‘Flipping’ is a popular real estate investment strategy in the US and UK, and has recently become more prevalent in other European countries. The so-called flipping represents the activity of buying a property with the objective of selling it quickly at a higher price. A capital gain is achieved and all costs are covered. Think property development on a small scale.
An increase in property value can be generated in various ways:
Improving the quality of the property overall and thus its desirability. Many purchasers of property are unable to see or have no desire to undertake large refurbishments of these properties. Often opportunities of this type are sold at a discount higher than the mere cost of renovation. This is due to the time and energy required and because generally, properties of this type are attractive only for a specific set of buyers. For an investor, it is important to keep in mind that the objective is not to create a dream home but to focus on refurbishing the parts of the house which will have the greatest potential to increase the perceived value to the final purchaser, who very often will live there.
2) PURCHASE BELOW MARKET VALUE
This is typically achieved through off-market opportunities, which usually requires a strong local presence. Other possibilities are represented by auctions or by particular administrative agreements such as lease options.
3) INTERNAL REORGANISATION
Increasing the number of bedrooms or extending a property can help to increase its value.
4) CHANGE OF USE
Converting an office block into residential accommodation.
Why it works?
People move, on average, 11 times during their lives. This is usually because their housing requirements are constantly changing. For each relocation it is necessary to find a property and typically, one which is already in the desired layout.
ELVinvest offers access to investment opportunities beyond the reach of the individual investor, thus allowing the optimisation of the entire process in its two phases.
Flips are an interesting strategy, provided you know what you are doing otherwise you risk wasting both time and money. We are experienced in identifying the best opportunities on global markets and in determining the most effective strategy for each investor. We take charge of the professional execution, considering the best cost / benefit ratio.
A successful real estate trading project needs 3 elements; skills, work and capital. ELVinvest takes full responsibility for the first two, leaving you with the natural role of the investor.