Remotely renovating for profit ? possible?

Is anyone successfully using a buy/renovate/sell strategy to make consistent profits, but doing so remotely? In other words:

1. Using a buyers agent to source properties at a discount with value add potential. Specifically properties that would benefit from cosmetic renovation without the need for structural changes. This isn't as simple as just buying any old rundown property. Experience is needed to know which areas, streets and property types provide the best returns for cosmetic renos.

2. Engaging a renovation specialist to:
a) design the interior and exterior work that will deliver the most value for a specified budget (eg no more than 10% of the purchase price)
b) arrange labour and materials
c) project manage the job to completion
d) stage the renovated property to maximise impact and sale price

Or is it unrealistic for a remotely-managed flipping strategy of this kind to succeed due to the added costs of the buyers agent and renovation specialist?

Can anyone recommend any companies who are helping their clients succeed with this strategy?

Thanks in advance ...
 
I imagine it would be difficult to make money flipping even if you were experienced enough to source your own properties, and project manage your own renovations to save costs.

Can't see how it could be done with extra fees for a BA and renovation management fees.

Have you done your own research yet into the figures involved?
 
I've run some rough numbers and suspect it *could* be done, but it would be very dependent on getting a good BA who could source appropriate properties at a discount in a rising market, and an excellent renovator who knows where to target the $ for maximum return, and can complete the project on time and on budget.

An example scenario:

Market value of property before reno: $300,000

Buy at 10% discount: $270,000
Stamp duty (QLD): $8,500
Buyers Agent: $10,000
Conveyancing: $1,200
Other purchase costs: $1,000
Renovation incl project mgmt: $30,000
Holding costs over 10 weeks: $2,000
Property staging: $5,000
Total costs: $327,700

Sale price: $365,000
Agent commission etc: $11,000
Net sale price: $354,000

Profit: $26,300

Of course, there are strong arguments for holding the renovated property instead of flipping, but I don't see it as a case of either/or. A flipping strategy to build up deposits that feed into a buy/renovate/hold strategy could work well.

Thoughts?
 
Seems like a lot of effort and risk for pretty low returns. There's a lot of ways the costs and your figures could blow out too.

I think you really, really need to know what you are doing to have a good crack at this.

And finding your own properties too. If you don't know the market well enough to source your own deals, then how can you be sure about your values pre and post renovations?
 
Is anyone successfully using a buy/renovate/sell strategy to make consistent profits, but doing so remotely? In other words:

1. Using a buyers agent to source properties at a discount with value add potential. Specifically properties that would benefit from cosmetic renovation without the need for structural changes. This isn't as simple as just buying any old rundown property. Experience is needed to know which areas, streets and property types provide the best returns for cosmetic renos.

2. Engaging a renovation specialist to:
a) design the interior and exterior work that will deliver the most value for a specified budget (eg no more than 10% of the purchase price)
b) arrange labour and materials
c) project manage the job to completion
d) stage the renovated property to maximise impact and sale price

Or is it unrealistic for a remotely-managed flipping strategy of this kind to succeed due to the added costs of the buyers agent and renovation specialist?

Can anyone recommend any companies who are helping their clients succeed with this strategy?

Thanks in advance ...

Step d is the killer. you are paying a premium being away but can still increase value.
Change d to rent and access equity instead.
 
Don't forget to add GST as you will be required to pay that on the difference between purchase and sale price less GST paid

You make your money when you buy. So you have to buy very well. Your profit essentially should be locked in when you buy. This is when your DD counts

As a minimum your discount from the asking price should include your buying costs, reno costs, selling costs and staging.
 
If the numbers stack up go for it.

20k is 20k

do this 5 times pa you have a have a healthy income/deposit for other property. You ca
 
I've run some rough numbers and suspect it *could* be done, but it would be very dependent on getting a good BA who could source appropriate properties at a discount in a rising market, and an excellent renovator who knows where to target the $ for maximum return, and can complete the project on time and on budget.

An example scenario:

Market value of property before reno: $300,000

Buy at 10% discount: $270,000
Stamp duty (QLD): $8,500
Buyers Agent: $10,000
Conveyancing: $1,200
Other purchase costs: $1,000
Renovation incl project mgmt: $30,000
Holding costs over 10 weeks: $2,000
Property staging: $5,000
Total costs: $327,700

Sale price: $365,000
Agent commission etc: $11,000
Net sale price: $354,000

Profit: $26,300

Of course, there are strong arguments for holding the renovated property instead of flipping, but I don't see it as a case of either/or. A flipping strategy to build up deposits that feed into a buy/renovate/hold strategy could work well.

Thoughts?

Why use a buyers agent.

If you going to do this you need to know your $hit.
 
In most states you would need a person with a builder's licence to project manage, which further erodes potential profits as that doesn't come cheap. Nor should it, as the builder frequently has to then provide a statutory warranty for up to 7 years on the renovations.

I've never yet seen evidence that anybody, who's not a builder themselves, is able to consistently do this both a) profitably and b) legally.

(That component of profit made from a rising market doesn't count, because they're profits that have nothing to do with the renovation aspect.)
 
In most states you would need a person with a builder's licence to project manage, which further erodes potential profits as that doesn't come cheap. Nor should it, as the builder frequently has to then provide a statutory warranty for up to 7 years on the renovations.

I've never yet seen evidence that anybody, who's not a builder themselves, is able to consistently do this both a) profitably and b) legally.

(That component of profit made from a rising market doesn't count, because they're profits that have nothing to do with the renovation aspect.)

They trick is to buy screaming bargin

In nsw the threshold is 20 k..Vic it is 15 k and qld is 11 k

Plenty of money to manage a cosmetic Reno
 
In nsw the threshold is 20 k..Vic it is 15 k and qld is 11 k

Plenty of money to manage a cosmetic Reno
In Queensland, at least, the threshold is not based on what it costs you, it's based on what it would cost for licenced builder and tradies to do the same works. $11K didn't even cover replacing my just-above-ground-level deck, through my builder! My hubby built it using <$2K of materials. :eek:
 
In Queensland, at least, the threshold is not based on what it costs you, it's based on what it would cost for licenced builder and tradies to do the same works. $11K didn't even cover replacing my just-above-ground-level deck, through my builder! My hubby built it using <$2K of materials. :eek:

Yes

Always consider the labour a tradie will charge and the builders margin
 
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