business plan for house flipper

How to Write a House Flipping Business Plan

The most important part of starting a new rehab project is having a house flipping business plan.

Before making an offer on a property, you need to define what your goals are for the project and how you’re planning to reach them. House flipping needs to be approached from an objective and quantifiable perspective, not an emotional one. As such, a house flipping project plan is essential to create a clear path to success.

To make the process as easy as possible, we have created a free house flipping business plan that you can download.

We also encourage you to read the rest of this article to help you understand each part of the house flipping business plan.

Click Here Get Your Free House Flipping Business Plan Template

Benefits of writing a house flipping business plan, writing a house flipping project plan is important because:.

• It will turn your vague ideas into concrete thoughts.
• It will help you to resolve lingering issues that you keep pushing off.
• It will help you to fully understand what you are getting into and how to get out of it.
• It will force you to consider the time, money and emotional commitment needed.
• It will force you to address your tolerance for risk.
• It will make you think about your own strengths and weaknesses and identify areas where you may need assistance.
• It will show people who are working with you (lenders, lawyers, contractors, etc.) that you are serious about the project.
• It will improve your chances of getting approved for a loan.
• It will help you plan and organize your house flipping business beyond single house flips
• It will let you know if/when you are going off-track

House Flipping Business Plan Outline

Now that you know why you should create a house flipping business plan, let’s jump into what a business plan actually looks like.

Our free house flipping business plan template includes the following topics:

Executive Summary

Mission statement.

• Market Analysis
• Strategy, Timing, and Financial Projections
• Team Description

Exit Strategies and Backup Plans

What are you doing.

The executive summary is the elevator pitch version of your business plan. It should briefly cover all of the topics covered in the business plan, starting with your mission statement and a brief overview of the project goals.

If someone only has time to read one page of your house flipping business plan, this will be it. They should gain a basic understanding of the whole project, your ideas, and what you bring to the table. It’s often easiest to write this piece last after all of your planning from the other sections are established.

Why are you embarking on this business venture?

The mission statement is a one to three sentence synopsis of your project objectives and the underlying philosophies behind them. This statement says a lot about your central ideals and business culture, and it is very important when laying the foundations for your project.

When writing your mission statement, cut the jargon! Make it clear, concise and useful.

Comparative Market Analysis

What is the economic environment surrounding your project.

Read more about how to prepare your own CMA in our Real Estate Strategy section.

Understanding the neighborhood where you are buying is essential to your success. Only when you have done your own due diligence can you be sure that you are getting a good deal. In the end, your thoughtful planning should be rewarded with moving forward on a successful project.

Sites such as Realtor , Zillow , and Trulia are all free sites that can give you information on the property to be purchased and neighborhood value. These sites can show you the selling prices of nearby homes and the characteristics of the home (bedrooms, bathrooms, square footage, lot size, etc.), allowing comparisons to be made between properties. These sites will also show you what is for sale in the neighborhood, so you will have a sense of the competition in the local market. Another great strategy is attending as many open houses in the neighborhood as possible to get a real sense of size, finishes, configurations, and more.

Below is a list of ways to better understand the market you want to buy in:

• Work with a realtor to help you identify properties
• Join real estate investment groups to get education
• Align with a wholesaler
• Find lists on the Internet
• Review foreclosure sale lists

All of these tools may help you identify your best opportunities, but you must do the work yourself, and not rely on what others tell you.

Once you do your due diligence, be sure you describe your research and rationale within your business plan. Write this section as an organized series of data points that explain the decisions that you are making with the choice of house and rehabbing decisions.

The goal of this section is to show a third party reader where the property and project fit in the current economic and regional real estate markets.

A house flipping business plan will force you to consider any difficulties that may arise, and prepare for them. This is just one of the ways that a house flipping project plan can help you plan, prepare, and get ahead of future roadblocks.

Project timeframe, how long will your project take.

Now that you’ve outlined your executive summary, mission and market analysis, you’ll want to develop a timeframe for your rehab project.

Keep in mind that rehabbing and flipping always takes longer and costs more than you think it will. Make a timeline that is realistic, and then add additional time to it to cover inevitable delays that you can’t initially account for.

Next, “cost out” each month on your timeline being as detailed as possible.

Consider the following questions when costing out your timeline:

• How much will you need to pay on the loan you have for the property?
• How much are insurance and taxes monthly?
• How much will you need to pay your contractor?
• How much are the monthly utility bills going to be?

To read more about developing a project timeline, read Chapter 4 of our Flipping Houses 101 Guide, “ Develop a Property Investment Plan and Timeline .”

Financial Projections

How much will it cost where will the time & money go.

After you determine how long your flipping project will take, you will need to show a budget and financial projection. The financial projection takes into account both time spent flipping the property and money spent across the whole project. This is one of the most important sections of the business plan.

Here are a few costs to include in your budget:

• Cost of the property
• Expected rehab costs
• Other expenses like marketing costs to sell the property
• Additional contingency expenses

Add all of these costs to get a total investment number.

Then, provide a realistic, supportable value for the sale of the property and deduct liquidation costs (such as realtor fees, transfer taxes, etc.) to project your expected profit on the property.

Use our House Flipping Calculator to help calculate a cost breakdown for your project, and then include these details in your business plan. This will not only help you identify potential budget challenges, but also show people you are working with that you’ve strategically thought through your budget!

Pro tip: Make sure that your numbers are realistic, and do not rely on everything going right.

After identifying all of the costs to buy a home, and how long it will take to actually complete the rehab, you should be able to fully estimate your cash flow through the duration of the project. This financial projection will help you understand how much cash is necessary to keep your project moving forward.

Financing Strategy

How do you plan to fund your project.

This section of the business plan should identify all of the sources of your start-up capital for your rehab project. To put it simply: Where will you get the money to flip a house?

There are numerous house flipping funding options, including:

• Conventional Mortgage
• Government Insured Loans
• Owner Financing
• Private Money

Keep in mind that your source of funding will have an impact on your timeline, costs and overall budget.

In the world of real estate investing, an all-cash offer is always preferred over an offer from someone with financing contingencies. Financing your project with your own cash is a good option if you don’t want to be in debt to an institution. However, most house flippers cannot afford to flip a house without financial help. It’s important to do your research about each type of funding listed above to compare the short and long term costs of each option.

To learn more about these six types of funding, check out Chapter 3 of our Flipping Houses 101 Guide, “ Getting Rehab Funding Right .”

If you want to get funding from a lender, watch the video below, where Rehab Financial’s President, Susan Naftulin, offers key tips to help you get approved by a lender.

Once you choose a source of funding, clearly explain which financial assistance you intend to use in your house flipping business plan, if you are going to get pre-approved, and how far in advance you plan to get pre-approved.

About Your Team

How is your organization structured are you building a team or taking on responsibilities yourself.

Now, you need to decide how you want your house flipping business to be organized.

Do you want to borrow in your own name as a sole proprietor? Or, do you want to form a partnership, corporation, limited liability company?

Read more about the best business structures for real estate investors in our Real Estate Strategy section.

You may need to seek the advice of an attorney or accountant to fully understand the implications of each organization type. Be careful about this choice, because your selection can affect your ability to borrow money, mitigate your risk, attract investors, etc.

This section of the business plan is also where you should talk about yourself. Include a brief bio, relevant experience and unique skills that will be advantageous to your company.

If you are working with a house flipping team , include who these people are, and why you chose to work with them. Make sure that the reader understands what you are doing and how the team you are working with will contribute to a successful rehab project.

How are you getting out of the investment? Do you have contingencies in place in case of unforeseen circumstances?

Finally, your house flipping business plan needs to address your exit strategy. Essentially, an exit strategy is what a house flipper plans to do with their property once the rehab is complete.

You also need to address contingencies in case the project doesn’t go as planned.

Below are a few examples of common scenarios where you’ll need to explain your contingency plans.

Scenario 1: Your property doesn’t sell

• What will you do if your property does not sell? Will you use it as a rental?
• If so, you should show that the rental will pay the carrying expenses of the building.

Scenario 2: You’re going to use your property as a rental

• Do you plan to refinance the property and hold it as a rental?
• If so, show your plans for refinancing it, but also show what you will do if you cannot obtain the needed credit.

Scenario 3: You’re going to sell the property

• Will you sell the property?
• If so, state how much you plan to sell it for. In addition, you will also need to know the rules related to your exit strategy.

Scenario 4: You’re going to sell the property to an FHA buyer

• Do you plan to sell to an FHA buyer?
• If so, make sure you understand the anti-flipping regulations to make sure you aren’t trying to sell too soon. Generally, you will need to hold the property for more than 90 days in an FHA situation.

Why a House Flipping Business Plan is Crucial

A thorough, well-written business plan can be an invaluable tool in helping you meet your house flipping goals. Time spent on planning at the beginning of the process will save you immeasurable time, money and worry during the process.

Get Your Free House Flipping Business Plan Template

Real Estate Investing & Rental Management | How To

How to Start a House-flipping Business in 7 Steps (+ Free Download)

Published October 18, 2023

Published Oct 18, 2023

REVIEWED BY: Gina Baker

WRITTEN BY: Melanie Patterson

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This article is part of a larger series on Investing in Real Estate .

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• 1 Prepare a Real Estate Investment Business Plan
• 2 Set Up Your House-flipping Business Operations
• 3 Find Financing Sources for Your House-flipping Business
• 4 Hire the Right House-flipping Professionals
• 5 Identify the Right Properties to Fix & Flip
• 6 Create a Marketing & Lead Generation Plan
• 7 Buy, Rehab, Market & Sell Properties
• 8 Mistakes to Avoid When Starting Your Own House-flipping Business
• 9 Frequently Asked Questions (FAQs)
• 10 Bottom Line

Before taking any house-flipping steps, it’s crucial to lay a strong foundation. This base involves creating a comprehensive business plan encompassing operational setup, team recruitment, property evaluation, securing funds, and the flipping process. To aid in this endeavor, we offer a free template and seven critical steps on how to start a house-flipping business to help you craft a solid strategy and ensure your venture’s success.

If you landed here looking for information on where to find fix-and-flip houses, see our article, How to Find Houses to Flip for Profit in 7 Ways .

1. Prepare a Real Estate Investment Business Plan

Before taking any steps to buying and flipping houses, you need a business plan with specific strategies that pertain to the fix-and-flip business model. A business plan provides a roadmap for how many projects you’ll need to take on, how much profit you need to generate, and funding details that will keep you on track to meet your goals. A clear plan also demonstrates professionalism to lenders and investors when seeking funding.

Use our real estate investment business plan and complete the following information to get started:

• Write mission and vision statements
• Conduct a SWOT analysis (strengths, weaknesses, opportunities, and threats)
• Set specific and measurable goals
• Write a company summary
• Conduct a market analysis

However, in addition to items from a general investment business plan, a strong house-flipping business plan includes detailed information about this unique business model. Make sure your plan also includes the following:

• Types of properties: Such as single-family homes, duplexes, or multifamily properties.
• Geographic area: The specific locations and neighborhoods where you want to invest.
• Who’ll do the work: Decide if a contractor does the work, you hire a team of specialists, or if you’re doing the work yourself.
• Project timeline: The projected timeline to complete the flip and a six-month margin for inevitable delays.
• Number of projects: How many projects you can realistically manage and complete during the course of one year.
• Financial plan and sources: Define your financing sources and include all costs such as materials, labor, carrying costs (taxes, insurance, utilities, mortgage principal and interest), marketing, and real estate agent commission.
• Expected return on investment (ROI): This figure should include actual calculations, not just a goal. It’s common for flippers to aim for an ROI of 20%. However, returns will vary depending on the location, property values, and the current real estate market conditions.

Use our free template below to write your house-flipping plan and start your business on the right foot:

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FREE House Flipping Business Plan Template

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2. set up your house-flipping business operations.

While many think flipping houses is solely about buying, renovating, and selling, it’s crucial to establish the proper business foundation for long-term success. This step involves choosing the correct legal entity, like an LLC, registering your business, and creating separate bank accounts. Consulting professionals, such as attorneys and accountants, ensure you set up your entity correctly. Proper business operations keep your enterprise organized, efficient, and legally compliant.

Choose the Right Business Entity

When launching your house-flipping business, selecting the appropriate legal structure and registering it with your state creates a separation between your personal and business assets—safeguarding you in case of business-related liabilities. For instance, if someone gets injured during a demolition, they can sue your company. Still, it creates a hedge from them suing you personally.

Common entity types for investing in real estate include DBA (doing business as), S Corp (subchapter or small business corporation), LLC (limited liability company), and sole proprietorship (the lowest form of legal protection). You must consult with your accountant and attorney as part of your learning how to start a house-flipping business to determine the best fit for your business since this also ties into your financial situation and varies by person.

Read our guide on How to Start a Real Estate Holding Company in 6 Steps for more details.

Register Your Business With the IRS & Obtain Permits

Apart from your legal business entity, you must register your business with the Internal Revenue Service (IRS) and get an employee identification number (EIN) . An EIN identifies it as a business entity. Make sure to also check with your state and local municipality for what other business licenses and permits you may need, such as building permits, change of use, or special exceptions to zoning ordinances.

Conveniently apply online (Source: U.S. Internal Revenue Service )

Open a Business Bank Account

With your EIN, you can open a business bank account . Keeping your personal and business money separate is essential to protecting your livelihood and staying legally compliant. Having this account up and running is crucial when starting a flipping business.

For example, you’ll be spending money on gas when looking for properties; all business expenses should come from the same account. You also need to pay your newly hired attorney and accountant. Managing your business account and costs will eliminate auditing from the IRS and complications when your accountant does your taxes.

Analytics in the Baselane dashboard (Source: Baselane )

With Baselane’s analytics and reporting capabilities, gain real-time insights into your property’s performance, such as cash flow, profit and loss (P&L), capital expenditures, carrying expenses, and transfers. Streamline the consolidation of your investment property’s financial data from both your business banking and external accounts, all within a single, user-friendly platform.

Visit Baselane

Pro tip: Once your business bank account is up and running, consider applying for a business credit card —a valuable tool for acquiring building materials and office supplies without any upfront costs. Some business credit cards offer perks like cash back, which saves on your upfront costs. Some provide a 30-day to 18-month interest-free period, allowing you to manage expenses more effectively.

3. Find Financing Sources for Your House-flipping Business

A common question in house flipping is how to begin with no money. While you’ll need some funds to buy properties, many flippers don’t use cash for the entire process. They typically secure financing through hard money lenders or specialized loans for house flippers.

The two most common ways to get into the flipping homes business are:

• Hard money loans : These loans offer faster approval and funding times than traditional mortgages. The borrower qualifications are more lenient but with shorter loan terms and higher interest rates.
• Rehab loans: These include home equity lines of credit (HELOCs), HomeStyle renovation mortgages, 203(k) rehab loans, or CHOICERenovation loans. They require a lower down payment but also have more extensive criteria and paperwork.

If you have a construction or real estate background, you can join investment groups and find investors willing to put up some cash. It’s easy to find local events and groups for investors by searching on Google or Meetup.com.

Real estate investor groups (Source: Meetup )

Remember that the costs to flip a house vary depending on the individual property, its condition, prices of repairs, and the real estate market. Learning how much money you need to flip a house and how much money you can make by flipping houses can be complex. Still, getting the right financing and maximizing your profits is necessary.

Creating a budget and calculating each project is an important part of your house-flipping checklist. Use the free house-flipping calculator to generate your potential profits when shopping and evaluating potential properties.

4. Hire the Right House-flipping Professionals

When starting as a house-flipper, remember the significance of your professional network for your business plan. Flipping houses isn’t a solo venture; you’ll collaborate with experts like lawyers, accountants, real estate agents, and contractors. These professionals provide valuable insights and guidance for successful house flips, making the difference between a lucrative investment and a costly mistake.

Some important house-flipping pros to hire include:

• Real estate attorney: Manages legal aspects, ensures compliance with local laws, and drafts contracts.
• Accountant: Helps with business structure, filing house-flipping taxes , expense tracking, and financial advice.
• Real estate agent: Offers industry insights, local connections, and accurate market data.
• General contractor (GC): Oversees rehabs, ensuring quality and reducing errors.
• Administrative assistant: Assists with tasks and project management as your business grows.
• Handyperson: Handles smaller jobs, saving time and costs.
• Landscaper: Enhances curb appeal for higher ROI.
• Architect (for large projects): Ensures structural integrity and avoids costly issues.

The most trusted way to find experts is through referrals. Suppose other real estate investors or agents in your network succeeded with a professional. In that case, it’s more likely that you’ll also have a smooth experience with them. However, you should still check them out and vet them with an interview or meeting to ensure you choose the right professionals. In the long run, spending time and effort to choose an expert saves you time, money, and stress.

Pro tip: Building and utilizing your network is crucial for success in house flipping. A strong network can connect you with the right professionals, making it easier to find deals and resources. Your network provides valuable insights, market knowledge, and support from experienced individuals who can guide you through the process and help avoid common pitfalls. Additionally, networking can lead to partnerships and opportunities for collaboration, enabling you to scale your house-flipping business effectively.

5. Identify the Right Properties to Fix & Flip

Before jumping into a purchase, begin by evaluating potential properties to flip. Run a comparative market analysis (CMA) on properties or have a real estate agent run one to determine the value and calculate the return on investment (ROI). Evaluate each property within its neighborhood, location, and real estate market context.

When learning how to find houses to flip , some essential factors to evaluate include:

• Location: Pick nearby properties for easy site visits.
• Neighborhood: Choose desirable neighborhoods for curb appeal.
• Amenities: Houses near parks, schools, and other establishments attract buyers.
• Structural issues: Avoid costly structural problems.
• Value-add repairs: Research profitable upgrades like kitchens and bathrooms.
• Property size: Focus on square footage over the floor plan.
• Outdoor space: Properties with outdoor areas tend to yield higher returns.

Did you know? The potential return on investment (ROI) in a house-flipping business can be significant. Investors purchase distressed properties at a lower cost, renovate them to increase their market value, and then sell them at a higher price, resulting in a profit. ROI percentages vary widely, but successful flips can yield returns ranging from 10% to 100% or even more of the initial investment , depending on location and other factors. However, house flipping comes with risks, such as unexpected renovation costs or market fluctuations, so thorough research and proper planning are crucial to maximize ROI and minimize potential losses.

6. Create a Marketing & Lead Generation Plan

Setting up a successful house-flipping business involves some marketing and real estate branding . While a complex marketing funnel isn’t necessary initially, a well-crafted marketing strategy ensures a steady influx of new projects for your house-flipping business.

Marketing Your Fix & Flip Business

Having foundational marketing elements is crucial for projecting professionalism, building your reputation as a reliable home flipper, and marketing your newly renovated properties, especially if you seek funding. Lenders see your professionalism and experience as favorable.

Consider starting your business with these marketing elements :

Logo: A quality logo distinguishes your brand and is useful across future marketing materials.

Business cards: Affordable and handy for networking; consider adding QR codes for website access.

Website: A simple, one-page site effectively communicates your identity, services, and contact information.

Gmail business email account. (Source: Google Workspace )

Business email: Use your website domain for a professional email address, boosting your image.

Business card templates (Source: Canva )

As you dive into house flipping, consider expanding your marketing with tools like social media and email campaigns. Canva, a versatile and user-friendly design platform, offers templates for various needs, from social media posts to postcards and letterheads. It’s a go-to tool for business owners, making it easy to create diverse marketing materials, both digital and print.

Visit Canva

Lead Generation Strategies for Your Business

Additionally, you will need to consistently generate potential renovation projects and motivated sellers. Many beginners use listing platforms like Zillow to find houses to flip, which offers versatile search filters to refine property searches based on your chosen criteria.

Homeowners opting to sell without agents often use FSBO.com ( For Sale By Owner ), Craigslist, or Facebook Marketplace. Foreclosed and bank-owned properties typically appear on websites like Foreclosure.com or the government’s HUD Homes site. These properties are appealing to investors for their potential to offer significant discounts and investment opportunities. Generate leads and learn how to find cheap houses to flip, start with the following resources:

7. Buy, Rehab, Market & Sell Properties

Once you have all the right business strategies and structures in place, the bulk of your work as a house flipper comes to buying, renovating, and selling properties. As soon as you close on your property, you’ll have monthly carrying costs that can add to your planned expenses. Therefore, the more efficiently you can complete the flip, the higher your profits.

The process of making money flipping houses goes like this:

• Close on the investment property: Buying an investment property is different than purchasing a primary home, so make sure you know how to determine a budget, evaluate properties, and choose the right lender. Depending on your financing, closing on the property can take 15 to 45 days.
• Make all repairs, renovations, and upgrades: Repairing a fix-and-flip property will take the most time. You or your general contractor should manage the timeline, remembering that delays increase your carrying costs.
• Market the property for sale: There are endless ways to generate excitement about your property and increase the sale price. For some ideas, read 21 Real Estate Marketing Ideas & Strategies . Although these strategies are aimed at agents, they are equally effective for home flippers.
• Sell the property: Working with a real estate agent is often the most efficient way for flippers to sell their properties since they manage communications with the buyer’s agent and lender and often schedule the necessary appointments. However, many flippers choose to get a real estate license to gain access to the MLS and save even more on fees.

Course platform (Source: Colibri Real Estate )

Experienced house flippers often handle their property transactions to reduce expenses. You can conveniently pursue a real estate license through online schools like Colibri Real Estate, which offers comprehensive courses, instructor support, e-books, live Q&A sessions, and exam prep tools with a pass guarantee. Colibri Real Estate, an accredited education provider, has assisted countless agents and brokers nationwide in obtaining their licenses, enhancing profit opportunities.

Visit Colibri Real Estate – Use Promo Code: FSB30 for 30% off

Mistakes to Avoid When Starting a House Flipping Business

Every beginner inevitably makes mistakes while building their business. For house flippers, there are some definite learning curves, and every new project presents unique challenges. However, the more mistakes you can avoid in the beginning, the more efficiently you’ll be able to build your flipping business and generate a strong ROI.

Some mistakes to avoid when flipping houses include:

• Overestimating your abilities: Avoid taking on major electrical work or plumbing tasks if you lack the necessary skills. It can lead to costly mistakes.
• Lacking a team: House flipping often requires collaboration with contractors, real estate agents, and other professionals. Trying to do it all alone can lead to delays and errors.
• Overspending on renovations: Going over budget can eat into your profits. Plan carefully and prioritize cost-effective improvements.
• Buying a flip far away: Distance can make managing the project effectively and promptly responding to issues challenging.
• Not understanding the numbers: Accurate financial calculations are crucial. Failing to grasp costs and potential profits can result in financial setbacks.
• Being unprepared for the unexpected: House flips often encounter unexpected issues, such as hidden structural problems. Have a contingency plan and budget for surprises.

Frequently Asked Questions (FAQs)

What is the 70% rule in house flipping.

Real estate investors use the 70% rule in house flipping to determine the maximum purchase price for a property to ensure a profitable flip. According to this rule, investors should not pay more than 70% of the property’s after-repair value (ARV) minus the estimated repair and carrying costs.

How much money do you need to start flipping houses?

The initial capital needed for house flipping varies due to location, property type, and your specific flipping houses business plan. Generally, having access to $20,000 to $50,000 is a good starting point. This budget should encompass property purchase, renovation, carrying costs (like taxes and utilities), and contingencies for surprises. Access to financing options, such as loans or partnerships, can also affect your capital requirements.

How many houses a year can you flip?

The number of houses you can reasonably flip in a year depends on various factors, including your experience, team, resources, and local market conditions. On average, experienced house flippers may aim for two to five flips yearly. Beginners may start with one to two flips annually. Scaling beyond these numbers often requires a well-established operation, access to financing, and efficient project management.

Bottom Line

Learning how to start a house-flipping business begins with a strong business plan. It also starts by setting up the right legal and financial systems to set yourself up for success as the business grows. Successful home flippers also create a network of professionals to get their flips done properly and implement strategic marketing and lead generation systems. After following this step-by-step guide, your house-flipping business will be ready to generate strong profits.

About the Author

Find Melanie On LinkedIn

Melanie Patterson

Melanie is a contributing real estate expert at Fit Small Business and the editor of our sister site, The Close, specializing in real estate business development for new and seasoned agents, property managers, and real estate investors. She has over 30 years combined experience in real estate sales, marketing, property management, and investing and is a licensed real estate agent in NH & MA.

