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Flipping houses?!

Discussion in 'General Business Forum' started by FSBrayer, Aug 11, 2018.

  1. FSBrayer

    FSBrayer UKBF Newcomer Free Member

    5 0
    Hello everyone.
    I am currently relocating with my wife from the US to Wales (she's Welsh) and we are considering starting a house flipping business. we have saving we can use to get started, but I was woundering how is the market for it in the UK generally (or Wales / Bristol particularly).

    I have failed to find any threads on the matter anywhere on the forum, and would be happy if somone can throw me a bone.

    anything will be highly appreciated!
    thanks in advance
     
    Posted: Aug 11, 2018 By: FSBrayer Member since: Aug 11, 2018
    #1
  2. Newchodge

    Newchodge UKBF Big Shot Free Member

    10,149 2,612
    What is house flipping?
     
    Posted: Aug 12, 2018 By: Newchodge Member since: Nov 8, 2012
    #2
  3. FSBrayer

    FSBrayer UKBF Newcomer Free Member

    5 0
    Buying a property > Renovating / Repairing > Selling with a profit
     
    Posted: Aug 12, 2018 By: FSBrayer Member since: Aug 11, 2018
    #3
  4. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    3,474 1,116
    Im with you now ! You mean investing in property
    I thought it was pancake day :)

    Are you actually a real dog ! ? :eek::eek:
     
    Posted: Aug 12, 2018 By: JEREMY HAWKE Member since: Mar 4, 2008
    #4
  5. Socio South West

    Socio South West UKBF Enthusiast Free Member

    748 184
    .... provided you do your sums and research right.

    Its a very active market in the UK, with lots doing it - but not necessarily reselling.

    As the rental sector has ballooned in the UK over the last 20 or so years many have built portfolios of rented property giving good returns on investment on houses they have done up.

    Mortgages have been increasingly hard to come by, especially for first time buyers, as the relative gap between earnings and house prices has widened.
     
    Posted: Aug 12, 2018 By: Socio South West Member since: Mar 24, 2013
    #5
  6. Newchodge

    Newchodge UKBF Big Shot Free Member

    10,149 2,612
    2 nations, separated by a common language. You might find more information if you search for property development
     
    Posted: Aug 12, 2018 By: Newchodge Member since: Nov 8, 2012
    #6
  7. Ella Business

    Ella Business UKBF Newcomer Full Member

    24 1
    It is a great market, competitive but also profitable considering you know where to buy and have the necessary team behind you.

    You need a decent mortgage broker, financial adviser and a great team that can do the actual
    Renovations.

    Good luck
     
    Posted: Aug 12, 2018 By: Ella Business Member since: Jun 29, 2016
    #7
  8. estwig

    estwig UKBF Legend Full Member

    11,901 4,116
    If you need planning permission, and therefore you need someone to produce plans, lie through your teeth about being a property developer. Guys like me won't touch you if there is the slightest hint you are just in it for the money, you'll expect the Earth and be a bad payer. Same goes for builders, they won't trust you.

    Sniffing guys like this out and avoiding them, has become an art form and they know it.
     
    Posted: Aug 12, 2018 By: estwig Member since: Sep 29, 2006
    #8
  9. Gecko001

    Gecko001 UKBF Enthusiast Free Member

    2,770 436
    Just on the subject of planning permission, I was speaking to a few Americans from the mid-west recently. They told be there was no such thing where they lived. "You just buy the land and start building" I was told. Also they had never heard of building control regulations. If there are going to be, even what many would consider minor alterations to a house, often you will need both Planning Permission and Building Control approval which will add to the cost and build time.
     
    Posted: Aug 12, 2018 By: Gecko001 Member since: Apr 21, 2011
    #9
  10. tony84

    tony84 UKBF Big Shot Free Member

    5,298 901
    Im pretty sure he is using the right terminology. Neither are wrong but flipping is fine.

    You may need to put money aside for the higher rate stamp duty. Also it may affect any stamp duty relief you may be entitled to as a first time buyer - worth looking into.

    What information are you looking for?
    As a starting point, you would generally be looking at a bridging loan (30% deposit, 0.7%(ish) per month, 2-3% arrangement fees, maximum 12 month term). Assuming you need finance.
    You may find you struggle as you will have no credit history in the country so rates might be a touch higher.
     
    Posted: Aug 12, 2018 By: tony84 Member since: Apr 14, 2008
    #10
  11. FSBrayer

    FSBrayer UKBF Newcomer Free Member

    5 0
    we don't intend on building anything in the foreseeable future. the idea is buying houses and property that needs some construction / remodeling / and selling it as good as new.
    We have experience in renovation and plan to do most of the work ourselves, except for things which obviously require a licensed professional.
     
