Calculating Margin on a Flip

[balliardi 0]

Hi All,

What method do you use to calculate the margin on a flip when deciding whether or not to proceed?

I've had a look around and seems like the standard method is take the sale price and take a percentage of that, so for example on a £400k sale if my target margin is 20% then I need to be buying and refurbing the property for £320k. In today's market this seems impossible. Even a 10% margin seems highly unlikely.

Thoughts/advice much appreciated

[haf1963 123]

With flips these days you have to find a way to buy off market or operate at the higher end of the market - very tough conditions and difficult to get to 20%. I bought some garages, got planning and then sold - so there are ways to do it if you get creative