Fix n' Flips is a unique investment strategy on Stake where investors have the opportunity to gain capital appreciation by investing in market-undervalued properties located in prime areas in Dubai. Here’s how the process works:
1. Property Acquisition
We acquire vacant, underdeveloped, or run-down residential properties in prime locations in Dubai. These properties are specifically selected for their potential to realize significant capital gains after renovation.
2. Renovation and Upgrades
Once the property is acquired, it undergoes a thorough renovation and upgrade process to enhance its value. A dedicated and experienced project manager is assigned to oversee the renovations, ensuring that all works are completed efficiently, on time, and within budget.
The renovation budget is included in the initial investment price, so there are no unexpected renovation costs passed on to investors.
3. Sale and Profit Realization
Once renovations are complete, the property is immediately listed for sale. The goal is to sell the property at a profit within a shorter holding period, typically 12−24 months. During this period, investors do not receive any income as the property is non-income-generating.
If an offer that meets the projected gain is received, the property will be sold automatically. If an offer is below the projected gain, investors will be asked to vote on whether to accept the offer or hold the property for a better price.
Should the holding period expire and no sufficient offer is made, an investor vote will be issued to determine whether to lease the property to generate income or continue holding it for a sale.
4. Exit Restrictions
During the Flip period, investors cannot sell their shares on the exit window. This is because the focus is on maximizing the property’s value and securing a profitable sale for all investors.
Important Considerations
• Investment Horizon: The expected hold period for Flip investments is 12−24 months, but it could be shorter if a suitable buyer is found earlier or extended if market conditions require a longer holding period.
• Market Risks: While renovations are designed to enhance the property’s value, market conditions can fluctuate, and there is no guarantee that the desired selling price will be achieved.
• Alternative Strategy: If the property cannot be sold at the desired price by the end of the hold period, there may be an option to lease it as a holiday home to preserve value.
Additional information can be found in the Key Facts Document for each listing.
Why Choose Flips?
Flips are ideal for investors looking for shorter-term, capital-focused returns. While they come with inherent risks, they offer the potential for strong gains if market conditions and the renovation process align as planned.