For the latest episode of this bonus series of the property investing journey, Mike is joined by Henny Stier, co-founder and Principal Buyer’s Agent for OH Property Group, for a transparent, comprehensive and thoroughly enlightening conversation around making money out of property flipping. They covered so much ground that this episode is in two parts, with Henny returning for part two in the next episode.
With an impressive resume including a Masters from Macquarie University with a perfect GPA, experience at companies such as Accenture and Microsoft, and over four years with the United Nations and the World Bank Group, Henny brings a wealth of knowledge to her property career. Her expertise and no-nonsense approach is evident in this conversation as she paints a true picture of flipping property in the current market.
Henny and Mike strip away the glossiness that is often promoted in reality TV home renovation shows and discuss both the pros and cons of trying to turn a profit in the real world. They discuss many aspects of property flipping, including the timeframe you want to look at, why it’s harder in Australia to turn a profit, the impact of construction pricing and the type of investor that flipping might appeal to.
Henny also shares the types of properties she prefers to focus on and some of the common mistakes that people make when renovating their properties for a quick sale. As a Buyer’s Agent, Henny has a unique perspective on what to look for when a vendor has done the flipping, and provides a practical guide on how to budget for maximum return.
This episode is overflowing with great advice on when, how and what to flip so if you’ve ever thought about renovating or are just curious about what’s involved, you won’t want to miss this podcast.
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Mike is joined by Henny Stier, co-founder and Principal Buyer’s Agent for OH Property Group, for a transparent, comprehensive and thoroughly enlightening conversation around making money out of property flipping. They covered so much ground that this episode is in two parts, with Henny returning for part two in the next episode. They discuss many aspects of property flipping, including the timeframe you want to look at, why it’s harder in Australia to turn a profit, the impact of construction pricing and the type of investor that flipping might appeal to.
What we cover in this episode
- Benefit of flipping quickly
- The impact of stamp duty changes
- The trifecta of successful property flipping
- Considering your target market
- Gaining a premium from the top end of ton
- Common mistakes of flipping
- To flip or knock down
“Flipping is when someone buys the property with a deliberate and strategic intention of adding value as quickly as possible and then re-selling it for a profit so the key there is the intent and the time frame to do it as quickly as possible” Henny 1:17
“To make it profitable as a business you have to have a certain volume” Henny 3:04
“There also are investment syndicates where you have a group of silent investors and then one person who runs the show and makes the calls but is being bankrolled by a series of other silent investors, experienced property investors” Henny 5:50
“What I would consider to be really successful flips, the ones that I have seen be incredibly successful, actually target the very high end” Henny 8:30
“The finishes, the quality, has to be at the level that those people will pay a premium for because you’re trying to target the really high end, and then you put cheap appliances or cheap fittings and fixtures, and it’s a little bit tacky and kitsch then those people are not going to want to buy it” Henny 10:06
“So for me a good rule of thumb is for every dollar I put in I want to try and make $2. If it’s not going to make me $2 I’m not spending that $1 because it doesn’t make sense to spend a dollar to get a dollar back” Henny 14:27
“When you’re flipping you have to know who you’re going to sell it to – are you selling your mom and dad, are you selling to an investor, are you selling to downsize, because they all value different things” Henny 15:29
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