Discover Why Flipping Properties With Stake Is A Game-Changer For Investors
Looking to diversify your portfolio or explore real estate without a long-term commitment?
Stake’s offerings are expanding, and we’ve got something for everyone.
Introducing our 4th investment strategy at Stake: Fix-and-Flip – one of many ways to invest in the real estate market and a unique segment within the residential market.
Thanks to user feedback, we’re launching shorter-term investment opportunities in real estate. For first-time investors eager to dive into the market but hesitant about long-term commitments, these short-term opportunities are just what you’ve been waiting for.
As for our existing investors, the new flip strategy offers an effortless way to diversify and enhance your portfolio.
What’s a Fix-and-Flip?
Fix-and-flip, or property flipping, involves purchasing a residential property, upgrading it, and selling it for profit, usually within a 12 to 24-month 1window
Think of it as a short-term real estate play with the potential for higher, faster returns.
Why You Should Consider Flipping Properties: A Smart Move
- Faster Returns: Shorter holding periods mean quicker exits and faster returns.
- Diversification: Spread your investment across different property types and locations, reducing risk while maximizing exposure.
- Higher ROI Potential: Strategic renovations boost property value, allowing you to potentially sell at a higher price and thus deliver strong returns.
Why Invest in Real Estate Flips with Stake?
Traditionally, flipping properties requires hands-on work between managing contractors, securing loans, and dealing with sales.
But with Stake, you get the benefits of flipping without the headaches. We handle it all, from planning upgrades and coordinating contractors to arranging final touches, like furnishings, and selling at the optimal moment.
And here's the kicker: typically, flipping homes demands high capital. However, with Stake, you can start with a minimum investment (as low as AED 500), making this high-reward strategy accessible to anyone.
How Flipping Properties With Stake Work
- Property Acquisition: Stake identifies properties in prime locations with strong potential for value appreciation after renovation. Once listed, these properties are funded by investors through the Stake platform.
- Property Ownership: After funding, the property is registered under a Special Purpose Vehicle (SPV), and each investor receives a share certificate to validate their ownership of the property.
- Renovation & Upgrades: Stake works closely with trusted and experienced contractors and project managers to ensure that the renovation is completed on time and within budget.
- Sale of Property: Once the renovation is complete, the property is valued and listed for sale at a higher price. Stake handles the entire selling process to ensure maximum profit.
- Investor Returns: After the property is sold, investors receive their capital and profits. The typical investment duration is between 12-24 months, offering faster returns compared to traditional buy-to-rent strategies.
Think this sums it up? Not quite! Dive into our step-by-step guide on flipping properties with Stake
Key Consideration:
A few key things to keep in mind…
- Since properties are under renovation, real estate flips with Stake don’t generate monthly rental income during the holding period.
- The focus is entirely on capital appreciation through the resale of the property. unlike other investment strategies, there are no periodic exits—your only exit opportunity comes when the property is sold post-renovation. This provides a clear, defined exit strategy that aligns with the property’s sale.
Still need more information?
Watch our free webinar to learn more about how our first fix-and-flip property on Stake performed2!