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If you've tuned into HGTV lately, it won't come as a shock to learn that more people than ever are interested in how to start a house-flipping business. For enterprising investors who aren’t afraid of hard work, flipping a house is an exciting opportunity for short-term investment and for starting a new business. But there’s a lot of research to be done, plus financing and resources you need before you can start a house-flipping business yourself.

So we’re all on the same page here, house flipping is the process of purchasing distressed, foreclosed, or otherwise desirably priced property with the intent to fix it up and sell at a higher price within a short period of time.

»MORE: Read how to fix up that first property you're flipping

If you’re one of those enterprising investors who want in, you’ll need to know more about how to start a house-flipping business. Follow this guide to help you develop a business strategy, plus determine and execute the optimal financing plan.

Starting a house-flipping business in 8 steps

If you’re determined to invest in short-term real estate and flip a house, here’s where to start:

Step 1: Write a business plan

Before taking any action, financial or otherwise, it’s crucial that writing a business plan is the first step in starting your own house-flipping business. A business plan will be key to keeping your business on track, helping you estimate profits, and getting investors.

Your business plan should be fairly in-depth and there is a lot of information you should be sure to include in it. You can either write it on your own or use a business plan template to help you. No matter what you choose, you should be sure to include the key parts of a business plan.

You'll want to start out with an executive summary detailing the purpose of your business, the vision you have for it, some high-level financial projections and identify who will be involved in the business. The rest of the business plan should include a section on the competition and the demand for your business. After all, you need to be sure that there's enough demand to sustain your house-flipping business—a lack of demand for a small business is the reason 42% of small businesses don't make it. That's a group you don't want to be a part of simply because you didn't do your research before starting your business.

You should also use your business plan to lay out what exactly your business will do and how much it will cost, along with how much you expect to make. With house flipping, you'll want to detail how much money you have, how much you expect to need to buy properties and flip them, and then how much you expect to make back.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Grow your network

Flipping houses is tough work, and you'll need a plethora or resources to help you finish each job. Identify the resources already available to you to take full advantage of your strengths. Experience in the real estate business, access to a network of excellent craftspeople, or just a promising property are all assets.

Talk to friends or relatives involved in real estate investment, particularly in the area where you plan to invest in property. Anecdotal evidence and word-of-mouth advice can help you find reputable wholesalers, contractors, and realtors to help you find and complete jobs within budget.

Reach out to your existing professional or personal network to find contacts within the industry, and seek out experts for mentoring and advice. Get active in local real estate investment groups or find your chapter of REIClub to connect with industry professionals.

Step 3: Choose a business entity

In order to operate your house-flipping business legally, you'll need to choose a business entity and register your business with the state in which you plan to operate. While there are many business entity types to choose from, you will want to opt for one with limited liability protection, such as an LLC or corporation.

Liability protection is especially important for a house-flipping business because there are many opportunities for things to go wrong. If someone sues your company over an issue with a property you flipped, you'll want to make sure your personal assets are protected. If you're unsure which entity is right for your business, consult a business attorney to help you weigh your options.

Step 4: Obtain an EIN, insurance, permits, and licenses

Registering your business is the first step to legally establish your operation, but there are a few more steps to take to make sure you're officially allowed to start work as a house flipper. First, you should register for an employer identification number, also known as an EIN. Think of this as a socials security number for your business, which you will use for tax purposes, as well as when applying for business loans or a business bank account or credit card. Applying for an EIN can be done online through the IRS website.

Next, you'll want to look into your business insurance options. If you hire employees, you'll need workers compensation, unemployment, and disability insurance. Beyond those policies, you should also look into general liability and commercial property insurance to protect yourself, your business, and your properties.

Finally, you'll need the proper business licenses and permits to operate your business. The licenses and permits you need will depend on your state and the scope of work you're doing; however, you can expect to need several permits when working in the construction business. Check with your local chamber as commerce and consult with your business attorney to make sure you have all the paperwork you need before you start any work.

Step 5: Find suppliers and contractors

Once your business is legally established, it's time to find contractors and suppliers to help you get your business going. Even if you plan to contribute sweat equity to your house-flipping business, you’ll probably need additional contractors to complete a project successfully. Look for contractors with a portfolio of demonstrable work, references, and positive feedback from previous projects.

A trusted general contractor can also look over any remodeling plans and budget projections you make to check for accuracy with regard to cost and timeliness. Finding suppliers who are reliable and can work within your budget is also incredibly important. Tap into your network and do your research to find some reputable options.

Step 6: Assemble a team

Whether you plan on bringing in a partner, hiring outside contractors, or renovating each property yourself, you’ll need to recruit a team of qualified people to complete a successful flip. In particular, consider sourcing for these roles, which could really help you keep things organized and get the most out of your investment:

Business partners or investors

A good potential partner might be an active private investor in your personal network or a real estate investor looking for a project manager. A good business partner brings an asset or skill to the relationship—be it capital resources, skilled labor, industry expertise, or simply a great work ethic and determination to make an honest profit.

According to Jamell Givens, a partner and real estate investor at Leave the Key Homebuyers, the advantage of having a business partner is the ability to evaluate a deal in different ways. Whereas one partner might think only of a home's profit potential, the other might bring local knowledge or connections with contractors.

Realtors or property owners

A background in real estate and property ownership is a huge plus in the house-flipping business. An experienced partner can help you search efficiently for prospective properties, identify the most valuable improvements for a given area, and navigate contracts and sales once the rehabilitation is complete.

Or, if you know a homeowner looking to sell and willing to loan you the money for necessary repairs and renovations, owner or seller financing may work for you.

Legal counsel

Seeking legal advice about any financial agreement or contractual obligation is a good idea, especially when you’re considering making major investments and buying property.

Step 7: Obtain financing

You’ve found a partner, done your research, and maybe even identified the first property you want to flip. In other words, you’re ready to finance your house-flipping business’s first fix-and-flip.

If this is the beginning of your house-flipping career, you’re probably not going to be eligible for a traditional bank loan. Typically, banks only approve businesses with many years of profitability under their belts. And in house-flipping, time is money. That makes the best fix-and-flip loans short-term financing option—usually around 12 months. Repayment terms on bank loans, on the other hand, can run between five and seven years.

That said, you do have a wide variety of fix-and-flip loans available to you. As a brand-new business, you also have a good option to tap into your personal funds or investments. It’s a little risky to throw your own skin in the game—in other words, your nest egg—but it’s likely that your business doesn’t have the revenue and financial stability that most lenders want to see before extending you a business loan .

As always, it’s wise to explore all of your possible options before settling on a loan that best suits your needs. Start your search with these options for new house-flipping businesses:

Friends and family loan

Many rookie real estate investors fund their first projects with personal loans from partners, friends, or family members. If the loan is comfortably within the lender’s means, this alternative to a bank or private loan can alleviate some of the pressure of a traditional loan, as well as ensure a degree of accountability.

If a friend or family member is an investor or partner in your house-flipping project, it’s a good idea to establish terms of the arrangement in writing as soon as you reach an agreement.

Tap into your 401(k)

For first-time flippers with a retirement plan who are not planning to retire in the near future, one financing possibility is taking out a loan from your 401(k). This option incurs the risk of losing your nest egg, which is always a scary prospect. But financing a business with a 401(k) might be the only viable option for entrepreneurs just starting out—and if you’re smart with starting your house-flipping business, you can hopefully make back the cash and then some.

There are two main options for 401(k) loans: The classic 401(k) loan, in which the IRS allows you to borrow up to half the vested balance, or $50,000, whichever is amount is lower; or a ROBS . You’ll determine which type of financing makes the most sense for you based on the size of your investment and your willingness to dip into your retirement savings.

Combination financing

Many experienced short-term real estate investors find success using multiple financing sources to purchase and renovate a property. Depending on your own capital, a partner or investor, and external lenders, it’s likely that you’ll end up using a combined solution to finance your house flipping business.

Step 8: Source your deal

The success of flipping a home depends in large part on supply and demand in the local real estate market, as well as the cost of labor and value appreciation of the renovations.

Identifying your target property market might help you decide if a real estate wholesaler, auction, or a traditional broker is the right choice for your project. If you’re interested in distressed or foreclosed properties, a wholesale broker or auction will have higher volumes of properties available. A traditional broker might be right for you if the real estate market is new to you or if you need help finding a specific type of property or building.

Determine the scope of renovations or rehabilitation you are equipped to complete on a property, keeping in mind the duration and amount of your fix-and-flip loan.

Start Your Dream Business

Follow these best practices for a successful house-flipping business

Once you develop a business strategy, assemble a team, identify a property, and secure financing, it’s time to start implementing your renovation plans, thinking about marketing and selling the property , and generally getting your house-flipping business underway. Make sure you:

Commit to your business plan. Planning, logistics, and administrative organization will make or break your project—although you have the potential to make a big, quick profit, starting a house-flipping business is no walk in the park. You’ll need to scout properties, calculate renovation costs, source a trustworthy crew, possibly apply for a small business loan… not to mention the curveballs that may arise with every step.

Approaching the process with a detailed business plan in hand will help keep you on track. And the more confident you are in your business strategy and execution plan, the more adaptable you’ll be to those unpredictable circumstances that’ll inevitably arise.

Grow your network. Use your first fix-and-flip project to foster relationships with industry professionals—from investors to realtors to carpenters—whose collaboration and skills you will need for your next house flip. Experienced contractors and agents can connect you with other vendors, give you leads on properties and service-providers, as well as provide advice on specific projects. Trusted contacts in the industry can also help you cover your blind spots, and make sure estimates for properties and repairs are accurate, saving you time and money.

Make estimates—then double them . Unless you’re already in possession of a property, sufficient cash, and experience with home repairs, the process of flipping a home will require timelines and cost estimates at every turn.

Err on the side of caution when making any projections about the cost and duration of the renovation. That’s especially important if you’re financing your startup with outside investors who need to see that you’ve done your due diligence before putting their own capital on the line.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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11 Components Of A Successful House Flipping Business Plan

Why Start Flipping Houses?

What is a house flipping business plan, why you need a business plan for flipping houses, 11 important steps in your fix-and-flip business plan, assemble a team & execute, 5 house flipping mistakes to avoid.

There is absolutely no reason for a real estate investor to treat a flipping career like anything less than a legitimate business in today’s competitive marketplace. Whether flipping houses as a full-time job or supplementing a nine-to-five, every investor could benefit immensely from implementing sound business practices into their existing strategy. More specifically, however, there’s no reason to think a well-devised house flipping business plan can’t maximize even a new investor’s potential. If for nothing else, treating flips like a business will tip the scales in an investor’s favor while simultaneously eliminating inefficiency and inconsistency–two of the greatest threats to today’s entrepreneurs.

When asked why they start flipping houses, most investors will instantly lean into the fact that they get to work for themselves, that, and the money. In fact, it’s not a hard argument to make. Becoming a real estate entrepreneur can simultaneously be lucrative and fun. Few career paths award hard-working individuals with more freedom and the ability to generate wealth on the same level as a career in real estate.

Even when the pandemic all but brought the U.S. economy to a standstill, a proper house flipping business plan proved lucrative. As recently as last year, the average home flip “generated a gross profit of $66,300 nationwide (the difference between the median sales price and the median amount originally paid by investors). That was up 6.6 percent from $62,188 in 2019 to the highest point since at least 2005,” according to Attom Data Solutions’ year-end 2020 U.S. Home Flipping Report .

However, it is worth noting that the answer to the question will resonate on multiple levels for today’s best investors. You see, on the surface, it’s easy to understand why someone would want to start flipping houses: it’s a good way to work for yourself and make money. However, some see flipping houses as a bridge to get closer to what they really want. With the ability to realize financial freedom and work at their own pace, investors use real estate as a vehicle to bring them true happiness. Whether spending more uninterrupted time with family and friends or traveling the world, real estate can serve as the means to an end investors envision.

A house flipping business plan is nothing short of the most important aspect of a real estate investor’s career. To that end, I remain convinced few things–if any–come with a better return on investment (ROI) than a well-crafted business plan for house flipping. I could easily argue a great business plan is invaluable, which begs the question: What is a house flipping business plan? Better yet, why does anyone looking to flip properties need to implement one?

To be clear, a business plan for flipping houses is exactly what it sounds like: a plan for flipping houses. However, it is worth noting that a truly great house flipping business plan isn’t meant for flipping a single property but rather multiple properties. You see, a truly great flipping strategy isn’t meant to be used on a single property; it’s meant to guide investors through the house flipping process over the course of their entire careers. Therefore, any investor intent on running a successful rehab company needs to have a real estate flipping business plan of their own.

Today’s most prolific house flipping business plans act as a blueprint for success; better yet, they award savvy investors the chance to make success habitual.

It is not enough to simply start flipping houses on a whim; doing so exercises a reckless abandonment nobody will appreciate. Instead, investors need to devise a plan of attack, as to increase their odds of realizing success and giving themselves a blueprint to follow in times of need. It is worth noting, however, that a house flipping business plan does more than simply tell investors where to go. A truly great flipping houses business plan will also:

Help investors maintain an organizational level that is conducive to a successful business.

Show others how serious investors are, perhaps awarding them with a more trusted network.

Clarify whether or not a respective revenue model makes sense.

Share an investor’s vision with others easier than just about anything else.

Help lenders decide if they want to work with a specific borrower.

Help investors turn their thoughts into more actionable processes.

Bring to light an individual’s strengths and weaknesses.

Force some investors to address their own risk tolerance.

No two businesses are exactly alike, and it’s unfair to expect even similar companies to share the exact same business plan. Perhaps even more importantly, there isn’t a single, universal business plan for flipping houses that will work for every investor in a given market. What works for one investor may or may not work for another, and vice versa. Case in point: there are several ways to draft a promising business plan. That said, no house flipping business plan template is complete without the following sections:

Executive Summary (Mission Statement)

Team dynamic, swot analysis, opportunity, market analysis, financing and projections, growth strategy, lead generation and marketing, goals and objectives, competition, exit strategies.

Aptly named, the executive summary section of a house flipping business plan should sum up an investor’s intentions in a clear, concise mission statement. Perhaps even more specifically, the executive summary will serve as the foundation for an entire business; it’s the first impression, and it’s what customers will use to determine whether or not they want to work with a respective company. Every executive summary should, therefore, clearly define the company’s purpose and long-term goals.

No rehab strategy is complete without clearly identifying the team’s dynamic . Identify the most important positions that will be held and who will hold them. There is no need to acknowledge every person in the rank and file, but it’s important to include the most important positions. In addition to each person’s title and name included in the team dynamic section, be sure to include a description of the title and why it’s needed. This section aims to identify each person’s role moving forward and prevent any disputes over whose responsibility a specific task will be. More importantly, the team dynamic section will see that everyone has a clear idea of what they need to do.

A popular acronym is used to acknowledge a company’s strengths, weaknesses, opportunities, and threats. A SWOT analysis will help up-and-coming real estate investors identify the very components working for and against their current business plan. If for nothing else, success favors those that are most prepared. Few things will prepare a real estate investor for what’s to come better than identifying their own strengths and weaknesses. Perhaps even more importantly, an in-depth, unbiased SWOT analysis will help investors carve out their own niche moving forward.

It is in the best interest of today’s investors to identify the problems that plague their industry and the opportunities that are inevitably created as a result. It’s a sad reality, but a truth, nonetheless: distressed homeowners are in a difficult situation. However, their problems create an opportunity for investors to lend a helping hand. That said, investors need to identify their own opportunities and how they can take advantage of them. This part of the rehab strategy should identify the target audience’s needs and offer a solution.

The market analysis section of a flipping houses business plan should identify the main indicators of the area investors intend to work in. As its name suggests, a market analysis should offer an in-depth look at what’s taking place in the same neighborhoods investors intend to work in. Pay special considerations to the past, present, and future. Among other things, be sure to reference changes in the market share, nearby competitors, historical shifts in the market, costs, pricing, and anything else deemed important to an investor’s success. The more comprehensive, the better a market analysis will serve an investor.

Not surprisingly, the best strategies will detail a company’s financial outlook. Financial literacy about one’s own company can’t be underestimated, and one should prioritize almost everything else involved in a house flipping business plan template. Be sure to explain the model you intend to use and any pricing assumptions gleaned from the market analysis. Additionally, investors will also want to include where exactly they intend to get their funding from and how they will secure money for future deals. To be safe, consider forecasting for at least three years; that way, investors are less likely to receive rude or unwelcome awakenings. The financing section should also touch on how the investors intend to finance future deals. Include which sources will be used, and their respective fees and timelines. The more methods of financing a deal investors have at their disposal, the better. This section should include, but isn’t limited to:

Private Money Lenders

Hard Money Lenders

Institutional Lenders

Owner Financing Strategies

Crowdsourcing

Creating a business plan for house flipping will require investors to think proactively. More importantly, house flipping business plans–even those accommodating new investors–should be written with the intentions of future growth. Scaling a business can prove difficult for those companies that aren’t ready for it. Therefore, it is best to include a section in your initial rehab strategy that outlines any growth strategies that may be relevant. The best time to entertain a growth trajectory is from the onset of one’s career, not in the heat of the moment. Those prepared for growth from the beginning will find the transition to be a lot easier.

Every great house flipping business plan will include a section on how to generate leads through a proper marketing strategy. If for nothing else, this section will serve as the foundation for a great deal of the company to function off of. It is with a great marketing strategy that investors will be able to operate and maintain a funnel of hot leads. It is worth noting, however, that a truly great marketing system is the sum of its parts. There isn’t a single marketing strategy investors should be using, but rather several. For a better idea of what today’s investors are using, here’s a list of what has worked for us:

Direct Mail Marketing

Bandit Signs

Door Hangers

Curated Lists Purchased Online

Real Estate Investment Clubs

No real estate investor can hope to realize success if they can’t clearly define what success for their own company would look like. In other words, it’s impossible to succeed if there are no clear goals and objectives to aim for. Likewise, you can’t possibly know if you realized success if you never sought to define what success actually means. Success is, after all, a relative term. What one investor may deem as a successful business, another could completely disagree with. Therefore, today’s new investors need to develop their own definition of success; that way, they can have something to strive for and even reference when times get tough.

For as important as it is to know your own business, it’s equally important to keep tabs on the competition’s business. There is a great deal of information that can be gleaned from the way your competition runs its business. Therefore, I recommend dedicating an entire section of your house flipping business plan to the people you intend to compete against. What are they currently doing that is working? What hasn’t worked out well for them? Do they currently have a competitive advantage? In understanding the competition, investors will have a better idea of how to proceed and what not to do. Be sure to learn from their successful efforts, but don’t ignore their shortcomings; they are just as valuable.

No plan is even remotely close to complete without a section that outlines potential exit strategies. Therefore, it is at this point in the planning process that investors need to weigh their available options. First, evaluate the property based on its merits and determine how it may meet your specific investing goals. If, for nothing else, there’s an ideal exit strategy for each property, but it must line up with your own goals. In other words, you need to know whether you will flip, rehab, wholesale, or rent the asset before you even buy it. Not only that, but you’ll need a backup plan in place in the event things don’t go according to plan.

It is entirely possible to pull off the perfect house flipping business plan by yourself. After all, one of the best reasons for becoming an investor is to become your own boss. That said, this industry can get very involved very fast. In addition, many skills are required to complete a single deal, all of which can be performed by a different professional. As a result, it may be in every investor’s best interest to assemble a well-qualified team. With a competent team at your side, you’ll be free to do more important activities. Not only that, but if you hire the right team, you can remain confident the job is getting done well.

A good real estate team is invaluable and can increase productivity exponentially. To see to it your team can compete on the highest level, you may want to consider enlisting the help of the following individuals:

Real Estate Agent: A truly great real estate agent is worth their weight in gold. Their knowledge of a given area and their contacts — alone — can save investors an incredible amount of time and money. As a result, a good real estate agent should be one of the first additions to your team.

Attorney: As I already alluded to, the real estate industry can get complicated really fast. A good real estate attorney can make sure you have every corner covered. Their help will mitigate risk around every corner.

Contractor: Good contractors may be found in any city, but the key isn’t to hire just any contractor; you need to hire the right one. A trustworthy contractor is invaluable to today’s investors. Their skills will show in the final product and keep investors on schedule.

CPA: Not unlike the industry itself, the numbers behind everything can get confusing. Therefore, it is important to hire someone familiar with real estate deals and their respective “numbers.” That way, there is much less of a risk of running the numbers incorrectly.

Inspector/Appraiser: Aligning your services with an appraiser or inspector can give investors an advantage. Not only will they serve as a valuable contact when it comes to getting a home inspected, but they can also expedite the process. Remember, time isn’t just money to real estate investors; it’s everything.

Successfully flipping homes requires investors to hone specific skills to increase their odds of making a profit. However, many investors don’t realize that it’s just as important to avoid mistakes as it is to be successful. Sometimes knowing what not to do is just as valuable as knowing what to do. With that in mind, here are some of the most serious house flipping mistakes to avoid:

Inadequate Funds: Any failure to calculate the amount of necessary funds could be disastrous. Running out of capital in the middle of a project can potentially lead to deal-ruining delays and perhaps the deal from being completed altogether. Consequently, those without adequate funds may find the urge to cut corners and produce an inadequate product, which can ultimately cut into profit margins. Instead of beginning a deal with inadequate funds, it’s better to give yourself extra cash to serve as a safety net.

Poor Time Management: Time isn’t simply money; it’s everything to an investor. Therefore, today’s investors really need to learn time management. The faster they can get in and out of a deal, the better. Holding costs will be down, and they’ll be able to move onto another deal even sooner if they can efficiently manage their time. Failure to do so can cost investors a lot of money and perhaps even ruin a deal. Instead of heading into a deal without a plan, investors need to have a schedule. Not only that, but they need to do everything they can to stick to it to avoid unnecessary setbacks.

Inexperience: As perhaps the biggest mistake of them all, far too many investors tend to get in over their heads. A lack of experience, for example, can lead o poor decision-making and folding under pressure. Therefore, investors should work within their comfort zone. Instead of attempting an exit strategy you aren’t familiar with, stick with what you know. When the time comes to branch out, educate yourself before moving forward.

Lack Of Education: A lack of education can be disastrous at any stage of an investment. Nothing is more sure to ruin a deal than ignorance. Therefore, investors must know everything about a deal before going into it. Proactively learn about every aspect of a deal. Read, listen to podcasts, take classes and talk to anyone you may learn from. Education is invaluable to an investor and can alter the course of their career in great ways.

Impatience: Patience is a virtue in the investing world. While time is money, it’s also important to maintain a level head. Sometimes patience can prevent investors from making a huge mistake. If for nothing else, acting irrationally can be devastating.

Today’s greatest real estate investors know it, and it’s about time everyone else did, too: no real estate investing company is complete without a thoroughly crafted house flipping business plan . As the blueprint for running a successful company, business plans are instrumental in developing a new investor’s name and even furthering seasoned entrepreneurs’ success. All things considered, the majority of today’s most successful investors can attribute their current position to a sound business plan.

There’s no reason to think a well-devised business plan for flipping houses can’t maximize even a new investor’s potential.

With a flipping houses business plan in place, investors should have a blueprint to follow before they even get started.

Use a house flipping business plan template if you aren’t sure how to draft one yourself.

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House Flipping Business Plan Template

Written by Dave Lavinsky

House Flipping Business Plan

You’ve come to the right place to create your House Flipping business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their House Flipping companies.

Below is a template to help you create each section of your House Flipping business plan.

Executive Summary

Business overview.

SW Redevelopment is a new house flipping company that specializes in buying properties in Phoenix, Arizona and turning them into exquisite homes suitable for a better living experience. The company will operate in a professional setting, conveniently located near the center of the city. Our company partners with the best contractors and designers in the city to help renovate and design the best homes possible for Phoenix residents.

SW Redevelopment is run by Erin Briggs, an MBA graduate from Arizona State University with more than 20 years of experience working as a real estate broker. Throughout her career, she realized the hardest part of selling a house is getting it in perfect condition to put on the market. That’s why she decided to start a company that takes that pressure off residents so they can sell their homes with ease.

Product Offering

SW Redevelopment will be able to provide the following services:

• Personalize house designs (both interior and exterior)
• Property restoration or renovation
• Project cost evaluation
• Broker opinion of valuation
• Marketing property for lease/sale

SW Redevelopment will primarily offer single-family residential properties.

Customer Focus

SW Redevelopment will primarily serve house buyers and sellers interested in properties within the Phoenix, Arizona area. We expect much of our customer demographic will include middle to upper-class families and first-time homebuyers.

