
In this podcast episode, Liam shares valuable insights and tips on how to successfully flip properties in the UK for significant profits. The episode begins by emphasising the importance of choosing the right location with a demand for affordable housing. He also advises on the benefits of raising joint venture funding, allowing investors to finance the purchase and refurbishment of properties. The episode concludes with advice on running the numbers, setting profit goals, and the opportunity to attend free property events hosted by the host and their team.
KEY TAKEAWAYS
- Location is crucial when it comes to successful property flipping. Choose an area with a demand for affordable housing and the type of property you want to flip.
- Raising joint venture funding can be beneficial, even if you have your own money. Using other people’s money allows you to do more deals and achieve infinite returns.
- Building relationships with the right team is essential. This includes agents, vendors, solicitors, brokers, tax advisors, architects, and a build team. Leverage their expertise and become the manager of the manager.
- Seek great tax advice to structure your purchases and access profits in a tax-efficient way. Consider setting up a special purpose vehicle (SPV) or limited company to buy and flip properties.
- Focus on motivated sellers, especially in a buyer’s market. Offer them a good deal while building relationships with agents who can bring you potential deals. Run the numbers and ensure that a flip will make you at least £40,000 in profit within a 12-month timeframe.
BEST MOMENTS
“It is absolutely essential that you choose the correct area where there is the demand for affordable housing.”
“Always make sure that you have the capital available either your money or someone else’s money… Infinite return.”
“Leverage the team, get them to do the work, you become the manager of the manager.”
“Make sure that you are structuring the purchase and you accessing the profits in the most tax-efficient way.”
“Focusing on motivated sellers making sure that you give them a good deal… and really make sure you nurture that relationship.”
FULL TRANSCRIPT
If you’re listening to the dealmaker podcast, hosted by multimillionaire property investor, entrepreneur, and Guinness World Record holder, Liam Ryan, discover how to start scale and grow your business become a better negotiator create more opportunity and make massive profit. So you can live the life of your dreams, three secrets of successful property flipping in the UK for big profit. Tip number one, location, location location, it is absolutely essential that you choose the correct area where there is the demand for affordable housing demand for the type of property that you are going to want to flip in, you want to buy something refurb it, flip it on as fast as possible. Number two, you want to focus on raising joint venture funding. Now even if you’ve got your own money to do this, my recommendation is always aim to use other people’s money, because then you could do a deal with your money, and then a deal with their money. But always make sure that you have the capital available either your money or someone else’s money. And when we’re talking about money, you can go and get dirty, horrible, smelly, disgusting houses, you can then bring them back to life. And you can do that on a bridge.
So you can go and get bridging. Or let’s just say the property is 100,000 pounds to purchase, you can learn that from an investor, give the investor five or 6% interest in one year, use that money to purchase it and do the refurb buy refurbish flip, pay the investor their money back, and then you walk out with the profit, the investors happy because it’s better than having the money in the bank, you aren’t happy, because you have used none of your own money, which means what infinite return infinite return, and guess what the investor is going to want to go again, they’re going to want to give you the money back. So the third major point here is build relationships with the right team. So my saying is work on the business, not in your business and in order to do this fast and effectively, you’re gonna want to build a relationship with a great team. So who do you need in your team? Agents, vendors, solicitors, brokers, tax advisers, architects build team. So this is really important. Leverage the team, get them to do the work, you become the manager of the manager.
Next piece of advice is get great tax advice, make sure that you are structuring the purchase, and you accessing the profits in the most tax efficient way. Is it better for you to buy in your personal name, it may be better for you to set up a SPV, a special purpose vehicle or a limited company that will then buy that property and flip that property on, you may then need a holding company. So you’ve got to get the right tax advice because as you move into property flipping, you could be making 5070 100,000 pounds per flip, you’re gonna want to make sure that you pay the least amount of tax and you keep the most amount of profits legally for you and focused in on motivated sellers.
Now these last couple of years, we have been in a seller’s market, not a buyers market and prices have gone up and up and up and up and up. But in the last three months, guess what prices have come down. In some areas, prices have gone down as much as 25%. Someone I know, in Devon, they’ve lost 25% of the value of their portfolio. You’ve got some properties in Peterborough, for example, they’ve just recently dropped 15 to 20% people cannot afford their mortgages, the cost of living crisis interest rates on the rise, inflation on the rise. Did you know that since 2001, interest rates have gone up 14 times and they will probably continue to go up. So focusing on motivated sellers, making sure that you give them a good deal. You get a good deal and build relationships with great agents agents are going to go out there and do the work for them and really make sure you nurture that relationship we have about four or five.
Agents that pretty much bring us most of our deals, you’ve got to run the numbers, I see a lot of people doing property flipping their spent a year doing it, and they walk out with 15,000 pounds. Personally, I would not do a flip unless it made you at least 40,000 pounds. And you could look to be in and out of the deal in around 12 months, that’s the whole process from start to finish. You want to get involved with something that’s relatively easy to do. Not some huge, big refurb. If it’s your first flip, maybe new kitchen, new bathroom liquor, paint, maybe an extension on the bank, making the driveway look nicer, and in and out for 1000 pounds, but run the numbers, make sure you’ve got contingency, at least a 10 to 15% contingency and make sure you’ve factored in all the costs. My recommendation is get help and support. And to celebrate what we’ve been doing over the last 12 months, I’ve decided to put on some extra property events.
So if you are new here, and you are someone that would like to come and hang out, then somewhere in the description, there is a button, hit that button or link and then come and spend time with me at one of my upcoming property events. You’ll get to meet me and my team will look after you is completely free of charge. Why? Because when you hang out, you may then decide to do more business with us. I’ve been doing this now for eight years, 28 million pounds worth of property deals, 9 million pounds of joint venture funding all different types of deals. I love business. I love property. I love entrepreneurship. So hit that button in the description. Grab yourself a free ticket. Stay tuned for more videos and I’ll see you on the other side. You’re listening to the deal maker podcast hosted by multimillionaire property investor, entrepreneur and Guinness World Record holder Liam Ryan, discover how to start scale and grow your business become a better negotiator create more opportunity and to make massive profit so you can live the life of your dreams or dreams.
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