I have now gone from buying my first house renovating and selling it to buying my second house renovating it and selling it and im now just doing my third house up to sell. I have made 15k to 20k on each house. I currently have a mortgage to buy my houses and live there whilst doing them up. My question is how can i take my hobby and turn it into a full time business career. I want to have multiple properties on the go. How do property developers make the jump from renovating their own home to starting up a business ?

Comments
  • Adam

    Truthfully Matthew it’s a very big leap you are looking to take here. The process of buying properties to do them up and sell them on is both time consuming and expensive. You will know by now, having got three under your belt, that it is a cash hungry business with significant periods of time spent waiting (buying, selling etc) To make a modest living from it you would need a rather large cash injection from somewhere to allow yourself to have multiple places in the go at once.

    The issue is that if you find the money to raise an extra deposit to go full time and have rolling projects where there is overlap on the buying and selling elements, how do you propose to finance the mortgages? If you go full time at this you will be forgoing your regular salary in lieu of money made at the end of each job. Borrowing money to finance the projects becomes very difficult indeed when there is no regular income. In my experience nobody wants to lend to you if there is no fixed income.

    If it is something you truly enjoy after your first three projects you could consider becoming a project manager? You have probably made good contacts already and will have made enough errors to know what to avoid in future. This will give you a good income whilst you continue to fix up your own homes to sell on. Of course doing this also avoids any tax levied against the sale of your principal property.

    Personally I’d keep plugging away at doing up your own places for now until you’ve built a sizeable chunk of cash to springboard off into full time. The best advice I can sign off with is to engage with a friendly, local accountant before you do anything. Keeping your records straight is the hardest thing to do when your grafting your days away and its near impossible to plug the gaps at year end. I should know! The accountant will get you set up with a system with spreadsheets and whatnot to keep you organised and on the straight and narrow.

    Good luck whatever you do.

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