Management Team

SW Redevelopment’s most valuable asset is the expertise and experience of its founder, Erin Briggs. Erin has been a licensed real estate broker for over the past 20 years. She has spent much of her career working in different real estate agencies and has an in-depth knowledge of the Phoenix housing market. She knows that residents struggle to renovate their homes before selling and therefore created this company to take that process off their hands.

SW Redevelopment will employ an experienced assistant to help with various administrative duties around the office. The company will also hire or partner with the best contractors and designers to design the best-looking homes in the Phoenix area.

Success Factors

SW Redevelopment will be able to achieve success by offering the following competitive advantages:

• Design Team: The design teams are made up of creative individuals that are adept at renovation, restoration, building projects. They all highly value the opinions and preferences of their clients, making their designs personal and unique to each one.
• Management: Our management team has years of business and marketing experience that allows us to market and serve clients in a much more sophisticated manner than our competitors.
• Relationships: Having lived in the community for years, Erin Briggs knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for us to build branding and awareness of our company.
• Location: We are located in the heart of the city and are near prime locations where we’re exposed to individuals who have the ability to purchase properties.

Financial Highlights

SW Redevelopment is seeking a total funding of $1,070,000 of debt capital. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

• Office space build-out: $50,000
• Office equipment, supplies, and materials: $20,000
• Initial property purchase and renovations: $600,000
• Six months of overhead expenses (payroll, rent, utilities): $250,000
• Marketing costs: $50,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for SW Redevelopment.

Company Overview

Who is sw redevelopment, sw redevelopment history.

After 20 years of working in the real estate industry, Erin Briggs began researching what it would take to create a house-flipping company. This included a thorough analysis of the costs, market, demographics, and competition. Erin has compiled enough information to develop her business plan and approach investors.

Once her market analysis was complete, Erin Briggs began surveying the local office spaces available and located an ideal location for the business. Erin Briggs incorporated SW Redevelopment as a Limited Liability Corporation on October 1st, 2022.

Once the lease is finalized on the office space, renovations can be completed to make the office a welcoming environment to meet with clients.

Since incorporation, the company has achieved the following milestones:

• Acquired the perfect location for their headquarters
• Identified properties to start flipping
• Began recruiting key employees
• Utilized connections to find the best designers and contractors

SW Redevelopment Services

Industry analysis.

With the demand for houses increasing substantially over the past few years, there has also been a great demand for house-flipping services. House flipping helps sellers sell their homes with less work and helps buyers find the perfect home of their dreams.

The past few years have seen the largest increase in house flipping since 2006. Over 320,000 single-family homes and condos in the United States were flipped in 2021, up 26% from the previous year. This trend continued into 2022 and is expected to continue in 2023.

The factors contributing to this solid growth include rising home prices, increased sales, and greater construction combined with higher homebuyer demand. Furthermore, consumer spending will drive business expansion, and ensuing investor confidence in real estate will help raise commercial transaction volumes. Now is a great time to start a house-flipping business, as the market is sure to remain strong.

Customer Analysis

Demographic profile of target market.

The precise demographics for Phoenix, Arizona are:

Customer Segmentation

We will primarily target the following customer segments:

• Home sellers
• Home-buyers
• Middle and upper-class families

Competitive Analysis

Direct and indirect competitors.

SW Redevelopment will face competition from other companies with similar business profiles. A description of each competitor company is below.

Property Fortune Flippers

Founded in 1985, Property Fortune Flippers is an integrated network of companies concentrated on real estate opportunities. A leading acquirer of distressed residential real estate across the United States, Property Fortune Flippers has grown into a diversified, vertically integrated company, expanding its business footprint to include residential rehabilitation, non-performing loans, property management, private lending, brokerage, and escrow.

House Flippers

Established in 2004, House Flippers is a real estate investment, education, and coaching company. The company actively invests in real estate and has been involved in more than $1 billion of residential and commercial real estate investments since its inception. This success prompted the company to develop a systemized process that could be taught to prospective investors. The company manages between 25 and 40 ongoing redevelopment single-family and multi-family projects at all times, as well as acquiring apartment communities, retail shopping centers, and office buildings.

Equity Investors

Established in 2007, Equity Investors is a real estate investment firm. It seeks to invest in distressed residential and commercial real estate asset investment, management, multifamily, workouts, and turnaround strategies in the United States and internationally. It focuses on raising, investing, and managing third-party capital, originating and securitizing commercial mortgage loans. Since its inception, Equity Investors has participated in the investment of billions of dollars of equity in real estate assets.

Competitive Advantage

SW Redevelopment enjoys several advantages over its competitors. These advantages include:

Marketing Plan

Brand & value proposition.

The SW Redevelopment brand will focus on the Company’s unique value proposition:

• Client-focused designs, where the company’s design and floor plans are aligned with the customer’s specific needs
• Service built on long-term relationships and personal attention
• Big-firm expertise in a small-firm environment

Promotions Strategy

The promotions strategy for SW Redevelopment is as follows:

Direct Mail

The company will market its newly renovated homes with beautiful marketing pieces that are sent to local residents and real estate agents.

Open House Events

The company will host creative and appealing open house events to attract top real estate brokers and potential home buyers. Events will be entertaining and include food and drink.

Website/SEO

SW Redevelopment will invest heavily in developing a professional website that displays all of the features and benefits of the company. It will also invest heavily in SEO so the brand’s website will appear at the top of search engine results.

Social Media

SW Redevelopment will invest heavily in a social media advertising campaign. The marketing manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

SW Redevelopment will resell its renovated homes at a competitive market price.

Operations Plan

The following will be the operations plan for SW Redevelopment.

Operation Functions:

• Erin Briggs will be the President of the company. She will oversee all staff and manage client relations. She will also oversee all major aspects of the development and renovation projects.
• Erin is assisted by Eva Reed. Eva will serve as the administrative assistant, helping out with all paperwork, phone calls, and other general administrative tasks for the company.
• As the company grows and invests in new properties, Erin will hire several project managers to assist her.
• Erin is also in the process of hiring teams of architects, designers, contractors, and other professionals needed to successfully flip and renovate each property.

Milestones:

The following are a series of steps that lead to our vision of long-term success. SW Redevelopment expects to achieve the following milestones in the following six months:

3/202X            Finalize lease agreement

4/202X            Design and build out SW Redevelopment

5/202X            Hire and train initial staff

6/202X            Kickoff of promotional campaign

7/202X            Launch SW Redevelopment

8/202X            Reach break-even

Financial Plan

Key revenue & costs.

SW Redevelopment’s revenues will come primarily from the earnings from property sales and revamping projects. More than half of the deals each quarter are expected to be design projects, and the rest will be from sales.

As with most services, labor expenses will be key cost drivers. Erin Briggs and future employees will earn a competitive base salary. Furthermore, the costs of transactions are projected to be roughly 45% of regular revenue and cover the advertising of listings, travel and supply costs for clients, and other direct costs for each deal.

Ongoing marketing expenditures are also notable cost drivers for SW Redevelopment, especially in the first few years as the company works to establish itself in the market.

Funding Requirements and Use of Funds

Key assumptions.

The following table reflects the key revenue and cost assumptions made in the financial model:

Financial Projections

Income statement, balance sheet, cash flow statement, house flipping business plan faqs, what is a house flipping business plan.

A house flipping business plan is a plan to start and/or grow your house flipping business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your House Flipping business plan using our House Flipping Business Plan Template here .

What are the Main Types of House Flipping Businesses?

There are a number of different kinds of house flipping businesses , some examples include: Single Family Home, Multi-unit Complex, and Multi-investor Flipping.

How Do You Get Funding for Your House Flipping Business Plan?

House Flipping businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a House Flipping Business?

Starting a house flipping business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A House Flipping Business Plan - The first step in starting a business is to create a detailed house flipping business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your house flipping business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your house flipping business is in compliance with local laws.

3. Register Your House Flipping Business - Once you have chosen a legal structure, the next step is to register your house flipping business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your house flipping business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary House Flipping Equipment & Supplies - In order to start your house flipping business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your house flipping business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful house flipping business:

• How to Start a House Flipping Business

Other Helpful Templates

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House Flipping Business Plan Template

Written by Dave Lavinsky

House Flipping Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their house flipping businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a house flipping business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a House Flipping Business Plan?

A business plan provides a snapshot of your house flipping business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your House Flipping Business

If you’re looking to start a house flipping business, or grow your existing house flipping business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your house flipping business in order to improve your chances of success. Your house flipping business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for House Flipping Businesses

With regards to funding, the main sources of funding for a house flipping business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Personal savings is the other most common form of funding for a house flipping business. Venture capitalists will usually not fund a house flipping business. They might consider funding a house flipping business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.  With that said, personal savings and bank loans are the most common funding paths for house flippers.

Finish Your Business Plan Today!

If you want to start a house flipping business or expand your current one, you need a business plan. Below are links to each section of your house flipping business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of house flipping business you are operating and the status. For example, are you a startup, do you have a house flipping business that you would like to grow, or are you operating a chain of house flipping businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the house flipping industry. Discuss the type of house flipping business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of house flipping business you are operating.

For example, you might operate one of the following types of house flipping businesses:

• Single Family Home : this type of house flipping business focuses on one property that is usually bought at a low price, completely renovated and then sold for a profit.
• Multi-unit Complex: this type of business focuses on a multi-unit building where a house flipper rehabs every unit within the building and then either sells those units individually or sells the complex as a whole.
• Multi-investor Flipping: this type of house flipping is where houses are flipped between multiple investors before it enters the fix and flip stage.

In addition to explaining the type of house flipping business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, number of referrals, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the house flipping industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the house flipping industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your house flipping business plan:

• How big is the house flipping industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your house flipping business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your real estate flipping business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners, prospective homeowners, contractors and real estate agents.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of house flipping business you operate. Clearly, prospective buyers would respond to different marketing promotions than contractors, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most house flipping businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other house flipping businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes real estate agents, online home listing services and investors. You need to mention such competition as well.

With regards to direct competition, you want to describe the other house flipping businesses with which you compete. Most likely, your direct competitors will be house flippers located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of housing units do they buy, rehab and sell?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better design, construction and renovation services?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a house flipping business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of house flipping company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to house flipping, will you provide custom interior design services, financing or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your house flipping company. Document your location and mention how the location will impact your success. For example, is your house flipping business located in a busy retail district, shopping plaza, mall, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your house flipping marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites 
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan for flipping houses explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your house flipping business, including scouting properties, attending house auctions, renovating homes and meeting with potential buyers. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 50th home, or when you hope to reach $X in revenue. It could also be when you expect to expand your house flipping business to a new city.  

Management Team

To demonstrate your house flipping business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing house flipping businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing house flips or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you purchase one new home per month or per quarter? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your house flipping business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a house flipping business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or blueprints of homes you are working on.   Summary Putting together a business plan for your house flipping business is a worthwhile endeavor. If you follow the sample template above, by the time you are done, you will have an expert house flipping business plan; download it to PDF to show banks and investors. You will really understand the house flipping industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful house flipping business.

House Flipping Business Plan FAQs

What is the easiest way to complete my house flipping business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your House Flipping Business Plan.

Where Can I Download a House Flipping Business Plan PDF?

You can download a house flipping business plan pdf here.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of house flipping business you are operating and the status; for example, are you a startup, do you have a house flipping business that you would like to grow, or are you operating a chain of house flipping businesses?

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.   Other Helpful Business Plan Articles & Templates

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The world of real estate offers numerous opportunities for investors to make a profit. One of the most popular strategies in recent years has been house flipping, which involves purchasing a property, renovating it, and reselling it at a premium. However, to make a successful house-flipping business, you need more than just a good eye for potential properties. You also need a solid business plan that attracts investors and ensures project success. In this article, we will guide you through the process of creating a winning house-flipping business plan that investors can’t resist.

Research and Market Analysis

The first step in creating a winning house-flipping business plan is conducting thorough research and analysis of the market. This should include researching current trends and opportunities in the real estate market, analyzing local housing market conditions and demographic data, and evaluating competition to identify unique selling points for your house-flipping business.

Researching the market involves gathering valuable insights into the current state of the real estate industry and staying up-to-date with changes and trends that can impact your business. You can use various tools to conduct market research, such as online databases, industry reports, and housing market data. To analyze the local housing market, you should study key metrics such as home sales activity, median sales price, average days on the market, and the number of homes for sale in the target neighborhood.

Evaluating competition is also critical to identifying your unique selling points. You should research companies that offer similar services and analyze their business strategies and approaches. This analysis can help you identify gaps in the market or an opportunity to offer new and unique services.

Setting Clear Objectives and Strategies

The second step in creating a winning house-flipping business plan is setting clear objectives and strategies that align with the market research conducted in the first step. You need to ensure that your objectives and strategies are realistic and achievable and that they outline specific steps to achieve success.

Defining your short-term and long-term goals for your house-flipping business is essential for mapping out a plan for success. Short-term goals could include the number of house flips you want to accomplish in the next six months, while long-term goals could include building connections with reliable contractors and real estate agents.

It’s also crucial to outline strategies that align with your goals. For instance, if your goal is to flip more properties within a shorter period, you might consider strategies such as focusing on undervalued properties, developing a strong team of contractors, or sourcing financing from alternative lenders to reduce holding costs.

Financial Analysis and Budgeting

The third step in creating a winning house-flipping business plan is creating a comprehensive financial analysis and budgeting plan. Financial analysis helps you to identify the potential profit margins of your business and to understand the costs associated with each project. Creating a budget is essential to ensure that each project is profitable and that you stay on track with your financial objectives.

Some key financial metrics you should consider when creating a financial analysis are Gross Income, Operating Expenses, and Net Income. Gross income represents the revenue you will generate from flipping real estate, while operating expenses are the costs associated with running your business, such as property taxes and salaries. Net income is the money you will make after deducting all the operating expenses from your gross income.

To create a budget, you should consider the costs associated with each property, including acquisition costs, renovation expenses, and holding costs. Acquisition costs include the purchase price, closing costs, and inspection fees. The renovation cost includes all the expenses related to repairing the property, fixing any issues, and updating it to meet the current housing trends. Holding costs include mortgage payments, property taxes, and insurance costs.

Marketing and Sales Strategies

The fourth step in creating a winning house-flipping business plan is developing a comprehensive marketing and sales strategy. Marketing and sales strategies help to ensure that you attract the right buyers, increase exposure to your properties, and maximize your profits from each sale. A well-crafted marketing and sales strategy focuses on identifying potential buyers and presenting your properties in the best way possible.

There are several strategies to consider when developing your marketing and sales strategies. You might consider listing your properties online, holding open houses, or utilizing social media advertising. You should analyze your target market and determine what channels will work best for you.

In addition, understanding pricing strategies and negotiation tactics is essential for securing the right sale price for your properties. Understanding how to present your properties, how to negotiate with buyers, and how to price your properties competitively can significantly impact your profitability.

Team Building and Partnerships

The fifth step in creating a winning house-flipping business plan is developing a strong and reliable team to work with. Working with the right team ensures that your projects are completed on time, on budget, and meet your quality expectations.

Your team should include reliable contractors, real estate agents who understand the local market well, project managers, and bookkeepers. Partnering with lenders and investors who can fund your projects can alleviate financial stress and help secure your business success.

Risk Management and Contingency Planning

The sixth step in creating a winning house-flipping business plan is planning for potential risks. Risks can arise at any point in the process, from site acquisition to renovation to sale. A contingency plan outlines what to do in case of risks and ensures project success even under difficult circumstances.

To identify the potential risks associated with real estate investing, you should consider common risks such as construction delays, market fluctuations, legal issues, or hidden property issues. Identifying potential risks allows you to mitigate them effectively and to have a contingency plan for each situation.

Presenting Your Business Plan to Investors

The last step in creating a winning house-flipping business plan is presenting your plan to potential investors. Your business plan should be well-crafted, visually appealing, and include all the essential information regarding the business strategies and potential profits. A business plan for investors should be customized to them, addressing specific concerns and goals they might have.

Your business plan should include an executive summary that highlights the key points of your business plan, presented in a clear and concise way. It should also include a financial plan, including details such as profit margins and potential ROI. Your business plan should be visually appealing and professional and should be presented in a manner that demonstrates your confidence in your business and its potential for profitability.

Creating a winning house-flipping business plan is critical to securing financing and ensuring the success of your business. This requires thorough research and analysis of the market, clear objectives and strategies, comprehensive financial analysis and budgeting, a marketing and sales strategy, a reliable team, and contingency planning. By following these steps, you can create a business plan that is attractive to investors, mitigates potential risks, and sets your business up for success.

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How to Start a House Flipping Business in 5 Simple Steps

Flipping houses is hard work with a huge potential return on investment. Start making money and improving the neighborhood at the same time.

We’re here to teach you where to start – from showing you where to find inspiration to making sure your business can operate legally.

5 Steps to Start a House Flipping Business

Flipping houses might seem intimidating. But it’s much easier if you follow this formula:

• Establish a vision
• Understand your financing
• Make connections

The Easy Parts of Starting a House Flipping Business

One of the best parts about starting a house flipping business is that there are incredible opportunities for a high ROI.

With other businesses, this isn’t always the case. You may invest a ton of time and money into creating a product, only to find out that there isn’t as large of an audience for it as you thought.

Or, you may have to make hundreds of sales to see a significant profit. With house flipping, this isn’t the case.

People are always buying houses, and there are many tried and true ways to increase the value of a house. Most successful flippers can expect to see a minimum profit of at least 10% of the sales price.

Not only that, but you can analyze the housing market to determine the best times and places to buy. Unlike other businesses, there is a ton of easily accessible data about the current state of the market and how to best optimize it.

Finally, while real estate markets differ from city to city and region to region, you can start a house flipping business just about anywhere. People buy houses in every city and county in the US.

The Difficult Parts of Starting a House Flipping Business

Buying your first property isn’t as simple as finding a house with potential and putting in an offer. 

To run a house flipping business, it is essential to get a good grasp on the nitty-gritty financial details. There are a ton of different factors that go into this, from understanding investment property loans to thinking critically about how to manage your finances.

You’ll want to make sure that you can afford to invest a chunk of money into buying properties, as well as have enough money to sustain yourself while you’re renovating. Not only that, but you’ll need to ensure that with all of your work, you get an ROI that is with your time.

As a brand new business, you likely won’t be eligible for a traditional bank loan. The bank will most likely need to see that you have a consistent pattern of buying and selling over time for you to be eligible. Instead, when you’re just starting off, you can try a few different options.

First, you could opt for a hard-money loan. Hard-money loans come from private funding from investors or individuals. Unlike more traditional bank loans, your credit score and income do not play as large of a role.

Essentially, the house you purchase would serve as collateral and could be seized by your investors if you don’t pay back your loan. These loans are some of the easiest to obtain, but this convenience comes at a price. They are typically more short-term, typically ranging anywhere from 6 months to 5 years to pay it back, and usually also have higher interest rates.

Another option is a home equity loan, otherwise known as a HELOC. These are frequently considered to be a “second mortgage.”

Essentially, you can take some of the money you have put towards paying off your home and use it to finance your loan for the house you are planning to flip. However, to get this, it is essential to have a low debt-to-income ratio, as well as great credit.

This is a more affordable option since the loans for these typically have low-interest rates, but you will need to be cautious when potentially choosing this option. If you are unable to make payments, you could be putting your personal home at risk.

Finally, you could opt for a loan from your friends or family. This can be an excellent choice for beginner house flippers. They are less formal, which can be nice, but it is also important to quickly establish the terms of the loan before getting too far along in the buying process.

Take some time to think about which loan would work best for you and move on from there. Remember, it is also possible to use “combination financing” meaning that you choose multiple options to finance your business.

Step 1: Establish a Vision

Begin by researching the many different ways people approach house flipping businesses, and then lay out exactly how you want yours to look.

Seek Inspiration from Experts

House flipping has been on the rise in the last few years, meaning that there are plenty of individuals and teams to gain wisdom from. As you start your business, take time every week to learn from your fellow house-flippers.

One of the most time-conducive ways to do this is to listen to podcasts – whether on your drive to your day job or while you’re cooking dinner. This will help you find community, get advice, and keep up with the latest trends in the business.

Some of the most popular house flipping podcasts include:

• 7 Figure Flipping with Bill Allen
• The Flip Talk Podcast
• Investing in Real Estate
• Flipping Houses for Rookies
• BiggerPockets Business Podcast

If you need a break but still want to get inspired, a few episodes of HGTV house flipping shows never hurt anyone. However, your own house flip will sadly not start and end within the span of an hour.

Write a Business Plan

Before you launch into the house flipping process, you’ll want to spend some time devising a business plan. A business plan is a detailed document that consists of many different elements, including your company name and description, mission statement, budget, market analysis, and more.

The process of creating this document will be an excellent way to steer your business as you establish yourself and start to grow. Not only that, but if you’re ever feeling lost along the way, you can come back to your business plan to refocus and start hitting milestones again.

If this feels overwhelming, fear not! The Quick Sprout team has devised a step-by-step guide to help you write your business plan. 

Step 2: Research

If you’re reading this post, you already have a head start on this! However, there are a few extra steps you’ll have to take.

Look at national trends

This is one step that you’ll want to repeat over time. National trends in the housing market can be incredibly informative about what your next move as a house flipper should be. For example, right now, prices for houses have gone up exponentially.

This means that it may be more expensive to find a house to purchase, but that the improvements you make could have an even higher ROI than normal.

Learn about property potential

Now, take the previous step and localize. Set aside some time to investigate what the property scene looks like in your region, state, and county.

Try going on Zillow, Trulia, and Redfin to see what houses are selling for in the neighborhoods around you. This will help you get more familiar with what you have to work with and get the gears turning when it comes time to find potential properties. 

Read about popular renovations

Above all else, the goal of flipping houses is to provide value for your customers and to get as much ROI as you can. Do some quick Googling to find out what renovations will increase the value of your property the most.

Plus, think about what you have looked for when it comes to purchasing houses of your own. It’s hard to go wrong with installing wooden floors and updating the kitchen and bathrooms.

Then, take it a step further and brush up on your handyman skills by doing practice projects in your own home.

Step 3: Legality

Before you officially launch your business, there are several steps to take to establish your legality.

Apply for an EIN

An employee identification number, also called an EIN, is essentially a social security number for your business.

This ensures that the government is aware that your business exists. It’s required to open a business bank account, apply for a business license, file your tax returns, and even apply for traditional loans.

Luckily, it only takes a few minutes to apply on the IRS website.

Choose a business entity 

To legally operate your business, you’ll need to choose a business entity, as well as register it in the state where you are planning to conduct business. The best choice for most people who are operating house flipping businesses is an LLC, or a Limited Liability Company. 

To put it simply, LLCs draw a line between your business assets and your personal assets. This means that if you run into any legal or financial troubles, there is a much lower chance that your possessions can be seized for collateral. In addition, LLCs are easy to register online and are more flexible when it comes to taxes. 

Use a business formation service to get all of this paperwork taken care of early on. This is going to make it much easier moving forward as you want to expense things and keep your personal assets out of trouble.

Other options include registering as a sole proprietorship or a corporation. A sole proprietorship is even easier to set up than an LLC and does not require registration. Instead, owners will have to file their taxes on their personal tax returns. Unfortunately, this does not offer liability protection.

The other option, a corporation, does offer liability protection, but is much more expensive to establish, and has other requirements, such as having annual meetings and a board of directors.

Obtain licenses and permits

These will change based on the state you are operating out of, so make sure to research the specific requirements for you. Most of this information can be found by speaking with your local chamber of commerce, or even just a quick Google search. You can expect to need several permits, since construction is essential to flipping houses.

Step 4: Understand your financing

It’s big and it’s ugly, but it’s necessary. Before you launch into your business, you’ll need to make sure that you can afford it, as well as protect your assets.

Consider meeting with your accountant (or hire one!)

Anytime you start a new business, a good accountant will be an important ally.

As we discussed previously, house flipping businesses involve moving around a lot of cash – from getting loans to purchasing equipment to hiring professionals to actually selling the homes.

An accountant can work with you in order to determine your budget, as well as help you plan for the future. 

Get insured

One of the best ways to make sure that you can responsibly retain your finances no matter the situation is getting the correct insurance. There are a variety of insurance options that could be beneficial to purchase.

General liability insurance: If you don’t get any other insurance, make sure to get this one. General liability insurance covers bodily injury, property damage, medical payments, legal defense and judgment, and more. This is the most common insurance that business owners invest in across the board.

