Your Property-Packed Newsletter.
Welcome to this week’s instalment of the property-packed newsletter. We have the latest news, hottest topics and actionable steps you should be taking as a property investor.
It’s bitesized, easy to read and simple to follow. Delivered to your inbox every Friday.
Latest update from me
Happy Friday Everyone. It’s been a chilly one this week.
Getting the costs wrong on a refurb can make or break a flip deal. Get it wrong, you can say goodbye to all your profits, get it right and you increase your capital for your next project.
I have been busy this week collating quotes on a two up – two down terraced property refurb in Stockport SK1.
Conducting refurbs in an area that is new to you will always come with surprises. You need to understand what you get for your money to calculate future projects. A full flip refurb is not the same as renovating your own home.
You need to cater to a specific market, in this case, first time buyers. Drawing people in with a good high end spec to sell the dream, whilst also leaving it to their imagination to put their own stamp on. It’s a fine balance.
The key to a flip is speed. Greasy fast lightning speed. Without compromising on finish and good workmanship.
So how do you know what it costs?
What to do…
On your next viewing go all in on capturing all the media, pics, videos, the close ups on things you can’t remember later, open things, rattle things and generally just check everything.
Whilst walking around take notes. Play through in your head exactly what you are going to do and compile a mental schedule of works.
Now go to town on figuring out the costs of works.
- Compile a detailed schedule of works room by room, front and rear aspect, garden, also include the things you can’t see like electrics and plumbing
- Add all your media to a file that can be sent out using WeTransfer (it’s free)
- Call a minimum of 5 contracting firms (don’t go for the bells and whistles firms, they will mark you up) ask to get a desktop quote based on your schedule and media files (assume you own the property and are ready to start. They will not know)
- Set the scene and inform them this is desktop and will be followed up with a site visit should you want to proceed. This is not only saving you time but it’s actually saving them time too
- Follow up and await for your price breakdown
- If they are willing, try and get an itemised breakdown which you can further analyse and use for future projects
You might be thinking you are wasting people’s time, however, if you are serious and plan on doing multiple flips, this is a good indication of how professional they are.
When the time comes that you have a live deal, you have already laid the ground work and you know who to call.
Fun fact about me.
Don’t be jealous, by the time this email sends, I will be boarding a luxurious RyanAir flight to sunny Fuerteventura.
Met Office is reporting a week of dismal gloomy 26 degrees and blue skies. Shame.
£78 return flights from Manchester. Would you say no? Still working mind you.