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starting a property investment buisness

moonrakermagpie
moonrakermagpie Posts: 199 Forumite
in House buying, renting & selling
Hi,

Can anyone talk me through how to set-up a buisness in buying, improving and selling property.

I am looking at purchasing a property at a low price, with lots of room to improve, turning it around as quick as possible and reselling.

Then moving on to the next one..................

Could anyone run us through any legal requirements in setting up a buisness, the do's and don'ts and any tricks of the trade.

Will there be a need to register the buisness, if I am starting with just one house of around 200.000 selling price.

Does anyone know of a book or website that would deal with this subject.

Many thanks

Steve
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Comments

  • mikeouk
    mikeouk Posts: 534 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    steve, im sure your aware how volatile the property market is right now and im pretty sure there is going to be more major drops in property prices before it gets better. I run my own business erecting signs for estate agents and i can tell you there are very few properties selling. Your worst sceneario would be to buy a property at what you think is a good price, spending money doing it up and then by the time you come to sell, the property prices have dropped and you dont realise a worth while profit or even worse, blow money. If your set on doing it, make sure you buy at way under the asking price.
  • bo_drinker
    bo_drinker Posts: 3,924 Forumite
    moonrakermagpie wrote: »
    Hi,

    Can anyone talk me through how to set-up a buisness in buying, improving and selling property.

    I am looking at purchasing a property at a low price, with lots of room to improve, turning it around as quick as possible and reselling.

    Then moving on to the next one..................

    Could anyone run us through any legal requirements in setting up a buisness, the do's and don'ts and any tricks of the trade.

    Will there be a need to register the buisness, if I am starting with just one house of around 200.000 selling price.

    Does anyone know of a book or website that would deal with this subject.

    Many thanks

    Steve
    I can guarantee 1 thing you won't have much competition.. Go for it :j
    I came in to this world with nothing and I've still got most of it left. :rolleyes:
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Legal do's and dont's are:
    - let the HMRC know you are self-employed
    - keep good accounts
    - make sure you understand the whole buying/selling processes
    - make sure you know and understand building regs inside out
    - make sure you have adequate insurance

    Apart from that, what makes you think you can make money in today's market? That's what you need to know .... most others who were doing it are stuck with property they can't shift (search right move for "no ongoing chain" and you'll see loads). Many who were doing it are already priced at a loss.
  • Rick62
    Rick62 Posts: 989 Forumite
    I'm a bit confused. Do you understand anything about the business? Do you have experience in any/some of building, planning, funding, purchasing, selling?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • scousethife
    scousethife Posts: 926 Forumite
    moonrakermagpie wrote: »
    Hi,

    Can anyone talk me through how to set-up a buisness in buying, improving and selling property.

    I am looking at purchasing a property at a low price, with lots of room to improve, turning it around as quick as possible and reselling.

    Then moving on to the next one..................

    Could anyone run us through any legal requirements in setting up a buisness, the do's and don'ts and any tricks of the trade.

    Will there be a need to register the buisness, if I am starting with just one house of around 200.000 selling price.

    Does anyone know of a book or website that would deal with this subject.

    Many thanks

    Steve
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    sooooooo 3 years ago
    Hi, we’ve had to remove your signature. The one where you showed us Dithering Dad is a complete liar. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE Forum Team
  • Running_Horse
    Running_Horse Posts: 11,809 Forumite
    Part of the Furniture Combo Breaker
    What a great idea. I'm sure nobody else has thought of it. Just look on More 4 on Freeview for all the advice you will ever need.

    Or invest just £0.01 in a second hand copy of Sarah Beeny's book:
    http://www.amazon.co.uk/Sarah-Beenys-Price-Job-2005-2006/dp/1843403609
    Been away for a while.
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Assuming you're not insane I'd reccomend you watch all of Sarah Beeny's Property ladder program and watch it closely.
    Loads of people only made money because of a rising market. Without that it's a loss loss loss.
    It's all about price. The price you buy it for, the price you spend doing it up and the price you sell it for. The chances are prices haven't dropped enough yet to put a developers premium on property - so you'll struggle to make a profit.

    Unless you're a builder, have plumbling skills, ability to follow building regulations, great budgeting skills, it's probably not worth having a dabble at the moment.

    Many of the SB shows also featured people who abused their families getting them to work for free - on occaision she added in the cost of these "free" hours and found they'd also lead to a loss.

    If you have 200k burning a hole in your pocket then look at buying some rental properties - but even that's hard. And don't mix up property developing with renting out. Doing up a house is insane if you're going to rent it out (OK, basics like warm, dry, safe - but not tarting it all up with shiny new bathrooms and kitchens and painting) At the moment you might strike lucky on repossessions nice and cheap - some in my area you could buy and rent out but yield is still only about 5-6%.
  • brit1234
    brit1234 Posts: 5,385 Forumite
    moonrakermagpie wrote: »
    Hi,

    Can anyone talk me through how to set-up a buisness in buying, improving and selling property.

    I am looking at purchasing a property at a low price, with lots of room to improve, turning it around as quick as possible and reselling.

    Then moving on to the next one..................

    Could anyone run us through any legal requirements in setting up a buisness, the do's and don'ts and any tricks of the trade.

    Will there be a need to register the buisness, if I am starting with just one house of around 200.000 selling price.

    Does anyone know of a book or website that would deal with this subject.

    Many thanks

    Steve



    Hi, this seems a good site for what you need.

    Property Investment in a Downturn    /Crash

    Good luck

    :grin:
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • david29dpo
    david29dpo Posts: 3,976 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I had a good 7 years doing it, stopped last October. If you are interested in doing it in the future, i recommend you watch all the repeats of queen been. Some people hate her but shes got her head screwed on the right way. Nobody is likely to tell you the tricks but its not rocket science. All i will say is nobody knows the selling price of a house you tart up to sell in 3 months times. Is that a good clue?
  • spuds_2
    spuds_2 Posts: 874 Forumite
    Start with all Beeney's books, I say. I agree that there are some repossession bargains about at auction at the moment. But the problem is there are few buyers around and prices seem certain to drop further - you could easily buy a 'bargain' property spend £10k on it and in 6 months find it still only worth what it cost you.

    I am assuming you are looking at the lower end of the market - first-time buyers cannot get mortgages at the moment, and second-time buyers cannot sell their own homes. How long can you afford for your renovated property to sit empty? If you had to rent it out, would the rent cover the mortgage?

    The best advice I heard about property developing is that the profit is made when you buy, not when you sell. However, even that doesn't always hold true in a falling market.
This discussion has been closed.
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