As a tradesman, you are at a significant advantage compared to most of the population; you have knowledge, skills and contacts which allow you to assess a ‘renovator’s delight’ property and have a much better understanding on what work it requires, timeframes and costs.

Buying properties to renovate and flip them makes perfect sense for tradespeople to earn some extra cash as a side hustle and possibly then becoming the core of their business.

Some tips to consider:

  • Spread the word that you are a builder / developer / tradie to real estate agents. They are interested in multiple and ongoing listings from people – especially those in construction.
  • Use your real estate connections to buy off market properties and leverage listing these properties back with the agent who gives you the inside word!
  • Focus on renovating and refreshing the things which people will notice – the cosmetic items rather than the ‘bones’ of a property.
  • Team up with like-minded people in the industry to pool your money, skills and resources!
  • Buy in bulk if possible – old block of flats as one transaction and then renovate and sell them individually.
  • Look for distressed or urgent property sellers or their advocates, solicitors, accountants or brokers.
  • When doing your numbers, don’t forget to incorporate the full purchase price, stamp duties and taxes when doing your feasibility as to what the expected renovation will add to the value. Don’t kid yourself with the numbers and the end sale price – rely on agents you trust.
  • Consider Capital Gains Tax and the implications of not living in it for at least a year. Speak to your accountant about family trusts or tax minimisation vehicles and strategies.
  • Buy properties in areas you know very well and are in high demand
  • Buy properties which are in high demand in particular areas.
  • Buy properties to renovate because the numbers ‘stack up’ – do your feasibility first.
  • Speak to local council about developments which may impact (negatively or positively) your project
  • Do deals with tradie mates – make it personal and call-in favours! They may want to go in with you for the next project.
  • Get your accountant to structure partnerships or joint ventures suitably.
  • Have realistic Project Plans, timelines and budgets – don’t look for shortcuts or ‘wing it’. It’s your money you are investing so do it properly.
  • Consider the project as a ‘filler project’ in between well-paying client jobs instead of not bothering to look for external cash-flow projects.
  • Factor this into your business strategy – not instead of your business strategy.
  • Buy when times are bad for property market and sell when times are good for property.
  • Use Chocolate Money for all your finance requirements to ensure you access funds in the most favourable terms and lending conditions.

 

Chocolate Money – 1300 137 539 | www.chocolatemoney.com.au
Chocolate Money holds an Australian Credit License – 387277
NB: this article is general in nature & not to be considered specific advice.

Enquire Now