Im in the wrong job....

[tony84]

Plot of land with 2 old buildings was sold near my house for £350k 2 months ago.
Just been on rightmove and the buildings are being converted in to 12 flats, averaged out they are up for around £200k each.

Lets assume they spend £1 million renovating the properties (I doubt it will be that much), thats £1 million profit in around 7-8 months!

 

[Mitch3473]

If it was really that easy, everyone would be doing it.

 

[Quickpacksupplies]

Imagine if they get squatters!

 

[iamhill]

@Mitch3473
It is indeed that easy if you use the foreign labour. Sad to say but that is the reality of this type of business.

How do i know? I had an accident with a polish gentleman a couple of months back and he runs a CONstruction company. Whilst waiting for the police I am glad to say I learned a thing or two about his trade which made me consider entering this field if the opportunity presents itself.

 

[OldWelshGuy]

It is that easy, you just need the time the contacts and you are in.

Converting to flats is great, converting to 1 bed DSS properties is also great, get the money paid into a credit union, get the credit union to pay the rent immediately and everyone is happy.

Of course you can go the other way and sell the property on as a going concern then, or as this guy has done, sell the units off immediately. (big tax bills then however)

 

[beasty]

They have put down 1.3million and hope to sell 12 flats in the same block
Who expects they will get full price on the first flat? how long to sell the 2nd,3rd etc
Its a gamble, they may never sell more than half, making zero profit

 

[OldWelshGuy]

It is indeed a gamble, YES money can be made, but it can also be lost. No game for the faint hearted

 

[swankypants69]

It's nearly always easier to make money if you have got plenty to start off with I suppose isn't in

 

[Jeff FV]

It's nearly always easier to make money if you have got plenty to start off with I suppose isn't in

The easiest way to make a small fortune is to start with a large fortune.

 

[beasty]

It's nearly always easier to make money if you have got plenty to start off with I suppose isn't in

Conversely It is always easier to lose money if you start of with money than if you dont

 

[swankypants69]

Agreed

But if a project relies on huge amounts of capital, it's always gonna be easier if you've got it in the bank to start off with

You just need to make sure you know what you are doing with it I suppose!

 

[tony84]

I do not think the contractors are foreign, they definitely do not sound it when I have walked past. They sound as mancunian as I do.

The properties will sell, they are on the expensive side but I can only assume they are done with a higher spec or are larger than the apartments/flats further down the road which sell within weeks for around £150k.

If I had the money I would definitely do something similar, there is good money in it.

 

[Julie M Davis]

It takes a lot of capital, but for the successful ones it can be highly lucrative. I wouldn't go it alone or without people you don't trust. Major investment and major stress!

 

[MOIC]

Its not only money you need.

Architects, surveyors, solicitors, marketing agents, the list goes on and on, not forgetting all the planning applications and perhaps 'sweetening" certain people in power with improvements in the local area.

When they are converting, or knocking down and rebuilding, they do not know what unexpected problems they will have and this must be taken into account.

Sure there is profit, but they are using large capital and also taking risk.

Good luck to them.

 

[UKSBD]

A friend of a friend did this about 4 years ago.

2 flats rather than 12 assured they would sell for approx. £800k each when finished.
There still on the market now, as is his £750k house that if not sold in the next few months/weeks will be repossessed.

He was a very wealth guy 4 years ago.

 

[tony84]

£800k properties have a very limited market.
£200k properties have a much wider audience.

If they do not sell for close to the asking price (assuming the spec is higher than the ones down the street) I would be very surprised. They have everything going for them.

 

[mhall]

Are you in the wrong job, or do you just not have the £350,000 + ?

 

[HarrisShubert]

The 200k market is certainly in high demand, but a lot of it will come down to the area that you are building in. Try and get buyers in early and let them pick their spec, will guarantee funds and give each apartment/home a slightly different feel.