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“The simplest thing I would say to anyone getting started is “flip a house”. You learn so much through the process,” Jack said. He began his career in property at age 18.
Now he runs his own property investment business, as well as Find My Houses, hooking up investors with property opportunities.
Jack, who takes Britons through the investment process on his Instagram account and Youtube channel, described the steps you can take to flip a house, as well as the financial intricacies to Express.co.uk.
Unlike buying a home to live in, you cannot take out a mortgage to flip a house.
Jack explained that using a residential mortgage to flip properties is not allowed and therefore you have two options when looking to flip properties for commercial benefit.
Jack said: “We all know people who buy their personal home and they want a fixer-upper, with the intention that they are going to do it, live there as long as they are going to live there, and then sell it one and make some money on that. That’s fine, you can get a mortgage for that.
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“But, if the intention is to buy it do it up and sell it straight away, you can’t get a mortgage for that.”
Explaining how he approaches buying a house to flip, Jack said: “There are two options that I use.
“The first is buying with cash, doing it outright.
“Whether that’s your cash or someone with a lot of money who can put it in, so you can split the profit at the end, buying it straight up with cash is the best way because you’re not paying money to borrow money, i.e. paying interest.”
But what if you don’t have the cash to stump up, and don’t have someone to split the cost with?
Jack said: “The other way people often do flips is through bridging loans.
These are short-term loans with high-interest rates, but if it means you put down less money then sometimes it is worth it.”
These short-term loans are either closed, meaning there is a fixed repayment date, or open, which you are normally expected to pay back within a year.
Bridging loans can cost fees of between 0.5 percent and 1.5 percent a month, much higher than a residential mortgage.
It is crucial to buy the right property, Jack said, if you want to make money selling it on.
“You need to find a good property,” he explained.
“What I would say is, the profit is in the purchase. It’s something I say a lot.”
Jack said: “If a house is worth £100,00 and I buy it for £80,000, even if I don’t do anything with it and I have to sell it really quickly because something has gone wrong if I then sold it for £85,000, £90,000, someone’s still buying it as a discount.
“I can sell it quickly and I’m still making money. If you buy right, it is very difficult to get it wrong.”
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