Commercial property insurance: This type of insurance can help to cover equipment costs. If there was a natural disaster and you lost your whole collection of machinery, you would be able to file a claim to receive financial help in order to replace it.

Commercial auto insurance: If you have a car or truck you use primarily for business, it could be worth it to invest in commercial auto insurance. Between using cars to pick up supplies and haul furniture, it can be an essential part of your business, which means that it should get insured.

Step 5: Make connections

There are so many factors that go into flipping houses, from buying to fixing them to selling them again. To best succeed, you’ll have to gather your forces and build an Avengers-worthy team.

Real Estate Agent

You will want to spend some real time and energy when it comes to finding a real estate agent you love. Odds are, you’ll be working with them extensively, and ideally over multiple projects. 

A trusted real estate agent can help you choose the right location to flip a house. They will be able to expertly evaluate neighborhoods and analyze what the expected resale value of the properties will likely be. Not only that, but they’ll help you to actually buy and sell the property.

Contractors

For those who want to have a house flipping business, but not do all of the on-site construction, this is for you. It could be valuable to hire a general contractor to lead the project, especially if you are flipping multiple homes at once. 

Hiring a contractor would likely escalate the cost of doing business, though. The contractor would probably mark up prices in order for them to ensure that they are also profiting off of this partnership. 

The bottom line: If you can renovate the house alone or with a small team, do it, but if not, help isn’t far – for a fee.

Legal counsel

When it comes to real estate, there is no shortage of opportunities for issues in legality to arise. Having trusted legal counsel will help to navigate the many documents and contracts you will have to look through, as well as ensure that your properties meet the legal standards for the area.

By investing in this team, you’ll be able to get credible opinions as you move through every facet of the buying and selling process.

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Here's how you start a profitable house flipping enterprise.

Embarking on a house flipping adventure can be an exhilarating journey for those with a keen eye for potential and a drive to transform spaces.

Whether you're a seasoned real estate investor seeking new challenges or a DIY enthusiast ready to take your skills to the next level, flipping houses requires strategic planning and a strong work ethic.

In this blog post, we'll navigate you through the crucial stages of house flipping, from scouting the perfect fixer-upper to the final sale.

How you should prepare to start a house flipping enterprise

Market research and concept, choose a concept.

Choosing a concept is one of the first steps for a house flipper because it determines the scope of the renovation, the target market, and the potential return on investment. It's about envisioning the transformation of a property and understanding who the end buyer will be.

This concept will influence your decisions on the extent of the renovations, the design choices, the budget allocation, and the marketing strategy. A well-defined concept can help your flipped property stand out in the market and appeal to the right buyers.

In simple terms, picking the right concept for house flipping is like deciding on the theme of a novel before you start writing the chapters.

To assist you in making an informed decision, we have summarized the most popular concepts for house flipping in the table below.

Pick an audience

As a house flipper, your renovation and design choices should be tailored to the specific market segment you aim to attract. This is crucial because the preferences and needs of your potential buyers will dictate the modifications and upgrades you make to the property.

For instance, if you're targeting first-time homebuyers, you might focus on creating a space that is both affordable and turnkey, with modern but cost-effective finishes. You'd likely choose a property in an area with good schools and amenities that appeal to those starting a family.

Conversely, if you're aiming to attract retirees, your renovations might include comfort and accessibility features such as a single-story layout, low-maintenance landscaping, and higher-end finishes that appeal to those looking to downsize but maintain a certain lifestyle.

Understanding your target market is essential because it influences every aspect of the house flipping process, from the property you purchase to the renovations you undertake, and even the marketing strategy you employ to sell the home. It's akin to tailoring a suit; you customize the fit according to the measurements of the person who will wear it to ensure it's just right.

Moreover, knowing your audience enables you to market the property more effectively. If you're clear on who you're trying to attract, you can craft your sales pitch to resonate with them, whether that's through staging the home to appeal to their taste or advertising in mediums that they are most likely to engage with.

In our guide for house flippers , we have outlined different market segments that could be relevant for your real estate investments.

To provide you with a clearer understanding of potential buyer segments for your flipped houses, we've detailed a few typical examples below.

Get familiar with the industry trends

As a house flipper, staying abreast of the latest trends in real estate and interior design is crucial for the success of your projects. These trends can dictate what potential buyers are looking for and can greatly influence the saleability and profitability of your flipped properties.

Emerging trends in home design and amenities can set your properties apart and make them more attractive to buyers. For instance, incorporating smart home technology or eco-friendly materials can appeal to a market that is increasingly conscious of both convenience and sustainability.

Our house flipping business plan is updated biannually to reflect these new and emerging trends. We believe this will assist you in creating flips that resonate with current buyer preferences and market demands.

For example, open floor plans continue to be in high demand, as they offer a sense of space and flexibility. Energy-efficient appliances and solar panels are also becoming more popular as buyers look to reduce their carbon footprint and save on utility bills.

Additionally, with more people working from home, creating a dedicated home office space can be a major selling point. Outdoor living spaces such as decks and patios are also highly sought after as people seek to enjoy more time outdoors.

In the age of social media, having photogenic features and design elements can also help your property stand out in listings and attract more potential buyers.

We have compiled a list of more trends in the table below.

However, there are also some declining trends.

For instance, overly customized or themed rooms can turn off potential buyers who prefer a blank canvas they can personalize. Similarly, the use of bold, bright colors in large areas can be less appealing compared to more subdued, neutral tones.

Also, while whirlpool tubs were once a luxury feature, they are now often seen as unnecessary and difficult to maintain, with many buyers preferring a larger shower space instead.

Finally, with the growing emphasis on sustainability, features that are perceived as environmentally unfriendly, such as non-energy-efficient appliances and single-pane windows, are increasingly undesirable.

Choosing the right property

Choosing the right property for a house flip is a critical decision that can significantly impact the profitability of your investment. It requires careful consideration of several key factors.

Begin by analyzing the local real estate market. Understanding the trends in property values, the speed at which homes sell, and the types of homes that are in demand will guide your decision on where to invest. If the market is hot for starter homes, you might focus on smaller properties that can be quickly renovated and sold to first-time homebuyers.

Location is everything in real estate. A property in a desirable neighborhood or one that's on the upswing can command a higher resale price. Look for areas with good schools, low crime rates, and access to amenities like parks, shops, and restaurants.

Accessibility to major highways and public transportation can also add value to a property and make it more attractive to potential buyers.

Competition among other flippers and real estate investors can be fierce. you should find a balance between choosing a popular area and one where you won't be outbid on every potential property. Sometimes, emerging neighborhoods offer better opportunities for profit than established ones with high investor activity.

The purchase price and renovation costs must be carefully calculated. The goal is to buy low and sell high, but you must ensure that the cost of acquiring and fixing up the property leaves enough room for a healthy profit margin. A thorough inspection before purchasing can help avoid costly surprises during the renovation process.

Negotiating a good purchase price is just as important as the final sale price. Look for motivated sellers or properties that have been on the market for a while, as they may offer more room for negotiation.

Consider the potential for growth in the area. Are there planned developments or infrastructure improvements that could increase property values? Being ahead of the curve can result in significant gains when it's time to sell.

Don't underestimate the importance of parking and garage space. Homes with ample parking can be more appealing to buyers, especially in urban areas where parking is at a premium.

Utilizing real estate analytics and investment tools can provide insights into the best areas for house flipping. These tools can help identify neighborhoods with the right balance of affordability, demand, and potential for appreciation.

The choice between urban, suburban, or rural areas depends on your target market and investment strategy. Urban areas might offer quick flips but come with higher property costs and competition. Suburban and rural areas might have more affordable properties but could take longer to sell.

Being near employment centers, hospitals, or universities can make a property more attractive to potential buyers who work or study in those areas.

Understanding local zoning laws, building codes, and permit processes is crucial to ensure that your renovation plans are feasible. Compliance with these regulations from the start can save you time and money in the long run.

Finally, evaluating the long-term potential of a property is essential. Consider future area developments, changes in zoning laws, or other factors that could affect your ability to sell the property at a profit.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to start a house flipping business can vary significantly, ranging from $30,000 to $100,000 for a modest flip to $150,000 to over $500,000 for a more substantial property in a competitive market .

If you want to know the exact budget you will need for your own house flipping venture and also get a full detailed list of expenses, you can use the financial plan we have created, tailored to house flipping . This excel file is designed to be very user-friendly and will provide you with an instant and full detailed analysis of your future project.

The budget can vary the most due to the location of the property. Properties in high-demand areas tend to have higher purchase prices, which can significantly increase the initial investment required.

The condition of the property also plays a crucial role in determining the initial investment. A property that requires extensive repairs and renovations will naturally demand a larger budget compared to one that needs only cosmetic updates.

The quality of renovations is another significant factor. High-quality, durable materials and workmanship are expensive but can increase the property's value and appeal to buyers. Conversely, starting with more cost-effective solutions can reduce initial costs but may not yield as high a return on investment.

If the available capital is limited, it's still possible to start a house flipping business, but careful planning and prioritization are crucial. The very minimum budget could be around $30,000 to $50,000 if you choose a property in a less competitive market, do much of the renovation work yourself, and use cost-effective materials and solutions. This approach requires a hands-on strategy and a good eye for properties with potential that are undervalued.

To make the most of a limited budget, consider the following tips.

Identify all your expenses

The expenses for a house flipper include property acquisition, renovation and repair costs, holding costs, selling expenses, and a reserve for unexpected expenses.

Property acquisition is the initial and often the most significant expense. The cost can vary greatly depending on the location, property size, and condition, ranging from $50,000 to $500,000 or more. It's essential to factor in the after-repair value (ARV) of the property to ensure a profitable investment.

Renovation and repair costs can also vary widely based on the extent of the work needed. On average, a house flipper might spend between $20,000 to $150,000 on renovations. This includes materials and labor for everything from cosmetic updates to major structural repairs.

Holding costs are the expenses incurred while owning the property, such as property taxes, insurance, utilities, and financing costs. These can range from $2,000 to $10,000 or more, depending on the length of the flip and the property's location.

Selling expenses include real estate agent commissions, staging, and marketing the property for sale. These costs can range from 8% to 10% of the property's sale price.

Finally, setting aside a reserve for unexpected expenses is crucial. Unforeseen issues during renovation can quickly add up, so it's wise to have at least 10% to 20% of your total budget reserved for contingencies.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for house flippers .

Business plan and financing

Make a solid business plan.

Embarking on a house flipping venture? Then you'll definitely want to consider the importance of crafting a business plan for house flipping . It's a critical step not to be overlooked.

Why is a business plan so vital for a house flipper? It acts as a strategic guide, detailing your objectives, the methods you'll employ to achieve them, and the potential hurdles you may encounter along the way. A comprehensive business plan is indispensable for maintaining organization and focus. Moreover, it's a necessity when you're seeking funding from investors or financial institutions, as it showcases the feasibility and profitability of your house flipping endeavors.

The essential elements of a house flipping business plan include market analysis, financial planning, and an operational strategy, among others. Market analysis is crucial for understanding the real estate landscape, pinpointing your target market, and recognizing what buyers are looking for. It involves studying housing market trends, identifying your competition, and determining a unique angle that sets your property apart.

Financial planning is another key component. This section should detail your estimated purchase costs, renovation budgets, holding costs (such as taxes, insurance, and utilities), and selling expenses. It should also include projections for profit margins, cash flow analysis, and a timeline for when you expect to sell the property and realize your gains. Financial planning provides a clear view of the expected financial outcomes for you and your potential investors. You can find a detailed example in our financial plan for house flipping .

While the structure of a house flipping business plan shares commonalities with other business plans, certain aspects are particularly emphasized.

For instance, a house flipper will focus heavily on property acquisition (finding properties with high potential at a reasonable price), renovation planning (creating a cost-effective and appealing renovation plan), and market timing (understanding the best times to buy and sell for maximum profit). Additionally, ensuring compliance with zoning laws and building codes is crucial for a house flipping business.

To craft an effective house flipping business plan, thorough research is imperative. Be realistic with your financial estimates and understand the risks involved. Engage with real estate professionals to gain insights into the market and establish a network of reliable contractors. Also, consider the scalability of your flipping strategy and how you might grow your business over time.

For a house flipper, it's also important to develop a strong brand and marketing strategy that appeals to potential buyers. Emphasizing the quality of renovations, the design features, or the lifestyle that your properties offer can set your flips apart in a competitive market.

Success in house flipping doesn't just rely on the ability to renovate and sell homes but also on meticulous planning, market knowledge, prudent financial management, and efficient execution of your operational plan.

Remember, a business plan is not static; it's a dynamic document that should be revisited and refined as your house flipping business grows and the market changes.

Get financed

Don't have enough capital to start your house flipping business? No problem, there are multiple financing options available to you.

As a house flipper, you can secure financing from various sources: private investors, hard money lenders, traditional bank loans, and even crowdfunding platforms.

Each financing method comes with its own set of benefits and things to consider.

Private investors might be interested in funding your flip in exchange for a share of the profits. This can be a great option because it often comes with flexible terms and doesn't require traditional loan payments.

However, you'll need to share your profits and ensure that the investment opportunity is attractive enough to gain their interest. To convince private investors, you'll need a detailed investment proposal that outlines the potential return on investment, your experience and track record with house flipping, and a comprehensive analysis of the property and the market.

Hard money loans are another popular option for house flippers. These are short-term loans with higher interest rates, designed specifically for real estate investments.

They can be obtained quickly and are based more on the property's potential after repair value (ARV) than your credit score. However, they come with higher costs and typically need to be repaid within a year or so, which can be risky if the flip takes longer than expected or doesn't sell for as much as planned.

Traditional bank loans are a more conventional route, offering lower interest rates but requiring a good credit score and a down payment, often around 20% to 25% of the loan amount. These loans are less risky but harder to qualify for, especially if you're new to house flipping.

Crowdfunding platforms are a newer option, allowing you to raise small amounts of money from a large number of people online. This can be a good way to secure funding without giving up equity or paying high-interest rates, but it requires a compelling story and often, a strong social media presence or marketing strategy.

To effectively secure financing, you'll need to present a solid business plan that includes detailed financial projections, a thorough market analysis, and a clear strategy for renovating and selling the property. You should also be prepared to demonstrate your knowledge of the real estate market, your renovation plan, and your timeline for the flip.

Lenders and investors will evaluate your proposal based on the property's potential, your experience and track record, the clarity and feasibility of your business plan, and your financial projections.

Here's a summary table of the various financing options mentioned for house flipping, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

House flipping involves purchasing properties, renovating them, and selling them for a profit. This process requires a thorough understanding of real estate markets, construction, and the legal and regulatory environment. As a house flipper, you must comply with various regulations and requirements to ensure the safety of your renovations and the legality of your sales transactions.

The specific permits, licenses, building codes, inspection schedules, consequences of non-compliance, and insurance policies you'll need will vary by location, but there are general guidelines that apply in many places.

First, you'll need to obtain the necessary business permits and licenses.

This typically includes a business license from your city or county, and possibly a contractor's license if you plan to do the renovation work yourself. If you hire subcontractors, they must be properly licensed and insured. Depending on the scope of your renovations, you may also need to obtain building permits for structural, electrical, plumbing, or other major work.

It's crucial to check with your local government and building department to understand the specific requirements for your area.

Regarding building codes and regulations, house flippers must comply with local construction standards to ensure the safety and habitability of the homes they renovate.

This includes obtaining the necessary permits before starting work, following building codes during renovations, and passing all required inspections upon completion of the work. Inspections are conducted to ensure compliance with building codes and can occur at various stages of the renovation process. The frequency and types of inspections will depend on the extent of the renovations.

Non-compliance with building codes and permit requirements can result in consequences ranging from fines to stop-work orders. In severe cases, non-compliance can lead to legal action or the requirement to undo or redo work. It's essential to take these regulations seriously and ensure your renovations comply with all local building standards.

Insurance is another critical aspect of protecting your house flipping business. At a minimum, you'll need general liability insurance to cover accidents or injuries that occur on your renovation sites.

Property insurance is also important to protect your investment properties from damage or theft during the renovation process. If you have employees or contractors working on the site, workers' compensation insurance will likely be required by law to cover injuries or illnesses that occur as a result of their work.

Additionally, considering builder's risk insurance might be wise, as it can protect your projects from specific risks such as fire, theft, or weather damage during the construction phase.

Business Structure

The three common structures for starting a house flipping business are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has distinct features and implications for your venture.

Please note that we are not legal experts (we specialize in real estate investment strategies and financial planning) and that your choice should be based on how much risk you're willing to take on, how you prefer to handle taxes, and your plans for growing and possibly selling your house flipping business.

In simple terms, a sole proprietorship is the easiest to set up but carries personal liability. A partnership allows for shared responsibility but requires clear agreements to manage risks and profits. An LLC offers a balance of protection and flexibility, making it a popular choice for many entrepreneurs in the real estate flipping industry.

Consider your long-term goals, and consult with a financial advisor or attorney to make the best choice for your house flipping business.

We’ll make it easier for you, here is a summary table.

Getting started to start a house flipping enterprise

Offer development, craft your offer.

Your property renovations and design choices will be the reason why your house flipping business is successful (or why it is failing).

To start, identify the preferences and needs of your target market through direct engagement, such as open houses and real estate forums, and indirect research, like analyzing market trends and reviewing what successful flippers are doing in your area.

Once you have a clear picture of your target market's preferences, you can begin to plan renovations that not only appeal to their tastes but also stand out.

Incorporating local architectural styles and materials into your property renovations is a fantastic way to enhance appeal and sustainability.

This approach not only supports local businesses and reduces your carbon footprint but also ensures that your renovations are well-received and valued by the community. Make connections with local contractors and suppliers to understand what materials and design elements are popular and sustainable. This knowledge allows you to plan your flips with the community in mind, offering design choices that can attract buyers looking for homes that fit the local aesthetic. Tailoring your renovations to the local market also creates a sense of belonging among your buyers, as they feel their new home is truly a part of the community.

To ensure your flipped properties stand out in a competitive market, focus on uniqueness and quality.

This can be achieved by offering design features that are hard to find elsewhere, such as smart home technology, energy-efficient upgrades, or custom-built elements. Telling the story behind your renovations, such as the history of the property or the inspiration behind a design choice, can also add a unique appeal.

Ensuring consistency and quality in your renovations involves establishing rigorous standards and processes.

This can include detailed project plans with precise timelines and budgets, thorough training for your renovation team, and regular quality checks. Consistency is key to building trust with your buyers, as they will know exactly what to expect from one of your flipped houses. Invest in high-quality materials and craftsmanship, and don’t shy away from refining your processes until you're confident they meet your standards.

Also, utilizing buyer feedback is essential for continuous improvement and refinement of your house flipping offerings. Create channels for feedback, such as follow-up calls, online surveys, and social media engagement, to understand what your buyers love and where there might be room for improvement.

Be open to constructive criticism and willing to make changes based on buyer input. This not only helps in refining your renovation strategies but also shows your buyers that you value their opinions, fostering trust and repeat business.

Determinate the right pricing

As a house flipper, setting the right price for your renovated properties is crucial to ensure a profitable venture while also appealing to potential buyers. Here's a strategy to balance profitability and market attractiveness.

Firstly, you must have a comprehensive understanding of your total investment in the property. This includes the purchase price, renovation costs, carrying costs such as utilities and property taxes, and any other expenses incurred during the flipping process.

Ensuring your selling price not only covers these costs but also provides a healthy profit margin is essential.

Next, analyze the real estate market to understand the going rates for comparable homes in the area. This research will help you determine a competitive yet reasonable price point. You don't necessarily need to be the cheapest option, but you should be within a range that makes sense for the location and the quality of your renovations.

Understanding the demographics and financial capabilities of your target buyers is also important. You can gather this information through market research, real estate agents' insights, or even community engagement. Knowing what your buyers are willing to pay is key to setting a price that feels fair to them and profitable for you.

Psychological pricing can be applied in real estate as well. For example, pricing a property at $299,999 instead of $300,000 can make a significant psychological difference to a buyer, even though the actual price difference is minimal.

However, you should use this strategy wisely to maintain the perceived value of the property.

The perceived value of a flipped house is influenced by the quality of renovations, the design choices made, and the overall presentation of the property. High-quality finishes, professional staging, and high-resolution photography can justify a higher price because buyers perceive they are getting a better product.

Seasonal trends can also affect house flipping. For instance, the housing market often heats up in the spring and summer, which might allow for a higher asking price due to increased demand. Conversely, pricing more competitively during slower seasons might be necessary to attract buyers.

When introducing a newly flipped property to the market, consider an initial pricing strategy that will draw attention. This could include a competitive price point or even an open house event to generate buzz. Once you've gauged interest and received feedback, you can adjust the price accordingly.

For properties listed online, ensure that your pricing strategy takes into account the expectations of online buyers, who often do extensive research before viewing homes in person. Offering virtual tours and high-quality online listings can add value and justify your pricing.

Lastly, the psychological impact of discounting in real estate should be approached with caution. While price reductions can stimulate interest if a property isn't selling, frequent or large discounts can signal to buyers that something may be wrong with the property or that the initial price was inflated. Use price reductions strategically and sparingly to maintain the property's value perception.

Manage relationships with your suppliers

Poor relationships with contractors and suppliers could derail your house flipping business in no time.

On the contrary, building strong ties with contractors, suppliers, and real estate agents will ensure the timely and cost-effective renovation of properties.

Regular communication, timely payments, and expressing appreciation for their workmanship and services can foster loyalty and reliability. Be transparent about your expectations and project timelines, and whenever possible, visit their past projects. This deepens your understanding of their work quality and challenges, enabling you to work together more effectively.

Additionally, consider long-term partnerships for key renovation services to secure better rates and guarantee availability, but also maintain a network of backup contractors to mitigate risks of delays.

For managing renovation materials, inventory management techniques such as Just-In-Time (JIT) are essential. This approach ensures that materials are ordered and received as needed for each phase of the renovation, reducing holding costs. Regularly monitor project timelines to adjust orders according to the renovation progress, avoiding overstocking and minimizing carrying costs.

Technology can significantly improve project management and reduce excess expenditure in house flipping.

Implementing a project management system that integrates with budgeting tools allows for real-time tracking of expenses and progress. This technology can help predict costs more accurately, streamline ordering processes, and identify trends that can inform investment decisions and renovation strategies.

Additionally, digital tools can facilitate better communication with contractors and suppliers, enabling more efficient scheduling and collaboration.

Scaling house flipping operations presents challenges such as maintaining renovation quality, managing increased costs, and ensuring timely completion. Address these challenges by standardizing renovation plans and processes, training your team thoroughly, and investing in tools that can increase efficiency without compromising renovation quality.

Scaling up also means more materials and labor, so negotiate pricing with suppliers and contractors for bulk purchases and services without sacrificing workmanship quality. Quality control becomes even more critical as operations increase, requiring strict adherence to renovation standards and more frequent progress checks.

Implementing effective cost control measures involves scrutinizing every aspect of purchasing and using building materials and services. Regularly review and negotiate with suppliers and contractors to ensure you're getting the best prices without compromising quality.

Also, consider alternative materials that may offer cost savings or seasonal pricing advantages. Utilize technology to track and analyze costs, timelines, and material usage to identify areas for improvement. Reducing excess not only cuts costs but also aligns with sustainable practices, appealing to environmentally conscious buyers.

Hire the right people

When starting out as a house flipper, you should assemble a team that can efficiently handle the various aspects of renovating and selling properties. Initially, you may not need a full-time staff, especially if you're working with a tight budget.

At the core, your house flipping team should include skilled tradespeople who can execute the renovations, a real estate agent for buying and selling properties, and a project manager to oversee the entire flipping process.

For renovations, you'll need reliable contractors such as carpenters, electricians, plumbers, and painters who can deliver quality work on time and within budget. A general contractor can be invaluable, serving as the point person to coordinate all renovation activities and ensure that the work meets industry standards.

A savvy real estate agent with experience in the local market is crucial for identifying potential properties and negotiating purchases and sales. They can also provide insights into what features and improvements are most likely to increase a property's value and appeal to buyers.

A project manager or the house flipper themselves should be able to manage the renovation process, keep the project on schedule, and handle administrative tasks such as budgeting, obtaining permits, and ensuring compliance with building codes and regulations.

As your house flipping business grows, you might consider hiring additional staff such as interior designers, landscapers, or marketing specialists to enhance the appeal of your properties and reach potential buyers.