    Posted: Aug 12, 2018 By: FSBrayer Member since: Aug 11, 2018
    #11
  12. Newchodge

    Newchodge UKBF Big Shot Free Member

    10,149 2,612
    Except that most English and, I would have thought, Welsh, people have never heard of the term, so haven't the faintest idea what he is talking about!
     
    Posted: Aug 12, 2018 By: Newchodge Member since: Nov 8, 2012
    #12
  13. Newchodge

    Newchodge UKBF Big Shot Free Member

    10,149 2,612
    As someone mentioned, you need to look at Planning permission - whether you can do what you want and Building Regulations - how you can do what you want.
     
    Posted: Aug 12, 2018 By: Newchodge Member since: Nov 8, 2012
    #13
  14. FSBrayer

    FSBrayer UKBF Newcomer Free Member

    5 0
    thanks for your input!
    we we're starting to dig deep in our mortgage options, and you're right. at the moment our biggest problem is lack of credit score, and we also want to go at it full force, and we don't have additional jobs lined up for us at the moment other than that.
    what we do have is approx 100k in savings, and we intend to use up to 70k in our first flip, hopefully successfully enough to go into second flip within several months after...
    do you think it will be possible to get any mortgage to help our case? or should we consider building some credit for several months prior to going into the venture?.
     
    Posted: Aug 12, 2018 By: FSBrayer Member since: Aug 11, 2018
    #14
  15. tony84

    tony84 UKBF Big Shot Free Member

    5,298 901
    You will probably need a Mortgage broker anyway as there are not many bridging companies who deal direct with companies. Assuming you have a hefty deposit (which it sounds like you do), you should be fine. You can roll the interest up (although it then becomes compounded) meaning you do not then need to evidence an income. The biggest issue will be lack of credit history and your nationality (assuming you are not British/European) but in the bridging world, it should be possible to overcome those. There is less regulation in the commercial world.


    Fair enough, but if you are in the industry or looking to do this sort of thing, it is a valid term. I would not expect most people in the UK to have come across the term as it is not applicable to them. The same can be said for many terms in many different industries.

    https://www.ukbusinessforums.co.uk/...e-flipping-houses-does-anyone-do-this.347726/
    https://www.yopa.co.uk/homeowners-hub/how-to-flip-a-house/
    https://www.propertyinvestmentsuk.co.uk/how-to-start-a-property-business/

    It is a valid term though.
     
    Posted: Aug 12, 2018 By: tony84 Member since: Apr 14, 2008
    #15
  16. Stedurham

    Stedurham UKBF Regular Free Member

    148 15
    Buy house for 50k spend 20k on updating sell for 100k no need for Mortgage as I doubt you will get one and rates might be high while you build credit ratings
     
    Posted: Aug 12, 2018 By: Stedurham Member since: May 11, 2018
    #16
  17. FSBrayer

    FSBrayer UKBF Newcomer Free Member

    5 0
    that's sounds epic and all... but where can you find a 50k house in a 100k neighborhood? are there certain areas that are in development at the moment? any hipsters in the UK?! haha
     
    Posted: Aug 12, 2018 By: FSBrayer Member since: Aug 11, 2018
    #17
  18. alan1302

    alan1302 UKBF Regular Free Member

    158 27
    Not hard the term before with houses but quite common when talking about buying and selling phones.
     
    Posted: Aug 12, 2018 By: alan1302 Member since: Jun 2, 2018
    #18
  19. Stedurham

    Stedurham UKBF Regular Free Member

    148 15
    I’m in north east and done 3 this year and probably find another 1/2 before years out. Just takes time and to know area
     
    Posted: Aug 12, 2018 By: Stedurham Member since: May 11, 2018
    #19
  20. Mr D

    Mr D UKBF Legend Free Member

    10,042 1,053

    Some of us will have heard the term used. Expenses scandals with MPs doing it.
    Nothing wrong with doing it in business.

    http://news.bbc.co.uk/1/hi/business/8109055.stm
    https://www.theguardian.com/politics/2009/dec/10/mps-expenses-50-flipped-homes
    https://www.telegraph.co.uk/news/ne...r-flipped-homes-three-times-MPs-expenses.html
    https://www.telegraph.co.uk/news/ne...-who-flip-homes-says-Speaker-John-Bercow.html
     
    Posted: Aug 12, 2018 By: Mr D Member since: Feb 12, 2017
    #20