A step-by-step guide to flipping properties with Stake

At Stake, we aim to provide our investors with a diverse range of opportunities, and one of our most dynamic offerings is fix-and-flip; a short-term real estate investment designed to maximize returns within a condensed timeframe. 

This post will break down the entire flip process, from identifying high-potential properties and managing renovations to resale and realizing returns. 

You'll also discover why real estate flips with Stake are a game-changer and how Stake simplifies the journey for its investors, making flipping properties a seamless addition to your investment strategy.

How Flipping Properties With Stake Work

Property Identification and Selection

• Timeline: This phase typically lasts 1-2 months.

• Process: 

Our team conducts thorough market research to identify properties with the potential for significant value appreciation. 

We focus on high-demand areas that are poised for growth. Properties are selected based on criteria such as location, developer reputation, views, neighborhood amenities, future growth potential, and much more.

Acquisition and Budgeting

• Timeline: This stage is usually completed within 1 month.

• Process: 

After identifying a property, we negotiate the purchase and develop a detailed budget for the renovation. 

The budget includes estimates for all necessary repairs and upgrades.

 To ensure accuracy and feasibility, we work exclusively with qualified and reputable contractors who have a proven track record in the market.

• Budgeting: 

The budget and renovation plan are communicated to investors before proceeding.

• Update Frequency: 

Investors can read detailed information on the budget, renovation plan, and expected timelines at this stage as per the displayed opportunity.

List and Fund the Opportunity

• Timeline: Pre-funding: Stake lists the property on its platform, finalizing documentation and financial projections. 

The listing remains open for a set period, allowing multiple investors to invest fractionally until the property is fully funded.

• Process: 

During this stage, potential investors are presented with a comprehensive investment package that includes all relevant financial data, risk assessments, and property details. 

The platform also features a Property Display Page (PDP) with investment strategy presentations, financial breakdowns, and timelines. 

Once listed, Stake raises capital to cover the acquisition, renovation, and transaction costs.

• Key Details Shared:

• Investment strategy, hold period, and leasing options (if applicable)
• Scope of work, budget, and projected timeline
• Return on investment (ROI) and risk disclosures
• Contingency plans in case of unforeseen market conditions

Renovation and Value Enhancement

• Timeline: 

Following the full funding of the opportunity, the creation of the SPV, and the property's transfer via the Dubai Land Department (DLD), the renovation period starts.  

This period typically spans between 6-12 months, depending on the scope of the renovation work.

• Process: 

The renovation phase is where the property’s value is significantly enhanced. 

This can include everything from modernizing interiors to improving the layout. 

Stake works closely with contractors and project managers to ensure that the renovation is completed on time and within budget.

• Contractor Selection: 

We engage only the best contractors who are known for their quality work and reliability. 

Regular site visits and quality checks are conducted to ensure the project stays on track.

• Update Frequency:

Investors receive regular updates, including photos, budget tracking, and progress reports according to milestones, so they’re always informed about how the project is moving forward.

Resale and Return Realization

• Timeline: The resale process typically takes 2-4 months.

• Process: 

Once renovations are complete, the property is listed for sale. Stake’s team closely monitors market conditions to identify the optimal time to sell, ensuring maximum returns. 

The goal is to sell the property quickly but at a price that maximizes investor profits.

• Holding Period: 

The total holding period, from acquisition to sale, typically ranges between 12-24 months, depending on market conditions and the complexity of the renovation.

• Exit Strategy: 

The property’s exit strategy will depend on the offers received post-renovation. If a suitable offer is made and gains are realized, the property will enter an automatic sale process, and investors will receive their returns once the sale is finalized.

 However, if the expected gains aren’t achieved, we will continue seeking better offers. Once an offer is found, investors will have the opportunity to vote. If the majority votes 'YES,' the property will be sold, and returns will be distributed upon completion of the sale.

Flipping Properties With Stake: Smart Investment Move

While there are many ways to invest in real estate, flips stand out for offering the potential for attractive returns. Also, flipping properties tend to carry a higher risk than traditional real estate investments, but with that comes the potential for greater rewards.