Outsourcing can be a strategic move for roles like accounting, legal services, and staging, allowing you to focus on your core competencies while leveraging external expertise.

When hiring for key positions, prioritize candidates with a mix of technical skills, experience, and a passion for renovation and real estate.

For contractors, look for proper licensing, a solid track record of quality work, and positive references. Real estate agents should have a strong sales background, knowledge of the local market, and excellent negotiation skills. For project managers, seek individuals with experience in construction or renovation project management, a strong understanding of timelines and budgeting, and leadership qualities.

To assess the fit of potential hires for your house flipping business, consider incorporating practical assessments into your hiring process, such as reviewing a contractor's previous work or discussing past sales successes with a real estate agent.

Look for candidates who demonstrate a genuine passion for real estate and renovation, as well as the ability to adapt to the dynamic nature of the housing market.

Finding candidates with the right background and passion for house flipping can be challenging.

Utilize trade schools, real estate networks, and social media platforms to reach potential candidates. Networking within local contractor communities and attending real estate events can also be effective strategies. Consider offering internships or apprenticeships to tap into emerging talent from trade programs.

Here is a summary table of the different job positions for your house flipping business, and the average gross salary in USD.

Running the operations of your house flipping enterprise

Daily operations.

Managing the day-to-day operations of your house flipping business can be streamlined with the right approach and tools. Efficiency is key to maximizing profits and minimizing the time properties sit on the market.

Firstly, utilizing project management software tailored for real estate investors can significantly enhance your efficiency. Look for a system that integrates project tracking, budget management, and contractor coordination. This integration allows you to monitor renovation progress, control costs, and ensure that everyone is on the same page.

Many project management tools also offer mobile access, which is crucial for house flippers who are often on-site or on the move. This feature enables you to update tasks, budgets, and timelines in real-time, directly from your phone or tablet.

For budget management, you want software that can track your expenses and compare them to your initial projections. The best systems allow you to set up alerts for budget overruns and provide reports on financial performance, helping you stay on track and make adjustments as needed.

Some budgeting tools also offer features like receipt scanning and categorization, which is essential for keeping accurate records for tax purposes and financial analysis.

As mentioned earlier in this article, building a reliable team of contractors and suppliers is crucial for a house flipper's success.

Establish clear communication channels and set expectations early on regarding project timelines, work quality, and payment terms. Building a good relationship can lead to more favorable rates and reliability. It's also wise to have a backup plan and maintain relationships with multiple contractors to ensure you can always meet your project timelines.

Keeping your team motivated and efficient is about creating a positive work environment and fostering a culture of accountability and excellence.

Regular check-ins, clear communication of goals and expectations, and constructive feedback can help in this regard. Recognizing and rewarding hard work and achievements also go a long way in keeping morale high. Ensure that contracts are fair and considerate of your contractors' schedules and other commitments.

Ensuring that every property flip is successful starts with thorough market research, a well-planned renovation, and strategic staging and marketing.

Train your team to be detail-oriented, quality-focused, and efficient. Encourage them to understand the target market and design renovations that appeal to potential buyers, making each property stand out.

Keeping the property clean and staged, with attractive curb appeal and an easy-to-navigate layout, also enhances its marketability.

Effective marketing strategies for a house flip might include professional photography, virtual tours, open houses, and leveraging online platforms to reach a wider audience.

Make it easy for potential buyers to get information, whether through your website, listing services, or direct contact. Respond to inquiries promptly and professionally, showing that you value their interest.

Handling buyer feedback and negotiations gracefully is critical. Always listen to the buyer's concerns fully before responding. Be willing to make reasonable concessions and offer solutions that can help close the deal, such as including certain appliances or offering a home warranty.

Use feedback as an opportunity to improve your operations, properties, or marketing strategies. Turning a negative comment into a positive change can often lead to a quicker sale and a better reputation in the industry.

Revenues and Margins

Know how much you can make.

Understanding the financial dynamics of house flipping is crucial for anyone in the real estate investment business.

We have a comprehensive guide on the profitability of house flipping that delves into the specifics. Below, we'll highlight some key points.

One of the primary metrics for house flippers is the average profit per flip. This figure represents the net income a flipper makes from buying, renovating, and selling a property.

The average profit can vary greatly depending on the location, property condition, and market trends. For a standard flip in a moderately active market, the profit range might be between $20,000 and $50,000 .

In hot real estate markets with high demand and rising property values, experienced flippers can see profits soaring above $100,000 per flip. However, these markets also come with higher investment risks and costs.

For flips in more rural or less active markets, profits are typically lower, often ranging between $15,000 and $30,000 , as the purchase prices and subsequent selling prices are generally lower.

Novice flippers might find their profits on the lower end as they navigate the learning curve, while seasoned professionals with established networks and efficient systems can consistently hit higher profit margins.

House flipping revenue can also be influenced by the type of property. For example, flipping luxury properties might offer higher individual profits but come with longer holding times and higher upfront costs, potentially reducing the overall return on investment.

Conversely, flipping lower-cost homes might result in quicker sales and lower profits per flip but can allow for a higher volume of flips annually.

Now, let's explore the various revenue streams a house flipper might have at their disposal.

House flipping is a multifaceted business, and while the sale of renovated properties is the core revenue stream, diversification can help stabilize income and maximize profits.

Understand your margins

As a house flipper, it's crucial to understand that the difference between the purchase price and the sale price of a property isn't pure profit. To truly gauge your earnings, you must consider the expenses and margins associated with flipping houses.

Let's delve into gross and net margins, which are key indicators of profitability in the house flipping business.

To calculate your own margins and get a precise figure of your potential profit, feel free to adjust the assumptions in our financial model designed for house flipping .

The typical range of gross margins for house flipping can be quite broad, often ranging from 10% to 30%.

Gross margin is determined by subtracting the cost of purchasing and renovating the property (including materials, labor, and any other direct costs) from the revenue generated from the sale of the property, dividing this number by the revenue, and then multiplying by 100 to get a percentage.

Net margins, however, account for not just the purchase and renovation costs but also all other expenses a house flipper incurs, such as financing costs, holding costs, real estate agent fees, and taxes. This figure is obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more complete picture of a house flipper's profitability and are typically lower than gross margins, with averages often ranging from 5% to 15%, reflecting the tighter profitability after all costs are considered.

Different types of house flipping—such as high-end residential, mid-market residential, and fixer-upper investments—can have varying profit margins due to differences in their market dynamics, renovation complexity, and investment strategies. Here is a table to illustrate these differences.

Margins in house flipping are significantly influenced by factors such as property location, renovation scope, and market conditions.

A well-chosen location can command higher sale prices but may also come with higher purchase costs. The scope of renovation is critical; extensive renovations can lead to higher profits but also carry more risk and upfront costs.

Market conditions are paramount; a strong real estate market can lead to quick sales and higher profits, while a downturn can result in longer holding times and reduced margins.

Ongoing expenses that impact house flipping margins include financing costs, which can vary based on loan terms and interest rates, and holding costs such as property taxes, insurance, and utilities. These costs accumulate the longer you hold onto a property, so time is of the essence in the flipping business.

House flippers focusing on niche markets, like eco-friendly renovations or historic homes, may see different margin dynamics compared to those flipping more standard properties.

While niche flips can attract a specific buyer willing to pay a premium, they also face higher renovation costs and potentially limited buyer pools, impacting overall margins.

External factors such as economic conditions, interest rates, and housing market trends also play a critical role in house flipping margins. Economic growth can increase buyer demand, while rising interest rates may cool the housing market.

The challenge of maintaining healthy margins in the face of fluctuating property prices and renovation costs is significant. House flippers can mitigate these challenges through careful property selection, efficient renovation management, and strategic pricing.

Regularly tracking and analyzing financial performance (good news - you can do all of that with our financial model tailored to house flipping ), including gross and net margins, is vital for ensuring the financial health and sustainability of your house flipping business.

Implement a strong marketing strategy

Marketing for a house flipping business can be streamlined and impactful without getting overly complicated. We understand that as a house flipper, you'll be immersed in renovations, market analysis, and property management. Therefore, we've crafted a straightforward marketing strategy that aligns with the insights from our business plan for house flipping .

Branding is just as essential for house flipping as it is for any other business.

Your brand represents your reputation and the quality of your work. It's not only your business name or logo, but also the transformation you bring to each property, your design style, and your commitment to revitalizing neighborhoods. A strong brand will differentiate you from competitors and help build trust with potential buyers and investors.

Begin your marketing plan by identifying your target market. Who are the potential buyers for your flipped houses? Are they first-time homebuyers, families looking for an upgrade, or perhaps investors seeking rental properties? Knowing your audience will shape your branding and marketing efforts.

For promotion, digital marketing is a powerful asset. Utilizing platforms like Instagram, Pinterest, and Facebook can showcase your before-and-after photos, virtual tours, and design aesthetics.

Offer insights into the renovation process, which adds authenticity and demonstrates the attention to detail and craftsmanship that goes into your work.

Collecting reviews and testimonials from previous buyers can establish credibility and entice new clients. Sharing home improvement tips or design trends can engage your audience and position you as an authority in real estate and home renovation.

Effective content strategies for house flippers include highlighting unique property features, successful transformations, and smart home upgrades. Collaborating with local real estate agents or staging professionals can also increase your visibility.

However, not all marketing tactics will suit your business model. For instance, if you're flipping houses in a specific region, focusing on that local market will be more beneficial than casting a wide net. Similarly, if you specialize in flipping historic homes, your marketing should emphasize restoration and period details rather than modern minimalist designs.

On a tight budget, there are clever methods to attract attention to your properties.

First, consider hosting open houses to engage directly with potential buyers and real estate agents. This not only showcases your property but also generates buzz in the community.

You can also create virtual tours or video walkthroughs to reach a broader audience online.

Networking with local contractors, suppliers, and real estate professionals can lead to referrals and partnerships.

Implementing a referral program can incentivize past buyers or industry contacts to recommend your services. Simple incentives or a commission-based structure can be quite effective.

Lastly, never underestimate the power of word-of-mouth marketing. Encourage satisfied clients to share their positive experiences, and consider offering a small token of appreciation for their referrals.

Grow and expand

We want you to thrive in your house flipping ventures. The insights provided here are intended to help you scale and expand your business effectively.

Imagine you're already a successful house flipper, with a portfolio of properties that have turned a good profit. Now, it's time to consider how you can take your business to the next level.

There's always potential for greater achievements, and we're here to show you the path to even more success.

Also, please note that we have a 3-year development plan tailored for house flipping in our business plan template .

Successful house flippers often possess qualities such as a keen eye for potential, negotiation skills, a solid understanding of real estate markets, and the ability to manage renovations effectively. These traits are essential as they work on expanding their flipping operations.

Before purchasing additional properties, consider the current real estate market trends, the potential return on investment, and how these acquisitions will fit into your overall strategy.

Market research is critical in this phase. By analyzing housing market data, understanding the needs of the community, and evaluating the performance of past flips, you can make informed decisions that align with your business goals and financial capabilities.

Evaluating the success of your current flips involves looking at profit margins, the speed of sales, and the efficiency of your renovation processes. If your properties are selling quickly and for a good profit, and your renovations are running smoothly, it may be time to consider scaling up.

Expanding your operations could mean flipping multiple houses simultaneously or moving into higher-value properties. This decision should be based on a clear understanding of your capacity to manage multiple projects and the financial health of your current operation.

Building a network of reliable contractors and suppliers is crucial as you scale. This ensures that you can maintain the quality and efficiency of your renovations as you take on more projects.

Developing a strong brand in the house flipping market can help attract investors and buyers. A consistent brand identity that communicates your commitment to quality and integrity can enhance your reputation and lead to more business opportunities.

Maintaining quality across all your flips is challenging but vital. This can be achieved through thorough project planning, detailed scopes of work, and consistent oversight of renovation projects.

Financial indicators that you're ready for expansion include a track record of profitable flips, a robust cash flow, and the ability to secure financing or investment for future projects.

Additionally, having a scalable business model and the operational capacity to manage growth is essential.

Partnerships with real estate agents, investors, and local businesses can provide new opportunities and resources for your house flipping business. These relationships can lead to early leads on properties and potential collaborations that benefit your business.

Scaling your operations to handle more or larger projects may require hiring additional staff, investing in project management software, or even opening an office to manage your business affairs.

Finally, it's crucial that your growth efforts remain aligned with your core values and long-term objectives. Expansion should not compromise the quality and integrity that have made your house flipping business successful.

Regularly revisiting your business plan and values can help ensure that your growth strategies stay true to your vision, allowing you to sustain the essence of your business as it expands.

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House Flipping Business Plan for First Time Filppers

Anyone can flip a house… but not everyone has a house flipping business plan that will ensure their flip is profitable. Whether you’re interested in flipping on the side, trying to flip full time, or you want to use home flipping as a gateway into real estate investment, it would be very helpful to know what will allow you to claim the most return on your investment — plus, where to get the money to fund the deal in the first place.

House flipping is not just a real estate deal. House flipping is not just a renovation. House flipping is not just an investment. 

It is all of the above and so much more. You may be strong in financing but lacking expertise in real estate and home renovation. Or maybe you’re strong in home renovation but lacking expertise in real estate and financial investment. Successful flipping dictates that you have a level of expertise in:

• Researching Opportunity
• Purchasing Real Estate
• Managing Finances
• Cost Effective Renovation
• Selling Real Estate

Again, anyone can show up and do these things, but only those who show up with a house flipping business plan that is built off of an expertise in all these areas will render the biggest profit (and avoid the biggest headaches). 

The house flipping business plan shared below will be a valuable roadmap as it will provide structure for the deal (from start to finish) and clarify the business deal strategy as a whole.

When creating a business plan for house flipping, you must carefully consider various factors that can impact the success of your venture. For example:

• Examples of successful business plans
• Financial projections
• Marketing strategies and tactics
• Project timelines
• Construction costs

Buying a home to live in is a risk in and of itself. However, in the end it’s a home you’ll live in and time can mitigate mistakes. Buying a home for the expressed purpose of turning a profit means you have much less margin for error, thereby, compounding the potential risks. If buying a primary residence requires foresight and planning, flipping a home for profit requires an exponentially greater amount of both. 

In the flipping business plan below we have put together a well-thought-out process for you to learn, adopt, and follow in order to increase your chances of a successful flip, which means, profits!

Other People Who Have Followed This Business Plan

This business plan for house flipping is not theory. It’s not conceptual. It is not just a collection of ‘good ideas’. 

What you are about to learn is the cornerstone approach that has allowed everyday men and women, average Americans, to profit $35,000, $55,000, even $100,000 on their first flip. 

If you’re looking for concrete evidence of a successful plan, you’re in the right place. 

Who are these people? You can meet them, hear their stories, learn about their experiences, and discover just how much profit they were able to generate with their flips. 

Home Flipping Success Stories

Blueprint Real Estate Guide to Growing Trends

You’re not blind — house flipping is a trend that has been trending upwards over the last couple decades. 

Truthfully, flipping houses has always been a legitimate real estate play but with the advent of home flipping and home renovation television shows, it has gone from a real estate play for heavy investors to a gateway into generating wealth in real estate. 

Even still, not everyone gets wealthy off of house flipping. Many people start off with deals that look promising but a lack of knowledge, experience, and expertise turns their dreams into a nightmare. 

In the first quarter of 2022, one in ten properties for sale was solely targeted for house flipping. In the year following that number has doubled.

If you want to know why the trend has gone from little known real estate deal, to entertainment novelty, to mainstream real estate investment opportunity, all you need to do is dip your toe into learning about the market condition, competition, and individual business practices that have developed over the last decade.  

Regardless of the current trends, one thing is true — real estate in any financial market can be incredibly lucrative and home flipping has proven to be the gateway deal into developing a strong real estate investment business.

Despite the growing trend, the market remains rich with opportunity and if you have a strong home flipping business plan you will purchase your property with a certain understanding of the market, a clear approach for the renovation process, and even possibly a mentor or flipping coach to help you navigate the ins and outs of the deal.

Real Estate Blueprint

The appeal of house-flipping as a blueprint for real estate investment comes from the potential for quick profits without long-term commitments. This is the phenomenon that reality TV shows have leaned into, leading anyone sitting on a couch at home watching a reality flipping show to think, “I could totally do that.”

Yes, you can! But can you do it for maximum profit? No. Not if you don’t have a proven plan to follow.

This is what makes a blueprint for flipping attractive. “If I had a proven plan that would tell me what to do, what to expect, and how to get the most for my money, I think I could pull this off.”

Now you’re thinking! 

And you do need to be thinking this way because flipping houses carries certain risks.

The process, especially the first time, can be demanding, time-consuming, and emotionally draining. When you are working harder than you’ve ever worked, putting in more hours than you’ve ever put in, and the ‘sold’ sign seems to be further and further away than you initially planned, it becomes apparent that you got into something more than you bargained for.

We want to avoid that and to do that, we need to get back to, “the proven plan.” Not a 20 minute television show. Not a YouTube channel. A real, practical and tactical plan that works wherever it’s tried.

This is what separates successful flippers from those trying to implement a combination of mimicking what they’ve done in their own personal residence and what they’ve seen on tv.

The truth about HGTV is that ordinary people can purchase, fix, and sell their property for profit. That’s absolutely true. But notice, they are usually paired up with a show host who is coaching them and leading them through the process. And this is exactly what you need.

Before embarking on your first house flip, ask yourself the following questions:

• What is the average cost of flipping a home?
• What considerations should you I keep in mind before flipping my first house?
• How can I make money flipping houses without using my own money as the startup capital?
• Is the fix-and-flip real estate market really profitable?
• How much knowledge do I need in real estate and construction?
• Where can I find the best property deals to flip?

You don’t know what you don’t know. Perhaps you see some of these questions and think, “Well why would I need to know that?” This underscores just how important it is to know what you’re getting into before you get into it and what you’re going to do once you are in.

A game plan. A blueprint. A framework. A roadmap. Call it whatever you want… in the end you’ll make more money if you go in with a plan you know works as opposed to figuring it out as you go.

There are ten items essential to your business plan:

• Cost analysis of house flipping
• Assessing the worth of house flipping
• Timeframe for house flipping
• Emphasizing the importance of timeline
• Experience required for house flipping
• Strategies for finding house to flip
• Where to spend your $10k when flipping
• How to overcome financial obstacles
• Duration of the house flip (start to finish)
• Techniques for finding ideal flip properties

We are going to provide you with the blueprint. You’ll be grateful for every word. But consider going further with Home Flipping Workshop to assist you in structuring your plan effectively to your market and timeline. You’ll be happy you have a business plan that provides valuable insights and templates to enhance planning and execution.

Funding A House Flipping Deal

How much money will you need to flip your first house?

Truthfully it’s not so much about ‘how much money’ you will need and it’s more about where are you going to get the money to fund your flip. 

You do not need and really should not use your own money as the bulk of your capital for the deal. You will need some money, several thousand dollars, but the majority of your funds should come from other people’s money (OPM).

Financing is often what scares people away from real estate. 

Either 1) they look at their own finances and think, “I don’t have enough money to get into real estate,” or 2) they are just scared of losing what money they do have doing something that is ‘risky.’

Your first move, before you do anything, is to explore the financing options available to you outside of your own savings. This is how the big time real estate investors do their deals and it’s exactly what you should do, too.

Here are options that we focus on when working with students during Home Flipping Workshop.

• Hard Money Lenders
• Private Investors
• Crowdfunding
• Joint Ventures
• Real Estate Syndication
• Real Estate Investment Trusts (REITs)
• Seller Financing
• Personal Funds and Equity
• Institutional Lenders

Maybe you see some of these options and think, “That looks risky,” or, “That’s seems scary to think about.” And you’re right… without a plan, without a pathway it is risky and it is scary. But you’re not going into this willy nilly. You’re not going to try and flip a house with zero experience in real estate, finances, or construction. 

You’re going to use a plan and your plan is going to be catered to your timeline… as such, you can look at each financing option and choose the option that gives you the greatest leverage. 

Maybe you can afford a hard money lender because your timeline is short. 

Maybe you have substantial equity in your home and can take out a loan (while it’s your equity, it’s the bank’s money).

Before you do anything you need to work out your funding.

Funding is a part of your overall finances and you need to be aware of all the costs that will go into your flip. There are obvious costs (purchase of the property, renovations, materials) and there are a lot of costs that you’d never even think of until you’re faced with the bill.

A part from the purchase price, you’ll need to take into account additional expenses including but not limited to: 

• Selling costs 
• Carrying costs 
• Insurance costs
• Renovation costs 

All of these costs will add up and as you determine your budget you will need to keep all of these potential expenses in mind. This is where having financial expertise and real estate expertise comes in really handy. Bottom line, get these numbers right in the beginning and you’ll have a stronger idea of how much you will stand to make in the end. 

While there is no one-size-fits-all formula to determine it all, partnering with a professional who has navigated this type of deal in the past will provide you with a stronger baseline. Whether you work with Home Flipping Workshop or you’ve already identified a party who will help you map out your these finances, the more prepared you are ahead of time, the stronger your leadership will be during the project, and the bigger profit you will stand to make.

As you identify potential properties you will be able to fill in your evaluation worksheet (and you can download our free real estate evaluator worksheet here ) and the numbers will come into focus.

Know How Much Will Your Flip Stand To Profit

“Is house flipping worth the cost?” It depends.

It absolutely can be worth the cost of time, money, and effort. 

“Is it worth it to you?”, is the correct question.

Why are you wanting to get into flipping? Are you trying to earn an extra $5,000 a month? Are you trying to pay off debt? Are you trying to replace a full time job? 

Are you trying to take a dream vacation? Are you trying to move to your dream location? Are you trying to build a dream house?

No matter what your reason for flipping is it will absolutely not be worth it if you end up making only a fraction of what you hope to. You need to know before you put the deal together that when you’re finished you will make at least the amount needed to fulfill your reason for flipping.

That said, if you know how to spot the right deal with the right potential, yes, flipping can be absolutely worth it… and more than that, predictable.

Think about that… PREDICTABLE.

Having command over your finances before you get into the deal a way to determine if a flip will be worth it before you get into the middle of the deal.  

We want your first flip to be incredibly profitable. But more than that, we want you to get through your second flip. Once you have flipped two homes you have, in effect, build a working knowledge of what it takes to succeed in real estate and you are now, in effect, ready to take on any type of real estate deal.

Home flipping is a gateway to real estate investment but it all starts with getting the finances straight.

Variable Costs of House Flipping

In your business plan, you need to account for the variable costs associated with house flipping. Here are some of the variables that can impact your costs:

• Property Acquisition : The cost of acquiring a property for flipping can vary widely based on location, market conditions, and property type. 
• Renovation and Repairs : The extent of renovations and repairs needed to make the property market-ready can significantly impact costs. 
• Labor and Contractors : The cost of labor and contractors can vary depending on the scope of work, location, and market conditions. Skilled tradespeople such as carpenters, electricians, plumbers, and painters will charge different rates, and these costs will contribute to the overall expenses.
• Materials and Supplies : The type and quality of materials and supplies used for renovations are crucial in costs. The prices of construction materials can fluctuate based on market conditions, availability, and the project’s specific requirements. 
• Holding Costs : Flipping property involves carrying costs during the renovation and selling. These costs include property taxes, insurance, utilities, loan interest payments, and maintenance expenses. The longer the property remains unsold, the higher the holding costs.
• Financing : The method of funding used for the project will impact the costs. Interest rates, loan origination fees, and other financing charges can vary depending on the chosen financing option, such as traditional mortgages, hard money loans, or personal funds.
• Marketing and Selling : Marketing and selling costs can vary depending on the strategies employed. Expenses may include professional photography, staging, advertising, real estate agent commissions, and closing costs.
• Market Conditions : The overall state of the real estate market, including supply and demand dynamics, can influence costs associated with housing flipping. In a competitive market, property acquisition costs may be higher, while market trends may influence selling prices.

You’re no stranger to fluctuations in the market. Not just the real estate market but the economy altogether. 

Consider the new homes that were sold in 2018 but weren’t set to be built until 2021. The cost of materials jumped so astronomically high that it made the housing prices that were agreed to in 2018 no longer viable and many people were unprepared for the true cost of their home when it was eventually built.

Your home flip won’t take 3 years but the example shows just how much things can change and we’re telling you this so you can build in the margin necessary. 

The housing market is subject to fluctuations, and an investor could end up with a property that takes longer to sell than expected. Or you might possess a property that sells for less than the cost of renovations.

