Fix & Flip – You’ve already heard about Fix & Flip, but you’re still missing the necessary depth of information? Fix & Flip is all about buying cheap and profitable properties, upgrading them efficiently and then selling them. You can learn everything you need to know about the three steps in the following article.
What is Fix & Flip?
The Fix & Flip strategy refers to buying, upgrading and selling real estate within a short period of time with the goal of making a profit.
The process begins with finding an undervalued property to buy and renovate. After the upgrading measures are completed, the property is sold on the market at a higher price.
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So Fix & Flip is:
- Buy a cheap property
- Upgrade them cost-effectively
- Sell profitably
Buy Fix & Flip property
The first step in implementing a fix & flip strategy is to find and purchase a suitable property. Remember to do a thorough assessment of the building’s fabric to understand what kind of renovations are needed to increase the property’s value and get a realistic estimate of the selling price.
Here are some tips that can help you with this process.
Search undervalued real estate
These can be properties that are in poor condition or whose owners need to sell them quickly. Nevertheless, when choosing a property, pay attention to its location. The location is decisive for the subsequent selling price.
Use of online platforms
There are many online platforms that make it easier to find suitable properties, such as social media platforms or apps and online markets. Also, private contacts can be an ideal way to find lucrative properties for the fix & flip strategy.
Build a network: Brokers, craftsmen & Co.
Making contacts with brokers, craftsmen and other professionals in the real estate sector is very helpful to be informed about possible offers. Here you can simply use online platforms or contact private individuals.
Maybe your uncle knows someone who has renovated a bathroom cheaply before.
Secure funding & capital
Make sure you have enough capital to renovate and sell the property you buy. Many fix & flip projects fail due to insufficient capital. Generous planning of costs and financial resources is therefore very important.
Fix & Flip offers the possibility to finance them. You can find out how that works here:
After the purchase of the property comes the important step of upgrading.
Fix & Flip property upgrade
Upgrading the real estate is the real work. Here you must pay attention to a detailed planning of the work. With the planning you can better estimate expenses for costs and time. The goal of the revaluation is to increase the value of the property by effective measures, in order to achieve profit. With redevelopment, renovation and modernization measures, these goals can be achieved.
In the following article, you will find out exactly what you need to pay attention to, what work is involved and what costs you will incur:
Fix & Flip property for sale
The last step after upgrading the property is selling it. This step ultimately leads to your profit, which is why it is important to choose the right approach here.
First, you should have your property appraised by an expert, such as architects or realtors. They will give you a range in which you can set your selling price.
You can see how such a profit calculation looks like in this article:
Conclusion. Fix & Flip & Capital Increase
If you find a cheap property, the Fix & Flip strategy is a profitable way to invest in real estate. However, you must keep in mind that the strategy can also be associated with risks, such as unforeseen renovation costs or difficulties in selling the property.
High risk but high reward
In summary, the Fix & Flip strategy, when executed efficiently, contributes quickly and effectively to your capital increase. You must make sure that you are well prepared and understand the risks before starting with this strategy.
For detailed information, check out our partners’ Fix & Flip guide: