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Flipping a property at auction


Worrall Property - Leeds Investment Consultancy - Flipping a property at auction 14

Buy to sell project in Brighouse

Sam Ferrington and I bought this fantastic property in Brighouse in November. It was a large 5-bed stone terraced house that was once a lovely family home. Over the last few years it had fallen into disrepair and was ready for refurbishment. We agreed a price with the vendor and used bridging finance to buy it.

We were really keen to buy this property as there were three fairly obvious exit options. The first option was to refurbish the property and sell it through an agent as a 5 bed 2 bath family home. The second option was to turn it into a HMO and rent out 5 or 6 rooms separately. The third option was to spend a lot less on the place and sell it to another investor or at auction as a “do-er upper”.

Generally speaking, we like to have two or three different buy to sell and/or buy to let exit options for any given project. The reason is that things sometimes do go wrong and having a choice of exits significantly reduces the risk of losing money.

In the end we chose to prepare it for auction and send it in with a relatively high reserve price. If it sold then we’d make a quick return for minimal capital outlay. If it didn’t, then we’d do it up and make a larger return later in the year.

Today Sam went down to the Auction at Elland Road and waited for our lot to come up. She didn’t have to wait long as we were number 7 on the list. In what seemed like a flash, the bids came in, the auctioneer dropped the hammer, the reserve price was met and the house was sold. Happy days.

Got to say a big thank you to Damian at Monster Movers, Eddie Goldstone at Chemex and Steven Hale at SGH Developments for helping us get the property to market. Nice one guys!

If you’d like more information about this project or property investment in general, click here and we’d be delighted to discuss this with you

 

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