Do the research. Understand the market. Build in margin. Establish a timeline to keep you on time and on budget.

How Long Does It Take to Flip A House? Establishing Your Timeline

Staying on budget is largely determined by establishing and keeping a project timeline. 

Not every home project will operate on the same timeline. Some jobs will take more time and some will take less. As you build your plan, one of the conversations you need to have with your coach or professional consultant will be, “What type of timeline can I afford?”

Some financing options will necessitate a shorter timeline. 

Some materials needed for a job will necessitate a longer timeline. 

So while we can’t give you an example timeline (to do so would not be responsible), having the conversation as you build your business plan is essential. 

Glenn & Amber Schworm, Co-Founders of Home Flipping Workshop, have flipped over 1,100 homes and in doing so have generated over $100 million in revenue. With that much water under the bridge, they have provided some general guidelines for timelines. You can expect your timelines to fall within these parameters. 

• 1 – 2 Months – To Find a Property
• 2 – 6 Months – To Renovate the Property
• 1 – 3 Months – To Market the Property
• 1 – 2 Months – To Sell the Property

Again, this is a very broad timeline that you can expect to operate off of. These are reasonable goals to set for each critical stage. For a beginner, completing a flip in one year is excellent. However, an experienced investor can flip a house in approximately 6-9 months.

If you have maintained any relationships over time you know how important communication is. Ordinary friendships, romantic relationships, and business partnerships all thrive on clear and precise communication. A project timeline provides the type of clear and precise communication you’ll need in order to stay on time and on budget. 

Consider everyone who will be relying on your timeline:

• Financing partners
• General contractor
• Real estate agents
• Business partners

Your timeline is the mouthpiece of your project. Everyone will refer to your project timeline to know if they are on schedule. They will refer to your project timeline to know when to expect the next phase to begin. They will refer to your project timeline to know how much time is available to work through obstacles. 

If you finish ahead of schedule, that typically means greater profit. If you finish behind schedule, that typically means greater losses. 

Reality TV makes it appear that a flip takes place in a week or two and even if they state the time that has passed, the nature of television still deceives the viewer of the true time. 

Home Flipping Workshop goes beyond stating what should be in your business plan, in this case a timeline, and helps you answer questions about the nature of your project to establish a reasonable timeline.

Don’t rely on the timelines you see on TV or the timelines you’ve heard from other people. Build your business plan based upon the particulars of your deal and your location. That is the only way you can plan your profit with any type of accuracy.

More Time Costs Lowers Your Home Flip Profit

Poor planning can ruin your house-flipping deal before it even begins. Everything you see in the shows — cost overruns and missed deadlines — those are realities you are going to potentially run into. This is why you plan vigilantly ahead of time.

Plan against some of the most common profit suckers:

Underestimating the Cost of Renovations

Do not guess at expenses. Get hard numbers. Get real quotes. Maybe in the future your working knowledge of past deals can inform some mental estimates — but not right now. You need to deal in certainties. 

Missing Deadlines

Remember above when we talked about deadlines being the communication everyone relies on? You must build margin into your deadlines and into the overall numbers. Nothing goes according to plan so plan on it costing more time than what you think. Add margin.

Overlooking Essential Details

Working with a coach, following a strict home flipping formula , or contracting professional consultants will hedge against this being an issue. If you go in solo you won’t know what you don’t know so count on missing key details and then having to pay for those errors.

Not Considering the Target Market

You need to know who buys in the area you’re flipping, what they’re looking for, what upgrades will render profits and what are overkill (killing your profit). Study the comps, decipher what is it about the highest comps that you could incorporate into your project that will render the highest return. Don’t build what you want… build what people are looking for (and can see themselves living in).

Failing to Budget for Contingencies

You know you need to do this. But we mention it because the flippers who have tried to do things on their own and inevitably come to Home Flipping Workshop… they thought they were doing this. There will be so many unexpected expenses but if you have a strong game plan on how you’re going to handle unexpected expenses… the expense will not longer be unexpected… you were prepared.

You’re going to have contracts, appraisals, inspections, negotiations and a whole litany of other time-consuming events in the process. Include all of this in your timeline so it works into your finances and doesn’t impact your profit. 

Considering all the factors, you need a lot of energy to get through the project. To meet your timeline, falling behind is not an option in flipping property. 

To avoid unwanted delays when flipping a house, consider the following seven steps:

• Plan: Create a detailed timeline of the entire project, including each task’s timeline, and allow plenty of time for unexpected issues to arise.
• Research local regulations: Familiarize yourself with local building codes, zoning laws, and permit requirements in advance.
• Hire reliable contractors: Work with experienced and dedicated contractors to ensure that the renovations are completed on time and with the desired quality.
• Be flexible: Be open to making changes to the plan as necessary and be prepared to adjust the timeline if unexpected issues arise.
• Stay organized: Maintain clear and detailed records of all expenses, deadlines, and progress updates to help keep the project on track.
• Keep the lines of communication open: Maintain open communication with all parties involved in the project, including contractors, real estate agents, and lenders, to ensure everyone is on the same page.
• Set realistic expectations: Be realistic about the timeline and costs involved in flipping a house, and be prepared to adjust the plan as needed to stay on track.

By taking these steps, you reduce the risk of unwanted delays and increase the chances of a successful and profitable house-flipping project.

Flipping A House With No Experience

If this is your first house flip, just because you don’t have experience doesn’t mean you can’t do it. You can ABSOLUTELY be successful and walk away with life changing sums of money. 

Thinking you have to be a real estate expert to make money in real estate is an error in thinking. 

Likewise, thinking you don’t need expertise or experience to flip and make a profit is unwise. 

You most certainly need expertise and experience if you want to walk away with the most money possible.

So how can this be?

You don’t need experience but you do need expertise and experience? Which is it?

In real estate you can borrow someone else’s experience and expertise! That means you can examine what they’ve done, follow the path they’ve charted, avoid the mistakes they’ve made, follow the same pathway that’s led to success and sell your home for a huge profit.

The top players in any sport have coaches. Take Tiger Woods! If you watch Tiger’s swing today versus when he burst on the scene in 1996 you’ll notice there are differences. Not only in his swing but his approach to the game. Why? Because he changed coaches over the years to improve. The best players have coaches.

You want to be an A player and that means you’re going to look for a coach to help make that happen!

So far we’ve talked much about the finances, the timeline, steps to getting started, and the obstacles to be aware of. We haven’t even touched on the legal side of your home flipping deal. 

Yes, legal should definitely be on your radar. You’re talking about borrowing money, employing contractors, buying real estate, and negotiating deals. What type of legal expertise do you need? Are there boilerplate agreements that exist which will hold up in court but don’t need to be drawn of from scratch? Is there a way to isolate my personal finances from the flipping arrangement? All good questions and all requiring answers you’ll need ahead of time. 

In addition to legal side of the business you need to be thinking about the operations side of the business. Flipping homes is a gateway into real estate investing and if you want to build a successful real estate investment business you need to think about everything a business owner thinks about.

• Setting a Budget
• Getting Referrals
• Creating Your Team
• Setting Up Your Business
• Finding the Right Property

“But I just want to flip a home. I’m not really interested in building a business.” 

This may be the case, but consider this.

First, the real money is not in flipping one home. The real money is flipping your second, third, fourth, and so on. If you’re going to put in all the work to learn the flipping business to quit after one home, well, that’s your prerogative, but what we have seen is that people get hooked and keep on.

Second, flipping and real estate in general is scalable. Meaning, if you feed it, it will grow. There is much that you’ll need to be involved in… but there is a A LOT that you can very easily hire someone else to do. 

You can hire a business manager. You can hire an operations manager. You can hire an office manager. You can hire a bookkeeper. You can hire every position that you don’t enjoy and leave the positions and work you love the most for yourself. If you try and do everything yourself you will find that the parts that you really don’t enjoy doing will consume your time and steal your joy for real estate. 

You don’t want this and we don’t want this for you.

You are going to become experienced in real estate really quickly. But not all experience is equal. In your early days, work with a coach, mentor, or consultant who can help you acquire the right experience. You’re going to spend the money on making mistakes or maximizing profit… it’s a lot less expensive to avoid the mistakes and focus on the profit.

What’s more, a good coach will not just walk you through what to do but they will actually educate you in the process so you won’t need them in the long term.

It’s True! No Experience Required In Home Flipping

What we have learned at Home Flipping Workshop over the last decade is that if you can flip two houses you have acquired the foundation for real estate investing success! Nearly every obstacle, negotiation, and challenge you overcome in flipping is a foreshadow of what you’ll need to be equipped to achieve success in real estate investment. 

It really is the perfect gateway to financial freedom.

You don’t need experience, you just need to work with people who are experienced. That is, of course, if you’re looking for the top return on your flip. 

This is no time for pride. This is the time for stepping back and saying to someone who has been where you’re going and achieved what you want to achieve, “Teach me.”

Experience provides several benefits, including:

• Improved skills and knowledge: Through experience, individuals learn from past actions and improve skills and understanding of a particular subject.
• Increased confidence: With experience comes a greater sense of confidence in one’s abilities.
• Better decision-making: Experience helps make informed and effective decisions by providing a more comprehensive range of perspectives and knowledge.
• New opportunities: Experience often leads to new and diverse professional and personal opportunities.
• Improved relationships: Experience can improve communication and interpersonal skills, leading to stronger relationships with others.
• Greater wisdom: With age and experience comes knowledge and a deeper understanding of the world.

On day one of your house flipping journey you’ll find yourself asking questions that you don’t know the answers to. Simple things like, “Is this a good property?” or “Is there something about this property that will cost a lot of money?” 

Again, you’re looking to buy a home to turn around and sell for a profit. Yes, if you were going to hold on to the property long term you could afford to have a few unknowns come to the surface over time. 

But not in a flip. 

You need certainty. You need predictability. 

While you don’t need experience, you need someone who is experienced to help you identify the money pit from the treasure in the field. 

People who don’t get the proper training to prepare before flipping a house can face several challenges, including:

• Overpaying for a property: Lack of market knowledge results in overpaying for a property, reducing the profit margin.
• Underestimating renovation costs: Not accurately estimating the cost of renovations results in cost overruns which eat into the profit margin.
• Missing Deadlines: Failure to plan for potential delays results in missed deadlines, causes the project to drag on, and increases holding costs.
• Legal issues: Not understanding zoning laws, building codes, and permit requirements results in legal problems and fines.
• Poor quality work: Hiring inexperienced or unreliable contractors results in poor quality work that requires redoing, adding to the project’s cost and delaying the completion timeline.
• Inability to sell: Not understanding the target market results in a flip that fails to sell or sells for less than expected.
• Financial loss: Not properly budgeting for contingencies and unexpected expenses results in a project that becomes unprofitable.

These are just a few challenges people need to prepare for before flipping a house. Planning carefully and considering all aspects of the project is essential to ensure a successful outcome.

The Home Flipping Workshop has an incredible strategy that works for most deals and includes follow-up support for more complicated deals. 

Starting any new journey causes you to learn more through self-education. To become an expert at flipping, start learning about the process, what you need, and what it takes. 

With no experience, having a mentor to guide you in flipping properties is beneficial. Flipping is a relationship-based business; the better you are at it, the more money you can make. 

Proceeding without experience can lead to poor decision-making, ineffectiveness, and preliminary results that produce no solutions. 

Experience provides a foundation of knowledge, skills, and insight that help individuals make informed choices, understand the consequences of their actions, and adjust their strategies as needed. 

Without experience, individuals are more likely to make mistakes, overlook important details, and struggle to achieve their goals. 

How to Find A House to Flip

In the beginning, shopping for a house is fun and exciting! Over time it begins to wear on you. If you make an offer here or an offer there and don’t get the house it becomes frustrating. 

House flipping and home buying shows will inspire you to get out there and get to work. But finding the right property typically proves to be a more ‘slow and steady’ affair. 

You must find the right home. Not just any home will do. Buy the wrong home and you’ll wind up working months for very little payoff. 

Here are some traits you want to consider. They will seem familiar, but truthfully, you’re buying a home that someone else will eventually want to buy. So of course some of the typical ‘real estate tropes’ will be true of your purpose.:

• Location: It significantly impacts value and desirability to potential buyers. Choosing a property in the most desirable neighborhood you can afford that has access to good schools, transportation, and amenities is essential.
• Condition: It impacts the work required to get it ready for sale. Properties that require extensive renovations may take longer to complete, resulting in higher costs.
• Profit potential: Choose a property that has the potential to generate a substantial profit after the completion of the renovations. Understanding the profit potential requires a thorough analysis of the market, the cost of renovations, and the estimated sales price.
• Cost: It must be in line with the budget and should not exceed the estimated sales price. Overpaying for a property can significantly reduce the profit potential.
• Competition: Consider the level of competition in the market and choose a property that can stand out from similar properties.

You need to develop a research and marketing analysis strategy. Whether you recruit a mentor or coach or decide to come up with your on strategy by trial and error, you need a framework to evaluate a home. You need to decide ahead of time what you are committed to buying before you start looking. This way you’ll be able to spot the winner from the losers. 

This is something you do when looking for your own primary residence. It has to have a pool. It has to have a single story. It needs to be near a good school. 

Why would you not set up these same parameters for your flip? You actually need more parameters because you will have limited money and limited time. Get this right.

Here are a few ways to find a property that will help you flip for a reasonable profit:

• Realtor.Com
• Trulia 
• Zillow 
• Wholesalers
• Mortgage Brokers
• Public Records
• Tax Records
• Court Records
• Investment Groups
• Google 
• Social Media
• Online Advertising
• Digital Classifieds
• Auction.Com

There is no substitute for diligently pursuing your perfect flipping property. The hungrier you are the better. The more diligent you are willing to be in your searching, the better. Everyone will see the homes that are easy to find. You need to figure out where the hidden gems are listed and how to get a look at them before everyone else. 

A coach will help you leverage all avenues to your advantage so you have an edge over the competition.

Off-market deals (deals found outside of the traditional real-estate market typically through wholesalers or sellers who have not yet listed with an agent and are looking for quick sale) are often seen as the best because they provide several advantages over traditional real estate transactions:

• Less Competition: Off-market deals are private, so there is typically less competition for these properties, making it easier for buyers to negotiate better prices and terms.
• Faster Closing Times: Off-market deals are often quicker to close because there is less paperwork, fewer inspections, and fewer parties involved.
• Higher Profit Potential: Off-market deals can often be purchased for less than market value, providing investors with the potential for higher profits.
• Better Relationships with Sellers: Off-market transactions often result in better relationships with sellers, as the parties involved in the transaction are not competing with other buyers.
• Reduced Risks Deals: Off-market deals have a lower risk of falling through because there is less competition and fewer contingencies, such as financing and inspections.
• Ability to Customize Deals: Off-market deals often provide the opportunity to customize deals to meet specific needs and goals, such as financing terms and renovation plans.

Keep your eyes open and be aware. Finding the best deals in this market is vital to your success. If a property is on Zillow, it requires research and evaluation. But those are only some of the listings that will equip you for success. Remember, off-market deals are the most lucrative. 

Separate yourself by finding those off-market deals known as “motivated sellers.” A motivated seller must sell because they want or need cash now. Look for the D’s:

• Desperation
• Downsizing 

The most significant D is desperation to sell. The Home Flipping Workshop will teach you how those sellers are not looking for top dollar, they want money quickly, and that is where you come in.

Off-market deals can provide several advantages over traditional real estate transactions, making them an attractive option for experienced investors looking to maximize profits and minimize risk.

Search listings for potential properties that are distressed and priced low – it’s the investment opportunity to look for when buying a property to flip.

Going through an agent or a broker makes your search faster because of their knowledge of properties that are priced low for flip deals, such as: 

• Eviction Properties
• Distressed Properties  
• Foreclosure Properties
• Mortgage Default Properties

A more promising method is by talking to a wholesaler. They find rehab properties, create a contract, and then find a buyer looking to flip that property. This is a win-win.

Auctions are another great way of finding a property to flip at a reasonable price, but they can be daunting. Paying with cash to offset any risks associated with an auction property is better.

There are so many more options to utilize to help you find a property to flip:

• Short Sales 
• REO Listing
• Direct to Seller
• MLS Database

The goal of a real estate investor is to find a low-priced property. The secret is in the investor’s ability to find a ‘diamond in the rough’ and fix, flip, and sell it for a profit.

Focus On Building Your Flipping Blueprint

Much of what we’ve covered is very straightforward and, in some sense, almost no-brainer information. 

But it’s essential. 

You can’t skip steps. You can take shortcuts (at least not in the beginning). You cannot afford to make a mistake — you’re trying to build something profitable.

As much as this process is a business development and real estate exercise it is also a personal development exercise, too. 

Your preparedness as a leader and high capacity individual will play a big role in whether or not you get the biggest return on your investment. 

If you embrace that this is a character building exercise as much as anything you’ll find yourself developing core strengths that will not only help you in real estate, but bring fulfillment in life overall. 

Here are some character traits we challenge Home Flipping Workshop students to embrace. 

• Avoid distractions: Laser-focused individuals effectively avoid distractions and maintain productivity by dedicating their attention to the task.
• Prioritize effectively: Laser-focused individuals prioritize their efforts and ensure the completion of the most critical tasks by focusing on one step at a time.
• Make more progress: By devoting their total energy and concentration to a single task, laser-focused individuals make significant progress in less time, leading to quicker project completion.
• Stay motivated: Concentrating on a single goal at a time helps individuals stay motivated as they witness their progress and results.
• Eliminate unnecessary activities: Laser-focused individuals efficiently eliminate time-wasting activities that do not contribute to their ultimate goal.

What is the difference between people who are at the top of their game and everyone else?

Laser-like focus in a single direction.

There is something powerful about being so focused on a very narrow scope of work. It not only blocks out the distraction of multi-tasking, you also elevate your ability to lead in a specific area. 

You are capable of so much greatness! Maybe you’ve never really thought about yourself as a leader or someone who is capable of greatness. But you are! 

Lasering in on your home flipping property could be the very think you need to replace generalist output for something sharp and powerful. 

Contactors, real estate agents, financial advisors, investors, and many others will be looking to you for leadership, communication, and motivation. Becoming laser-focused on buying the right property and flipping it for maximum profit will be a vibe that rubs off on everyone involved and as a result, you’ll get their best output.

How to Flip A House with $10,000

While it is true that you want to use other people’s money as much as possible to fund your deals, you do need to have some cash available to get into the flipping game. 

A great number to aim for is $10,000. 

While you can’t purchase a property outright with $10,000, you can actually do a lot more than you think. You can make it work in your real estate play in other ways.

• Use for a Down Payment
• Invest in an Airbnb
• Become an Investing Partner
• Become a Real Estate Wholesaler
• Get into Real Estate Crowdfunding

These methods could make $10,000 go a long way and quickly turn it into a recurring cash flow. 

Glenn and Amber Schworm have put together multiple plays that you could make with $10,000. Even when funds are limited, options still exist. Tapping into the experience, expertise, and relationships of other people is your secret weapon no matter how much money you have. It just so happens that if you’re short on money you can use those three items to make up a huge amount of the difference. You gain:

• Access to resources: Many available resources help you achieve your dreams, even with little money. There are many ways to gain the knowledge and skills you need to succeed, from online courses to free workshops and events.
• Creative solutions: Limited funds can often lead to creative solutions and innovative thinking. By working within a tight budget, you may find new and better ways to achieve your goals that you wouldn’t have discovered otherwise.
• Opportunities to network: Pursuing your dreams provides opportunities to network with others with similar interests and goals. These connections provide valuable support, guidance, and resources.
• Personal growth: Pursuing your dreams helps you grow and develop new skills, knowledge, and confidence.
• Fulfillment: Achieving your dreams brings a sense of pride and satisfaction that does not compare to material possessions or financial success alone.

Limited funds should not be a barrier to pursuing your dreams. With determination, creativity, and the right resources, anyone can achieve their goals, regardless of their financial situation.

Property flipping is a lucrative business, and having the finances to get in on the ground floor is not all about having cash.

Money Is Not An Obstacle

We’ve said it multiple times, but money should not be an obstacle. Don’t let money stop you from flipping a home. Yes, you’ll need to get creative, but creativity can win the day!

Experienced investors know that creativity overcomes a myriad of obstacles and there are many mechanisms that exist to help hungry and motivated entrepreneurs and investors get into the game no matter their net worth.

Some of the strategies that Home Flipping Workshop students leverage as a part of their business plan include:

• Partner with others: Joining forces with other investors or business partners can provide access to additional resources and help spread the risk.
• Be creative with financing: Experienced investors are often creative with financing, finding alternative sources of funding that may not be available to others, including crowdfunding, peer-to-peer lending, and using retirement funds.
• Build a network: Experienced investors often have a network of professionals, such as lawyers, accountants, and real estate agents, who can provide support and guidance.
• Utilize government programs: Experienced investors know government programs that provide financial assistance and incentives, such as grants and tax credits.

Experienced investors understand that money is just a minor obstacle to achieving their goals, and they have developed creative strategies to eliminate it as a barrier. These strategies allow investors to access the resources they need to succeed, even with limited funds.

Using other people’s money is a quick way to fund your property flipping deals, but you need to know whose money to use. It’s best if you have options.

The following nine options are the primary ways investors secure funds:

• Live-in Flip
• Wholesaling
• Home Equity
• Option to Buy
• Private Lenders
• Partner with an Investor

Many new investors need to be made aware of the funding opportunities available to them. 

It does not matter whether you are a new or a seasoned investor, utilizing the above factors is the best real estate strategy to get you started with no money in the market today.

Discover the Key to Flipping Houses

Perhaps you’ve always known you don’t want to fly blindly into your home flipping experience. 

Maybe you’ve skimmed through our plan article and decided that it would be worth exploring an educational experience like Home Flipping Workshop. 

Regardless of how you arrived at the decision to pay for training (versus paying for mistakes), you should be applauded. Home Flipping Workshop isn’t for everyone but the people who do go through it and commit to their home flipping dreams find that the key is following a proven plan.

In three days students learn the entire scope of home flipping success and take the principles covered in this article and actually are able to fill in many of the blanks with their only business plans. 

Imagine having a bulletproof method to invest in real estate without experience, money, or credit.

Glenn and Amber Schworm turned $80K of credit card debt into over $100 million in business earnings, and have crafted a formula for securing your economic freedom.

Join our intensive 3-day virtual Home Flipping Workshop where you’ll receive no-nonsense training that reveals:

• Insider secrets about wholesaling
• Long-term strategies for real estate investing through property ownership
• Techniques for building generational wealth by fixing and flipping houses

Seize this opportunity to fast-track your journey towards financial and time freedom. Thousands of ordinary people earn $40-100K per deal by flipping houses, and many do it using other people’s money.

With over 1,000 successfully flipped houses since 2007, Glenn and Amber Schworm are offering you their proven system on a silver platter.

At the Home Flipping Workshop, you will learn how to:

• Find lucrative properties in your local area
• Secure funding without relying on your own money or credit
• Confidently add value to deals through skillful renovations
• Utilize our foolproof formula to flip houses and generate substantial profits
• Capitalize on opportunities for recurring revenue by holding properties

Glenn emphasizes, “Our Home Flipping Workshop teaches you how to make money through buying and selling properties and accumulate wealth through homeownership.” It is the key to flipping houses. 

Real estate investing is not a one-size-fits-all endeavor. Glenn and Amber provide mentors and coaches to support students upon completing the course.

Our workshop also addresses common fears and provides professional development for aspiring entrepreneurs.

Attending the Home Flipping Workshop gives you a clearer vision of achieving overall success.

Use the Home Flipping Workshop content to learn proven techniques and gain valuable tips.

What is your dream for your life?

We often hear about living the dream, but how many achieve it? Don’t underestimate the power of your dreams. Instead of merely observing wealthy individuals driving fancy cars, living luxuriously, and traveling at will, strive to attain your personal dreams.

While celebrities earn significant amounts of money, they often require guidance to find their purpose. The Schworms share bulletproof strategies, based on their extensive experience in the real estate industry to help individuals make their dreams come true. 

With VestorPro, you can access a wealth of knowledge and expertise to guide you through the intricacies of real estate investing.

Contact VestorPro today to get started on your journey toward success. Their team of professionals is dedicated to providing personalized guidance and support tailored to your specific goals and aspirations. 

By reaching out to VestorPro, you can access a treasure trove of real estate blueprints that will serve as your roadmap to financial prosperity.

