In Polish, flip appeared from the English name “house flipping”. In today’s article, you’ll read about what flipping is and a few tips on how to effectively carry out the whole process.
What is flip?
Flip is a quick sale transaction of an apartment. It is based on a bargain, cheap purchase of real estate. The value of the purchased property can be increased by renovation. The flat can therefore resale in the condition it is in, or renovate and then re-sell.
In short, it is a bargain purchase and a profitable sale.
There are many ways to find the opportunity. However, it is not recommended to search on the Internet, because there are not only investors looking for opportunities, but also those who want to buy a flat for their own purposes. The trick is to look for opportunities where other people do not see them. These may include, for example, auctions or purchases from people who have an indebted home. The best opportunities are apartments where there are technical or legal problems. Due to the fact that rarely anyone is interested in buying such apartments. For many investors, the bigger the legal problem, the better.
Before buying such an apartment, you should check several real estate documents. Firstly, the act of ownership, secondly the question of the debt of the property manager or cooperative, and third, the land and mortgage register is the basic document that most apartments have. In this way, the investor checks whether there is an entry of a bailiff, a tax office or any execution. If the seller has purchased a flat, for example in a drop, this means that it is necessary to inspect other documents. Such a document is, for example, a certificate from the tax office that the property tax has been settled.
When buying a indebted flat, the investor usually regulates the long seller and purchases the flat safely.
Anyone who wants to start their adventure with investing in real estate can start with flip. The myth is that to start flipowanie you should have a very large capital. In order for the entire flip payment process to be profitable, the value of the flat sold should be lower by twenty or even thirty percent from the market price. Before buying, it is worth determining the minimum profit – it can be thirty or twenty thousand zlotys. If, after detailed calculation, the profit achieved turns out to be significantly lower, it is not worth investing in such a property.
Most apartments are suitable for flip. Before buying, however, it is worth getting information on which flats in a given region or city best sell and buy a flat with a similar size. Most often, investors who buy flip flats purchase those that are in terrible condition, which require major renovation. Often, in addition to refurbishment, investors make changes to the layout of the rooms in a more attractive apartment, if possible.
House flipping has its source in the United States, and flip itself means snapping. This concept has to reflect the speed of the transaction, and thus a quick profit. In order to achieve such a profit, it is necessary to calculate the costs well and to realistically assess at what price the property will be sold.