What is Assisted Sale Strategy and how does it work?

What is Assisted Sale Strategy?

It’s the same as a traditional flip but the important difference is you don’t actually buy the property! You don’t need any finance, no deposit, no stamp duty to pay, no 6-month rule on buying and selling and less capital is needed to complete the process, yet the profit is the same as any traditional flip but without as much risk and the need for a bigger amount of capital. You can structure the deal in different ways but usually, you agree with a vendor on a price for the property and carry out the refurb and re-market at the higher value, then you sell the property and anything over and above the agreed price achieved on the sale is yours. The capital you need is for legal fees to pay the vendor's legal fees and the money to pay for the refurbishment of the property. Timescales to sell are a big factor too, so due diligence on likely timescales and associated costs is necessary. After you agree on the details have a solicitor draw up an assisted sales contract, that’s necessary too and secure all parts of the investment, especially if you partner with another investor on a JV contract basis. An assisted sale usually entails you refurbishing a tired old property and adding value by refurbishing it to a modern property, new flooring, decoration, new kitchen, bathroom etc. The desired outcome is obtaining enough of an uplift in value. The real good thing is creating a win-win situation – you can help the vendors sell their tired property, you can help investors get a good return on investment and help real estate agents get the property sold at a good price.