Don’t let uncertainty hold you back from achieving your dreams in the real estate industry. Take action now and contact VestorPro today. Their proven strategies and passion for empowering individuals make them the ideal partner on your path to success. 

Embrace the opportunity to learn from industry experts and turn your aspirations into reality with VestorPro’s real estate blueprints. Get in touch with them today and embark on a journey that will transform your life.

Home flipping is your gateway into real estate investment and true generational wealth, financial legacy, and personal freedom. 

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How to Start a House-Flipping Business in (2024)

Free House Flipping Business Plan Template

14 Min Read

You might have definitely thought of starting your own house flipping business after watching those HGTV shows. Especially, if you are someone who loves turning their design ideas into reality, house flipping is an exciting endeavor to undertake.

But hey, starting a house flipping business is a bit complicated. You need to figure out financial, logical, operational as well and legal aspects to buy, flip, rehab, and sell the property successfully.

Well, let’s address the complications and get you an answer to how to start a house flipping business in definite steps.

This detailed guide covers everything from market research to registration, marketing, and funding to start a business on solid foundational note.

Ready to get started? Let’s dive right in.

Steps to Start a House-Flipping Business

• House flipping market research
• Prepare your house flipping business plan
• Register your business
• Acquire essential licenses and permits
• Get required insurances
• Open a business bank account
• Fund your business
• Build your team
• Marketing and branding activities
• Buy, rehab, and sell the properties

1. House flipping market research

The foundation of any business builds on good quality market research. Collect as much ground-level and secondary data to form strategies, processes, and outlines for your house flipping business.

Begin by identifying the state of the house flipping market in your locality and the state. Determine if there is a scope for house flippers and demand for them. Also, is the market competitive in your area or supportive of new flipping businesses?

Further, elaborate your research by diving deep into your local market. Get in touch with realtors and agents to help you identify hotcakes in the property market. And don’t forget to check the legalities surrounding house-flipping businesses.

Here are a few things you can try answering to make your research comprehensive:

• What type of properties will you flip?
• How much are people willing to pay for a property?
• How much does a property cost in your target area?
• What amenities are desired by your target market in a property?
• What defines a good neighborhood while searching for property?
• What are some structural issues to check when buying a property?
• What type of renovation adds value to the property?
• What type of properties yield higher returns?

Gather data and information from national publications, and local sources and strengthen your networking in the real-estate market.

2. Prepare your house flipping business plan

Before starting the house flipping process, pause and invest your time in writing a comprehensive business plan.

A business plan helps you form business strategies specific to your house flipping business and offers a roadmap guiding you to achieve the desired milestones.

A well-defined plan accounts for all sorts of casualties and helps you stay put on the path by clearly defining your objectives. From how many projects you can take to how much funding you will require, your house-flipping process, and much more- it outlines every single detail.

Well, writing a stellar plan is a skill quite to master. However, here are a few details you must consider adding to your plan:

• Executive summary
• Company Overview
• Market analysis
• Operations plan
• Marketing Plan
• House-flipping team
• Financial plan.

Does this feel overwhelming? Well, this step-by-step guide to writing your house flipping business plan will make your plan writing process much easier.

Not very good at writing? Need help with your plan?

Write your business plan 10X faster with Upmetrics AI

Plans starting from $7/month

3. Register your business

Before you can officially start flipping houses, you need to register your business to make it legally compliant.

Select business entity

A business entity is the legal structure of your business. The chosen structure largely influences your liabilities, registration process, taxation, and other business aspects.

Now, flipping houses is induced to liabilities. So ideally an LLC (limited liability company) in partnership or corporation would make an apt choice.

Moreover, if you are planning to secure funding or get a loan, LLC is the most suited form of business structure.

Consider taking the opinion of legal counsel or a real estate agent to help you choose an ideal business structure.

Now, register your business after you finalize the name and DBA (Doing Business As) name of your business.

Apply for tax registration and get your EIN

Figure out the tax obligations applicable to your business and apply for tax registration with the state.

Also, get your EIN (Employer Identification Number) through an IRS (Internal Revenue System) portal. EIN is like a security number of your business that is essential while applying for business bank accounts and credit cards.

4. Acquire essential licenses and permits

Once the registration is completed, take further steps to ensure the overall compliance of your flipping houses business.

Identify the licenses and permits that will be required to operate your business legally. Now, depending on the scope of your operations and your area of work, you might require the following licenses:

• Real Estate License: Real Estate investor needs to acquire this license if they are going to engage themselves in the frequent purchase and sale of real estate properties.
• Contractor’s license: A contractor’s license is essential to undertake construction at any site. Ensure that the contractor on board with your house flipping business has his contractor’s license.
• Renovation permits: To undertake renovations and repairs at a real-estate site, get permits from local authorities sanctioning the same.
• Zoning and building permits: Get essential zoning permits and licenses for your office and the house-flipping sites.

You also need to check that you or your hired professionals have special trade licenses to undertake plumbing, HVAC, and electrical installation tasks.

5. Get required insurance

While lucrative profit margins portray the bright side of owning a house-flipping business, you need to prepare yourself for unpredictable mishaps, accidents, and lawsuits that are regular in the house-flipping industry.

Now, a homeowner policy isn’t sufficient when the liabilities surrounding the business are of high stake. It’s better to develop relations with brokers and insurance agents right from the beginning and get tailored policies for your business and the properties you flip.

Now, it’s upon you to wage in the importance of different policies, but here are a few areas you must get covered while starting your own house-flipping business.

General liability insurance

While it is essential to get general liability insurance, it is also favorable to have one. It’s general insurance that offers coverage against bodily injuries, property damage, legal, and medical payments, and much more. If there is one insurance you must definitely get, it is this one.

Worker’s compensation fund

Again a mandatory one for companies who will be hiring employees. In case of employee injuries and health issues, this fund will offer coverage.

Commercial property insurance

This policy will reimburse you for property and asset damage, equipment breakdown, and tools and electronics mishaps.

Commercial auto insurance

Get your business vehicles insured especially if they are involved in regular transport of heavy construction materials.

Insurance for properties you flip

House flippers must get a builder’s risk policy to get coverage for damage caused during renovations. And also vacant home insurance on properties that are yet to be sold.

Get basic coverage while you start a house-flipping business. As you expand in real estate investing and increase the scope of your operations, consider getting an umbrella insurance protecting your business from a variety of risks.

6. Open a business bank account

No matter how small the scale of operations, it is better to keep the accounts of your real estate business separate from your personal accounts. This will help you manage the business expenses and will ease the tax filing process.

House flipping businesses or any business for that matter, can open their business bank account using their EIN. At this stage, you can also apply for a credit card as an extra credit line for your business.

7. Fund your business

Like every other business, you need money to start a house flipping business. The question is how do you plan to get that money on board?

Well, most of all the house flippers who are just starting, really don’t have the equity or savings to get started. In such cases, different types of startup loans are your only solution.

Depending on the interest rates and your suitability, choose a financing option that caters to your needs.

Hard money loans

Hard money lenders won’t look at your credit score or personal and business credits. Hence, it’s easier to acquire these loans. However, they are extremely short-term and are available for higher interest rates.

Business line of credit

You can get a consistent line of credit, once you start your business. This line of credit can help you pay for the properties, renovations, and operating expenses. Again, certain loans won’t require a credit check. This is an ideal choice for house flippers who are slowly trying to establish their foothold in the market. The easy access to funds can help you seamlessly flow the operations.

Home equity loans and HELOCs

You can get a home equity loan or line of credit on home equity on your own home. With a low debt-to-income ratio and a good personal credit score, you become easily eligible for acquiring such loans.

401(K) Account

Another option for people who are not planning retirement anytime soon is to acquire a loan on their 401K funds. The risk is higher as you may end up losing your potential savings if the business fails. However, with proper planning and allocation, you can recover your 401K balance by flipping properties.

Friends and families

There is nothing better, you can acquire personal loans from your friends and family. It’s easier with the terms and repayment. However, if your relatives are investing in your business, it is ideal to get that in agreement as soon as possible.

If you are wondering about taking a bank loan, you might mostly not be eligible. Banks won’t give loans unless you can offer proof showing the profitability of your business over time.

You can use one of these financing methods or a combination of many to get adequate capital for your startup. Take some time to evaluate your choices and the pros and cons of each.

8. Build your team

After completing your legal registration and funding, you can start a house flipping business without any hindrances. However, you need a talented team of people to complete a successful flip project. It’s a perfect time to start looking out for people who can contribute to your house flipping business.

Now here are a few stakeholders and employees you will require to build a successful house flipping business:

• General contractor: A general contractor with demonstrable work and an extensive portfolio is a worthy investment for house flippers.
• Real estate attorney: These expert attorneys will look after legal aspects ensuring compliance with local laws. Moreover, they will look after making legal contracts for your real estate investment company.
• Handyperson: Will undertake smaller tasks to save you time and costs.
• Project manager: A skilled multitasker to oversee the completion of your house flipping projects.

Don’t make the mistake of doing everything on your own. While hiring people for your business venture may sound expensive, their expertise and skills will help you build a successful business comparatively sooner.

9. Marketing and branding activities

You need to work on upscaling the market value of your house flipping business. Branding and marketing are as important as defining your business operations after all, who will avail your services and products if people remain unaware of your existence?

First things first, define the branding elements of your business. This includes defining the type of properties you will flip and the location of those. Further, what type of design would your properties feature, and what would be your USP?

Further, dive into marketing to make your house flipping business recognizable amongst your target audience. Focus on simplicity instead of diving into the complex strategies right from the beginning.

Here are a few things that can help you generate new leads and market your existing house-flipping projects:

• Extensively market your newly flipped properties on social media channels, website, and through Emails.
• Create signboards and “for sale” boards with adequate contact information on flipped properties.
• Use print media to advertise your business of flipping houses and the flipped properties in the local area.
• Build a solid email marketing plan featuring your success stories, upcoming properties, new design elements, educational content, and much more.
• Offer a 360 view of your flipped properties to attract potential buyers.
• Network and collaborate with real estate investors, contractors, suppliers, legal counsel, and vendors to dive deep into the real estate market.
• Register yourself on platforms like Zillow, FSBO, and foreclosure to get in touch with house owners, real estate investors, and other house flippers. Strengthen your network and use these platforms to generate new leads for your business.

Experiment and assess different marketing strategies to find a suitable mix for your business.

10. Buy, rehab, and sell the properties

Once you determine the strategies of the house flipping business, you begin the cycle of buying, renovating, and selling the properties. The number of properties you flip at once depends on multiple aspects, however, having an understanding of the scale of your operation will help manage the resources optimally.

Once you find the property you like, the house flipping process goes as follows:

• Close the property after evaluating your financial standing and the lender’s terms. This takes anywhere from 15-45 days.
• Make renovation plans and start the work on it with a projected timeline.
• Market the property efficiently to your target audience.
• Get in touch with a real estate agent to get you buyers for the property. It’s ideal to close the sale as quickly as possible to get maximum returns.

Now, go ahead and get your hands on the first property and begin the fix and flip work on it.

That’s pretty much all the assorted information you need to start a house-flipping business. But let’s discuss a few common mistakes to avoid while you start this new venture.

Mistakes to avoid when starting a house flipping business

A lot of variables weigh in to write the success saga of your house flipping business. Well, you can consciously try to avoid these mistakes and increase the chances of your success:

Not building a strong team

Building a team can be costly, but not having a team is going to cost you more in terms of efficiency, project completion, and productivity. Don’t try to fit in multiple shoes while running a business.

Besides, don’t overestimate your capabilities. Get an experienced contractor on board to help you pick properties that can be flipped easily for a profit.

Not having a budget

Clearly define your financial capabilities before undertaking a renovation project. Overspending more than what the people would be willing to pay will result in losses.

Not making room for casualties

You have to be prepared for unexpected events and make room for them financially in your budget. Despite micro planning, things will go wrong, and having a calm demeanor can help you complete a flip successfully.

Not having an understanding of numbers

The success of a flip project lies in quickly closing a property, flipping it, and making a sale to maximize its ROI. Understanding costs, budget, profits, percentage returns, and other financial terms is essential to make a quick decision. If you fail to decide at a moment’s notice, you are likely to lose a stellar deal on properties.

Lastly, don’t try to spread your wings in every region all at once. Start with a locality, grow your business there, and then eventually start flipping properties in other regions and localities.

Ready to get started? Now that you are fairly aware of how to start a house flipping business, let’s take the first step and write a stellar business plan for your business.

A well-defined house flipping business plan acts as a roadmap guiding you to achieve your desired milestones and objectives. Source inspiration from sample business plans online and use them as a reference point to build your stellar plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks, AI-assistance, and automatic financials make it easy.

Frequently Asked Questions

How much money do you need to start a house-flipping business.

It takes anywhere between $20,000-$50,000 and more to flip one property at a time. However, these costs vary considerably depending on the location, size, concept, and legalities involved in starting a business.

Is flipping houses a profitable business?

Absolutely, yes. An average house flipper earns 10-20% profit on the sale of the flipped property after accounting for all the repairs and remodeling expenses. However, you need to be good with numbers and financing to pull in money from the right places.

How much does the average house flipper make?

An average house flipper can expect to earn anywhere between $64,500-$86,796 a year, flipping properties. However, you can increase your revenue potential by increasing your profit margins and flipping more properties than an average house flipper.

Is it possible to flip a house with $50k?

Absolutely, yes. $50,000 is more than enough to cover the downpayment of properties and renovations. You don’t need to look at the overall pricing of the property as the idea is to sell as soon as the flip is completed. If you manage to acquire financing of $50 K, you won’t be facing much difficulty running a business initially.

About the Author

Shyam Dua is a seasoned tax professional with 40+ years of experience & a mentor at SCORE. He stands out due to his exceptional business planning skills. With a keen eye for detail and a strong financial acumen, Shyam crafts compelling business plans that pave the way to success. A CPA with a philanthropic heart, Shyam's strategic expertise, and dedication make him an invaluable asset in shaping thriving business ventures. Read more

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Unleash Your Entrepreneurial Spirit: How to Start a House Flipping Business

If you've ever watched reality television shows like "Flip This House" and "Fixer Upper," then you've witnessed the thrill and profit potential of the house flipping industry. Many individuals are drawn to this exciting realm of real estate investing for both its monetary and psychological benefits.

Yet, starting a house flipping business involves more than just buying a property, adding a splash of paint, and reselling for profit. In this guide, we will walk you through the essential steps to starting a successful house-flipping business and the tools you'll need to make your business thrive.

Why Start a House Flipping Business?

The idea of flipping houses has a certain appeal to many. Firstly, you're investing in a tangible asset – real estate – and one that has the potential for significant ROI. Second, there's a sense of achievement in renovating a rundown property and changing its narrative. Lastly, house flipping can be the ticket to financial independence for those who hone the right skills and invest wisely.

Understanding House Flipping

House flipping simply refers to the process of buying properties at a lower price (typically because they are in need of repair), improving them, and then selling them for a profit. The concept of a real estate flip , thus, hinges on 'quick profit'. It’s a business strategy that requires research, funding, an understanding of property renovation, and a sharp sense of real estate market trends.

Becoming a house flipper doesn’t happen overnight. It takes time and careful planning. Here are the critical steps you will need to follow to establish your house-flipping business.

• Research: This involves understanding the real estate market , knowing your potential buyers, and learning about property values. You'll need to find neighborhoods that have high potential for growth and properties that are undervalued.
• Funding: Secure the necessary funds for your investment. This could be your personal savings, a bank loan, private lenders , or real estate crowdfunding platforms.
• Property Acquisition: After enough research and securing funds, the next step is to purchase your first property. This involves negotiating with the seller, doing a title search, and closing the deal.
• Renovation: Based on a predefined budget, renovate the property. Hiring a reliable contractor is essential. The extent of renovation depends on the condition of the property and can range from a fresh coat of paint to arranging a complete overhaul.
• Selling: Once the property is in shipshape, the final step is to sell it at a profitable price. You need effective marketing strategies to attract potential buyers.

Building Your Flipping Business

On the business side of a real estate flipping business, here are a few steps you can take in order to increase the probability of your success. Now if you are just getting started in real estate, some of these steps might better serve you in the future than where you are currently at in your journey.

Creating a Business Plan

A comprehensive business plan is your roadmap to success in the house-flipping industry. This crucial document should outline your business goals, target market, and competitive landscape. It can also forecast potential financial hurdles and operating costs. Then you'll be able to more strategically allocate your budget.

By setting clear, measurable objectives, your business plan serves as a foundation for decision-making and helps attract potential investors by showcasing your preparedness and strategic vision. Remember, a well-thought-out business plan reflects your commitment to the venture's success and helps you navigate the challenges of the real estate market.

Assembling a Qualified Team

No successful house-flipping business is a one-person show. Building a team of skilled professionals is paramount. Forge a relationship with a reliable real estate agent knowledgeable about local market trends and property values. Next, hire an experienced contractor who can execute renovations efficiently and cost-effectively. Legal advisors can help navigate property laws, zoning regulations, and contract specifics, while financial advisors or accountants can manage your venture’s profitability and tax compliance.

Each team member plays a pivotal role, contributing their expertise to avoid unforeseen pitfalls, ensuring each project aligns with industry standards and legal parameters, and ultimately securing your business's profitability and reputation.

Understanding and Managing Business Finances

Effective financial management goes beyond securing funds for your next project. It involves meticulous financial planning, from budgeting for renovations to contingency funds for unexpected expenses. Separate your business finances from personal accounts to streamline cash flow tracking and tax obligations.

Educate yourself on real estate investment tax implications and potential deductions. Reinvest profits to stimulate business growth, and consider various financing options to reduce dependency on traditional bank loans. By mastering financial management, you safeguard your business from common financial pitfalls, ensuring sustainable growth and profitability in the competitive house-flipping market.

Branding & Marketing Your Business

Establishing a robust brand identity for your house flipping business sets you apart in the saturated real estate market. Begin with a memorable business name and logo that resonate with your target audience.

Develop an online presence, including a professional website showcasing your portfolio, client testimonials, and contact information. Leverage social media platforms to share before-and-after images, renovation progress, and success stories.

Attend local real estate networking events and invest in digital marketing to enhance your visibility. Effective branding and strategic marketing not only build credibility but also attract potential investors and buyers, facilitating long-term success.

Legal Considerations and Compliance

Navigating the legal landscape is critical in house flipping. Ensure compliance with state regulations and local property laws, understanding that requirements can vary significantly by location. Obtain necessary permits before commencing renovations, and invest in appropriate insurance to protect against liabilities.

Consult with legal professionals to understand contract intricacies and safeguard your interests during property transactions. Stay informed about zoning laws, environmental regulations, and historical site considerations, as non-compliance can result in costly legal battles and fines. Proactively addressing legal considerations preserves your business's reputation, ensures smooth transaction processes, and fosters a sense of trust among investors and clients.

Learning from Failure – A Realistic Perspective

The reality of house flipping isn't as seamless as portrayed on TV. It's rife with challenges, from unexpected structural issues within properties to fluctuating real estate markets. Some shows do a good job highlighting this, others not so much.

Adopting a realistic perspective is key. Understand that not every flip is profitable and unforeseen complications are part of the learning curve. Analyze failures and near-misses as opportunities for growth: evaluate what went awry, revise your strategies, and fortify your approach. Connect with other real estate professionals to gain insights and advice, ensuring you're not isolated with your difficulties.

By maintaining resilience, continuously educating yourself, and adapting your strategies, you transform obstacles into stepping stones toward your ultimate goal of a successful, sustainable house-flipping business.

Risks Involved And How To Mitigate Them

It's essential to have a realistic understanding of flipping real estate risks. These can include unexpected renovation costs, difficulty selling the house, and market fluctuations. To mitigate these risks, conduct thorough research, budget responsibly, and always have a contingency plan.

Remember, house flipping is more than just a get-rich-quick scheme. It’s a business that requires diligence, patience, and strategic thinking. By understanding the basics of house flipping, arming yourself with the right tools, and navigating the risks involved, you're taking a solid first step towards becoming a successful real estate investor.

Embark on your journey towards starting a house flipping business today. Happy flipping!

About Samantha Ankney

Samantha has been a media specialist for DealMachine for 2.5 years. She produces, edits, writes, and publishes all media that is distributed to the DealMachine and Real Estate Investing community.

House Flipping Business Plan Template & Guidebook

Are you a new house flipper looking to succeed in the competitive real estate market? Downloading our The #1 House Flipping Business Plan Template & Guidebook is the first step towards making your home flipping dreams a reality. This guidebook provides everything you need to create an effective and comprehensive business plan, from developing your strategy and setting realistic goals, to financing and marketing your business. Find out how this essential tool can help you make smart decisions as you get started flipping houses.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable House Flipping Business [11 Steps]
• 25 Catchy House Flipping Business Names:
• List of the Best Marketing Ideas For Your House Flipping Business:

How to Write a House Flipping Business Plan in 7 Steps:

1. describe the purpose of your house flipping business..

The first step to writing your business plan is to describe the purpose of your house flipping business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a house flipping business:

Our mission is to acquire, renovate, and resell homes in a way that maximizes profit while preserving and adding value to the local community.

2. Products & Services Offered by Your House Flipping Business.

The next step is to outline your products and services for your house flipping business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your house flipping business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your house flipping business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your house flipping business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a house flipping business?

• Tools - Hammer, basic carpenter tools, sander, saws, levels, etc.
• Supplies - Paint, paint brushes, drop cloths, tarps, wood glue, wood screws, nails, etc.
• Permits - Depending on your city or state you may need to obtain permits for plumbing and electrical work.

5. Management & Organization of Your House Flipping Business.

The second part of your house flipping business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your house flipping business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. House Flipping Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a house flipping business varies based on many different variables, but below are a few different types of startup costs for a house flipping business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your house flipping business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your house flipping business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your house flipping business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About House Flipping Business Plans:

Why do you need a business plan for a house flipping business.

A business plan is essential for a house flipping business because it will help you determine your goals, create an action plan for achieving those goals, assess the feasibility of the project, and project your expected profits. It will also help you secure necessary financing from lenders, investors, and other sources. A business plan can be used to track progress during the course of the project and make adjustments as needed. Finally, it will ensure that all stakeholders are on the same page with regards to expectations and strategy.

Who should you ask for help with your house flipping business plan?

You should ask a business consultant, accountant, lawyer and/or real estate agent for help with your house flipping business plan. Additionally, you can consult with local government resources such as the Small Business Administration or your local Chamber of Commerce to find resources and support for starting your business.

Can you write a house flipping business plan yourself?

Yes, it is possible to write a house flipping business plan yourself, provided you have the necessary skills and knowledge. The plan should include detailed research into the real estate market, projected expenses and revenue, marketing strategies and a timeline for completion. Additionally, you will need to include financials such as an income statement, balance sheet and cash flow statement. If you're not sure where to start, there are many resources available online with templates and information on how to put together a business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Home » Sample Business Plans » Real Estate

How to Write a House Flipping Business Plan [Sample Template]

Are you about starting a house flipping business? If YES, here is a complete sample house flipping business plan template & feasibility study you can use for FREE . If you are looking to start a house flipping business and do not know how to go about it, then you have got to be sure of the source of information you have.

The internet is a very good place to do just that. After you have passed that stage, the nest thing would be to check out the options you have and follow it through. Also, chief amongst the steps that you will need to take is writing a business plan

A Sample House Flipping Business Plan Template

1. industry overview.

The real estate industry is one of the many industries that is a major contributor to the growth of the economy of many nations of the world and house flipping is one of the many businesses in the value chain of the real estate industry.

As a matter of fact, a real estate agent (flipper) who is engaged in house flipping business can actually become a millionaire ‘overnight’ from just one house flipping deal. Little wonder the industry is responsible for making many instant millionaires in the united states of America, as well as the rest of the world.

House flipping is all about purchasing a property that is put up of sale, renovating the property and then resell the property with the sole aim of making property. Usually, house flippers sell the home at a price that will cover both all the expenses incurred and provide enough profit to compensate for the time invested in the deal.

The profit could be big and it could be smack; it all depends on the how good you are able to makeover the property and also the location of the property.

The Bureau of Labor Statistics (united states of America) projects 11.1 percent job growth for real estate industry between 2012 and 2022, which is about as fast as average. During that time, an additional 38,000 jobs will open up in the industry.

Statistics has it that house flippers in the United States of America flipped about 156,862 single-family homes in 2013 alone. It is on record that the number of house that was flipped was up 16 percent from 2012 and 114 percent from 2011. Generally, the average gross profit for a completed house flip deal or more accurately, the difference between the first sales price and the second sales price is about $58,081.

