in our country as well.
What is the most difficult thing?
Flipping properties is not an activity for everyone. Apart from the need to have an appropriately high budget, it is necessary, first of all, to be able to accurately assess the future value of the property. It is necessary to take into account its potential, i.e. to be able to analyse what the interest in a given property may be after its renovation.
Account should be taken of the expected cost of acquisition and renovation, the maximum saleable amount, the location, and any difficulties that may arise at the stage of upgrading (e.g. difficulties with the restoration of monuments). However, there is a constant rule: the more difficult it is, the more exciting and the more profit you can make.
The main problem is finding such attractive properties with potential. This is particularly true of our market, as most of the ruined facilities are located in the resources of local governments or numerous co-owners. In the USA, where flipping properties are most popular, ownership issues are much better organised.
How much can you earn from it?
This already depends on a great many elements. The key issue is whether the property can be renovated for reasonable money. The less you have to invest in it, the higher the return on sales. Another important issue is, of course, location. It is most cost-effective to modernise ruins close to or on the outskirts of cities, but with convenient access.
Real enthusiasts of flipping properties hunt for properties that offer the greatest opportunities for innovative architectural solutions. So they do NOT need to be houses or flats, but even barns, stables, factory buildings, water towers, shops, or even churches.
Finding a suitable purchaser
Real estate developed under the flipping properties concept is not typical, so it cannot be simply placed on the market. They are usually purchased and renewed for a specific customer or target group. You have to have a lot of money for such a purchase, and you also have to be willing to live in an extraordinary, even extravagant place. There are not many such buyers, at least in our country.