The real estate industry is highly regulated in the United States of America and anyone who aspires to become a house flipper or start a real estate agency (company) must apply and obtain a license before they can legally operate in the industry.

But as a lawyer, you can handle real estate deals in some states in the US and make your commission without operating as a licensed real estate agent. In order to obtain a license as a real estate agent in the US, you are required to write and pass your state’s real estate exams.

The practice in the United States of America is that, a house flipper or real estate licensed agent is required to disclose to prospective buyers and sellers the nature of their relationship within the transaction and with the parties involved in the deal.

Just like all other investment vehicle, there are potential down sides that you need to look out for as a house flipper. One of the major risks in house flipping businesses is a sudden down turn in the economy. Selling properties could take a period of two to three years from conception to completion depending on the size of the project and the cash flow.

As a matter of fact, some projects could even take much longer than that. Because of the time frame involved in renovating a property from start to finish, loads of un–anticipated things could crop up and it fall in the thick of property cum economy downturn which is not good for the business considering the investment that has gone into the project.

Another factor that is of major concerns and a threat to house flipping business generally could be cost increase as a result of inflation, currency devaluation and economic challenges. Unforeseen delays from the part of government agencies, litigation and also delays from contractors could lead to substantial cost increase especially if the project is heavily dependent on bank loans.

If perhaps during this period there is a change in the supply and demand dynamics of the property sector the project could be affected negatively.

As a house flipper, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to properties; you should be able to convert a slum into a beautiful city if indeed you want to become a major player in the real estate industry.

2. Executive Summary

Joyous Homes® House Flippers, LCC is a property development company that will major in house flipping. Our head office will be located in a standard office facility in 415 Madison Avenue New York, NY 10022, USA. Our aim of starting this house flipping business is to work in conjunction with the government of the United States of America to deliver affordable homes and properties to all class of people in the United States of America.

Although our Head Office will be located in New York City, but we will have our branch offices in major cities in all regions of the United States of America – within the first two years of operation we would have set up our offices in the following locations; Los Angeles, Florida, North Dakota, Boston, Dallas and Washington.

Joyous Homes® House Flippers, LCC is going to be a self-administered and a self-managed real estate investment trust (REIT). We will work towards becoming one of the largest house flipping companies in the United States of America with active presence in major cities.

When are quite aware that house flipping business requires huge capital base, which is why we have perfect plans for steady flow of cash from private investors who are interested in working with us. We can confidently say that we have a robust financial standing and we are ready to take on any opportunity that comes our way in the real estate industry.

As part of our plans to make our customers our number one priority and to become the leading house flipping company in the United States of America, we have perfected plans to secure highly sellable properties that can favorably compete with the best in the industry at an affordable and reasonable price that will guarantee that we make good profit.

Joyous Homes® House Flippers, LCC have overtime perfected plans that will help us to become a specialist in turning slums into beautiful cities and turning a run –down and dilapidated building into a master piece. And that hopefully will be our brand and signature.

Joyous Homes® House Flippers, LCC will be owned majorly the Mrs. Joyce Sinclair and family. Joyce Sinclair is a property guru that has worked with top Real Estate Companies in the United States of America for many years prior to starting her own business.

Other investors with same investment ideology whose name cannot be mentioned here for obvious reasons are going to be part of the business especially as it relates to pooling cash together for property acquisitions and renovations.

3. Our Products and Services

Joyous Homes® House Flippers, LCC is set to run a standard and thriving house flipping business within the scope of the real estate industry in the United States of America. Our intention of starting a house flipping business is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offering are listed below;

• Exchanging property / House Flipping (Our Core Business Offering)
• Facilitating a Purchase — guiding a buyer through the process.
• Property Management
• Auctioning property
• Preparing contracts and leases.
• Lists the property for sale to the public
• Provides the seller with a real property condition disclosure (if required by law) and other necessary forms.
• Holds an open house to show the property
• Ensures that buyers are pre-screened and financially qualified to buy the property
• Selling of Fully Furnished Properties
• Selling of Landed Properties
• Real Estate Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our vision is to become one of the top 15 house flipping companies in the United States of America with the first 10 years of starting Joyous Homes® House Flippers, LCC.
• Our mission and values are to help people, businesses and property owners and clients in the United States of America and throughout the world realize their dreams of owning properties, or renting properties in the United States of America.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the real estate industry, as a matter of priority, we have decided to create a structure that will allow for easy growth for all our employees and also we have created platforms that will enable us attract some of the best hands in the industry.

Joyous Homes® House Flippers, LCC is fully aware of the modus operandi in the real estate industry, hence adequate provision and competitive packages has been prepared for independent sales agents. Our marketing department will be responsible for managing this aspect of our business structure.

Below is the business structure of Joyous Homes® House Flippers, LCC;

• Chief Executive Officer

Project Manager

• Company’s Lawyer / Secretary

Admin and HR Manager

• Head of Construction
• Head of Assets Management
• Head of Acquisition and Disposition
• Business Developer / Sales and Marketing
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervise projects
• Ensure compliance during project executions
• Providing advice on the management of projects
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represent the organization’s interest at various stakeholders meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.

Company’s Lawyer / Secretary / Legal Counsel

• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial / securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develop company policy and position on legal issues
• Research, anticipate and guard company against legal risks
• Represent company in legal proceedings (administrative boards, court trials et al)
• Play a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Head, Acquisitions and Dispositions

• Manages overall acquisitions and dispositions
• Identifies and analyzes acquisition opportunities; negotiates acquisitions.
• Responsible for identifying opportunities to acquire properties, possibly within a designated geographic region.
• Assists in the sourcing and acquisition of property for development; conducts market research; contacts brokers and owners about property acquisition opportunities; assists in negotiations with sellers and other parties.
• Identifies and analyzes disposition opportunities; negotiates dispositions.
• Responsible for identifying opportunities to dispose of properties, possibly within a designated geographic region.
• Assists in the disposition of property; conducts market research to determine the value of properties; contacts brokers and potential buyers; assists in structuring sales transactions and negotiations with buyers.

Head of Asset Management

• Oversees the company’s portfolio of real estate assets (which are owned and managed) through acquisitions, dispositions, and day‐to‐day operations, including management of revenue and expense items; works to maximize the portfolio’s performance.
• Provides strategic oversight of existing and potential real estate assets within a designated geographic area.
• Manages business plans and budgets for properties.
• Reviews the condition and maintenance of assigned properties; manages their bookkeeping and cash flow accounting; handles rent reconciliation; prepares property financial reports and annual budget forecasts.

Head of Renovations / Construction

• Establishes and enforces company’s engineering and construction standards
• Ensures that construction work meets or exceeds standards within a designated geographic area.
• Enforces and construction standards; ensures that construction work meets or exceeds standards within cost estimates; monitors quality of work in progress; supervises regional construction heads.
• Ensures that construction work in a particular product line, such as office buildings, meets or exceeds standards within cost estimates; provides technical input on the feasibility of proposed projects; monitors quality of construction work
• Provides overall direction on assigned construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.

Business Developer

• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
• Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Sales and Marketing Officer

• Markets space; finds tenants; participates in lease negotiations.
• Provides potential buyers with a real property condition disclosure (if required by law) and other necessary forms.
• Prepares necessary papers describing the property for advertising, pamphlets, open houses, etc.
• Holds an open house to show the property.
• Serves as a contact available to answer any questions about the property and schedule showing appointments.
• Ensures that buyers are pre-screened and financially qualified to buy the property. (Sellers should be aware that the underwriter for any real estate mortgage loan is the final say.)
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk / Customer’s Service Officer

• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distribute mails in the organization
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the line manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s properties that are put – up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

The fact that house flipping business is a very rewarding business does not mean that there are no challenges in the industry. Starting a house flipping business in the United States of America comes with its own challenges, you would have to abide by the law and also compete with loads of other entrepreneurs in the real estate business value chain who also are interested in making a living and building a business in the US.

In order to compete favorably in the real estate industry as a house flipping firm we have been able to hire the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis for us. We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Joyous Homes® House Flippers, LCC;

Some of our strength that we will be bringing to the table in the real estate industry is our robust relations with properties investment moguls in the whole of the United States of America, Our access to funding and also we have a team of experts who have cut their teeth in the industry. Our commission structure and relationship with freelance real estate agents in New York and other state in the US will also count towards our advantage.

As a newbie in the house flipping / real estate industry, we might have some challenges competing with big time property developers and other house flippers that have been in the industry for many years; that perhaps is part of our weakness.

• Opportunities:

The opportunities in the real estate industry especially as a house flipping firm is massive and we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a house flipping firm are unfavorable government policies, and global economic downturn; global economic downturn usually affect spending power and the real estate industry is known to encounter decline in sales and profits during this period. There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The market trend in the real estate industry or within house flippers is that, there are no fixed profits projections when engaging in a house flipping deal.

The profit you stand to gain as a house flipper depends on loads of factors amongst which are your attention to details, ability to turn a slum or a ransack facility into an edifice and knowing exactly when to buy over property, the kind of renovations to be done on the property and the right time to sell the property. If you are able to get all the above stated factors right as a house flippers, your gains will always be far more than your loss.

Another obvious trend that is common with house flippers in the United States of America is that most of them are improvising on more means of making money in the real estate industry and as matter of fact they are also acting as property developers amongst many other functions that they are involved in.

One thing is certain for every house flipper; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from all business deals that they are involved in.

8. Our Target Market

Our target market cuts across people of different class and people from all walks of life. We are coming into the real estate industry with a business concept that will enable us work with the highly placed people in the country and at the same with the lowly placed people who are only interested in putting a roof under their head at an affordable price.

Our target market is the whole of the United States of America and we have put plans in place to recruit freelance agents (brokers) nationally to represent our business interest wherever they are located in the United States of America.

Below is a list of the people and organizations that we have specifically design our products and services for;

• Families who are interested in acquiring a home
• Corporate organizations who are interested in acquiring their own property / properties
• Home Owners who are interested in selling off their home
• Properties Owners who are interested in selling off their properties
• Foreign investors who are interested in owning properties in the United States of America
• The government of the United States of America (Government contracts)
• Managers of public facilities

Our Competitive Advantage

Joyous Homes® House Flippers, LCC might be a new entrant into the real estate industry in the United States of America, but the management staffs and board members are considered gurus. They are people who are core professionals and licensed investors in the United States property market. These are part of what will count as a competitive advantage for us.

Another competitive advantage that we are bringing to the industry is the commission model (our commission structure). We know that freelance (licensed) brokers would work for the highest bidder which is why we designed a commission structure that will be a win – win for all parties involved in any deal undertaken by us.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Joyous Homes® House Flippers, LCC is established with the aim of maximizing profits in the real estate industry via acquiring houses / properties, renovating them and them selling off the houses. Although we are a house flipping firm, but part of our work force are also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Joyous Homes® House Flippers, LCC;

10. Sales Forecast

As long as there are people living in the United States of America, there will always be need to acquire properties or move into new homes et al. Businesses need facilities to operate from and families and individuals need shelters hence the demand for the services of house flippers to help them solve these needs.

We are well positioned to take on the challenges that are synonymous to house flippers in the United States, and we are quite optimistic that we will meet out set target of generating enough income / profits from the first month or operations and grow the business beyond New York to other states in the United States of America within record time.

We have been able to critically examine the real estate market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions;

Below is the sales projection for Joyous Homes® House Flippers, LCC, it is based on the location of our business consulting firm and the wide range of consulting services that we will be offering;

• First Year-: $1,000,000
• Second Year-: $3,000,000
• Third Year-: $7,000,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same additional services as we do within the locations where we have a strong business presence. Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the real estate market in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but also all our freelance brokers that are scattered all over the United States of America.

Our goal is to become one of the top 15 leading house flipping company in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force in the industry.

Joyous Homes® House Flippers, LCC is set to make use of the following marketing and sales strategies;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the real estate industry and also property owners and potential clients through the United States of America
• Promptness in bidding for acquiring homes / properties that are put up for sale
• Advertise our business in real estate / properties magazines and websites
• List our business on yellow pages (local directories)
• Attend real estate related expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to successfully sell our homes / properties to them
• Leverage on the internet (social media platforms)       and our official website to promote our business
• Places highly visible “For Sale” sign on any property that we put up for sale
• Encourage word of mouth marketing especially when we have a home for sale.

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the real estate industry by storm which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise our house flipping business:

• Place adverts on both print and electronic media platforms
• Place our flexi banners with our company’s logo and contacts in every property we put up for sale
• Sponsor relevant TV shows so as to be able to communicate our brand and what we do
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
• Install our Bill Boards on strategic locations
• Distribute our fliers and handbills in targeted areas from time to time
• Attend landlord and residence association meetings with the aim of networking and introducing our business.
• Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al.

12. Our Pricing Strategy

Part of business strategy is to ensure that we work within the budget of our potential clients to sell excellent properties / houses to them. It is the practice in most parts of the world for properties to be valued by professionals based on the area the facility is located, the type of facility and other factors.

Since we are not directly in control of the pricing system in the real estate industry we can only abide by what is obtainable when it comes to pricing structure. But one thing is certain, we will ensure that our houses are topnotch, with standard facilities and they stand out in every environment where they are located.

• Payment Options

At Joyous Homes® House Flippers, LCC our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.

Real estate deals usually involves huge amount of money. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches and we will also pay our freelance sales agents (real estate brokers) with same platforms. Any agent who intend paying with cash will be directed to deposit the money into our corporate account and then present their payment tellers to us.

13. Startup Expenditure (Budget)

Starting a house flipping business is indeed capital intensive; hence an entrepreneur would have to pool cash together or welcome investors to partner with. Although it the capital needed to set up an office structure for such business might not be expensive, but the running capital of the business is always the real deal.

You would need huge capital base to be able to acquire houses / properties, renovate them, before putting them up for sale. Here are the areas we intend spending our start – up capital;

• The Total Fee for incorporating the Business in New York – $750.
• The budget for permits and license – $2,000
• Cost for hiring Consultant – $2,500.
• Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
• Cost for payment of rent for a suitable Office facility with enough space in New York City, New York for 12 month at $1.76 per square feet in the total amount of – $105,600.
• Cost for office remodeling (construction of racks and shelves) – $20,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The Cost of Launching our official Website – $600
• Operation / business running capital – $1,000,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from our research and feasibility studies, we will need about $1.5M (One Million One Five Hundred Thousand USD) to set up a house flipping company in New York City, New York, US.

Generating Funding / Startup Capital for Joyous Homes® House Flippers, LCC

Joyous Homes® House Flippers, LCC is majorly owned by Mrs. Joyce Sinclair and family, but they will welcome other investors in the real estate industry to partner with them. These are the areas Health Is Joyous Homes® Flippers intends to generate its start – up capital;

• Generate part of the start – up capital from personal savings
• Generate part of the start – up capital from investors (Business Partners)
• Apply for loan from my Bank

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factor are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Joyous Homes® House Flippers, LCC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our homes a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Joyous Homes® House Flippers, LCC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Renting of Office Facility in New York City, New York: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO / President and Business Partners: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

More on Real Estate

House Flipping Business Plan [Template + Example in 2024]

Whenever you start or run a business, including a house flipping business, you should develop a business plan. Usually, this kind of plan is used for finding new partners or securing funding. Additionally, it will make it easier for investors to invest. Furthermore, it makes others want to work with you and gives you credibility.

Developing a solid business plan is the key to starting a house-flipping business. Your business plan's quality makes it stand out, so make it great. It might seem daunting, but don't worry. You can prepare a business plan with our House Flipping template and example.

The template and example in this article will ensure your business plan contains everything you need. Furthermore, we'll discuss common concerns and questions about a house-flipping business plan.

Without further ado, let's get into it!

How to Write a House-Flipping Business Plan?

Every House Flipping business plan must have the following sections:

• Executive Summary
• Business Overview
• Products and Services
• Market Analysis
• Marketing Strategy
• Financial Planning
• Operations Plan
• Management Team

Now, let's discuss each section in detail together with examples.

1. Executive Summary

An executive summary should be the first part of your House Flipping business plan. The purpose of this section is to explain what your business provides and what you will discuss in the remainder of the document. As a result, this section should be included after everything else.

A practical executive summary will help you make an excellent first impression. The mission statement and services offered by the company are summarized here. You should also explain why you are starting your own business and your experiences.

Kindle House Flippers is a real estate development company specializing in house flipping. We will have our main office in Long Island, New York. With this house-flipping company, we aim to provide cheap homes and properties to all socioeconomic groups in the country through collaboration with the American government.

With our plan of securing highly marketable properties at an accessible and fair price, we can compete effectively with the top players in the sector. To prioritize our customers, we will turn a healthy revenue and grow into one of the world's largest house-flipping companies.

2. Business Overview

An overview of your house-flipping business can be found in the Business Overview section of a business plan. This section should include your company's structure, values, mission, and products or services.

With this information, you can demonstrate how competitive your business is and will be in the future. Several different names can refer to a business overview. The terms used to describe them are Company Descriptions, Company Summaries, and Company Profiles.

Kindle House Flippers is a real estate development company specializing in house flipping. This house-flipping business aims to provide cheap homes and properties to all socioeconomic classes in the US. The head office will be in a typical Long Island, NY, office building.

Even though our head office will be in New York City, we will have branch offices nationwide. We aim to open offices in North Carolina, Wisconsin, Texas, Arizona, and Seattle within two years of opening.

We will form a self-managed and self-administered real estate investment trust called Kindle House Flippers. We plan to rank among the biggest house-flipping companies in the country by establishing a strong presence in key cities.

3. Products and Services

The Product and Service Section is where you'll list all the products and services you offer (or both). As part of your presentation, you will also discuss how these products or services can be manufactured, sold, or delivered. Therefore, you'll want to assess the suppliers of your product, the costs of the product, and the market position of your product.

Kindle House Flippers plan to operate within the parameters of the American real estate market as a typical and successful house-flipping enterprise. The purpose of starting a house flipping company is to take advantage of the market, and we will take any measures allowed by US law to do so. The following is a list of our business offerings:

• Flipping houses / exchanging properties
• Guiding buyers through the purchase process
• Managing of properties
• Auctioning Properties
• Preparing Leases and Contracts
• Placing properties on the public sale list
• Preparing and providing all necessary forms and disclosures to the seller
• Organizing an open house to showcase the property
• Prescreening buyers and ensuring they are financially qualified
• Offering fully furnished properties for sale
• Land selling for development
• Advising and consulting related to real estate

4. Market Analysis

A House Flipping Business Plan includes a section called Market Analysis, which explains your target market for the business. If you want to know who your competitors are and who your potential customers are, then use this section of your business plan.

The following information should be included in this section:

• Competitive Analysis: Determine the potential competitors in your market
• Customer Analysis: Discover and measure the audience you want to reach
• Industry Analysis: Assess the general environment of the industry

Reaching people from all backgrounds is critical to us. Through our business approach, we can serve rich people and people just looking for a roof over their heads.

Our target market is the whole country, so we want independent agents (brokers) to represent us there. The leadership and board of Kindle Home Flippers are experienced in the US real estate market.

They are investors and experts in their fields. All of those things will give us a competitive edge.

5. Marketing Strategy

Your marketing strategy is the section of your business plan that tells you how you plan to reach your target audience. Companies use marketing strategies to convey their customers' key messages and value propositions. If you want to know how to reach your target market, what motivates them, and how you can make them want to buy your products, then you can state those in this section.

Our sales and marketing staff will be chosen based on their industry expertise, and they'll get frequent training to ensure they're ready for their goals.

It's for all of our independent brokers, who are more than just full-timers dispersed around the country.

Since one of our goals is to rank among the country's top 15 home flipping companies, we have methods to help us take advantage of the market.

Marketing and sales strategies for Kindle House Flippers include:

• Introduce our company to stakeholders in the real estate industry, property owners, and potential clients throughout the country with introductory letters accompanied by our brochures.
• Bidding on homes/properties that are posted for sale as soon as possible
• Publicize our business in real estate and property magazines and websites.
• Make our business available in local directories like the yellow pages.
• Make attendance at real estate trade shows, seminars, business fairs, etc.
• Develop different packages for different client categories to sell our homes/properties successfully
• Promote our business through our official website and social media platforms on the internet.
• Display a visible "For Sale" sign whenever we list a property for sale.
• Promote our properties through word of mouth, especially when they are for sale.

6. Financial Planning

Financial planning is the section of your business plan that tells you your business's goals and how you will achieve them. The purpose of a financial plan is to assist organizations and individuals in becoming financially prosperous at the end of the day.

Starting a house-flipping business takes a lot of money. As a result, entrepreneurs need to pool their money or find investors.

Putting up an office building for this kind of company may require little capital, but managing it usually does.

Buying homes or other properties, remodeling them, and then putting them on sale would require a lot of cash.

7. Operations Plan

The mission of your Operations Plan is to outline the plan for implementing the actionable steps that your team will take to reach your strategic goals to execute your operations plan. This section lists the responsibilities each department employee has daily, weekly, and monthly.

A company's devoted customers, workforce, investments, and organizational structure determine its success. If all these components are missing, a company will close quickly.

Kindle House Flippers want to build a company that can function without outside funding once it's up and running.

For now, we're willing to endure a smaller profit margin since we know that selling our houses for a little less than what's available on the market is one way to win clients' approval.

8. Management Team

Your business plan should include a section for your organization's Management Team, giving a detailed overview of the whole staff and everyone involved in the operation of your organization. Your House Flipping business's success depends significantly on your management team's effectiveness. Moreover, if you wish to demonstrate your company's growth potential, you will need to highlight the skills and experience of the key players in your organization.

Your team members and you must have direct experience with the industry you plan to target. Therefore, it is essential to emphasize to the interviewer the candidate's expertise and experience to gain their attention. Including any experience that will benefit your business is essential in this section.

Mrs. Karissa Strickland will own most of Kindle House Flippers. Before starting her own company, Karissa Strickland worked for renowned US real estate firms. However, the company will include other investors with the same investing philosophy when it comes to pooling money for real estate purchases and renovations.

Below is the management team of Kindle House Flippers ;

• Karissa Strickland - Chief Executive Officer
• Chaz Barker - Project Manager
• Landyn Santos - Company's Lawyer / Secretary
• Alyson Blair - Admin and HR Manager
• Mckayla Harrell - Head of Construction
• Yosef Sparks - Head of Assets Management
• Rylee Avila - Head of Acquisition and Disposition
• Kathleen Curtis - Business Developer / Sales and Marketing
• Trent Giles - Accountant
• Ernesto Buckley - Front Desk Officer

House Flipping Business Plan PDF

Do you want to download a House Flipping business plan example in PDF?

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House Flipping Business Plan FAQs

Below are some of the frequently asked questions you may have about House Flipping Business Plans:

What Is a House Flipping Business Plan?

Business plans come in various formats, and the House Flipping Business Plan is no exception to that rule. Business plans are essential documents that can help you attract investors, obtain funding, cooperate with other businesses, and provide detailed information about your business.

As you can see, the House Flipping business plan provides detailed information about the company, its operations, and its structure. In addition, this report contains the details you need to know about the operations' finances, marketing, and management throughout the entire report.

As much as possible, businesses should consider various factors before launching their businesses, such as the cost of starting up, market research, mission statements, and succession planning, among others. These things are stated clearly in a good business plan.

Why Is a House Flipping Business Plan Important?

When starting up a house-flipping business, it is imperative to have a business plan in place. This document outlines the goals of the company as well as the structure of the company in the form of a business plan. Furthermore, you can follow or change the project flow as needed since you will have a basic outline.

If you hire and train employees, seek investors, or adjust your pricing strategy, it would be helpful if you had a House Flipping business plan. As a result, you should make one regardless of whether your business has already been launched or if you are still in the process of launching it.

Is Owning a House Flipping Profitable?

Due to the constant demand for house flipping services, a business can always be profitable. Therefore, consider it if you plan to launch your own business shortly.

In any case, whether you provide your customer service or hire an outside service provider, you must provide a superior service level. Your house-flipping business's profitability will be significantly affected by how it is managed. As such, you should prioritize customer service above small things.

You must develop a business plan before you open or operate a house-flipping business. With the aid of a plan, you will be able to identify your strengths, your competitors, your goals, as well as your workflow. Additionally, if you are seeking funding, a solid business plan can help you secure grants or investors if you need some funding.

With the help of this template, you can create a House Flipping Business Plan in which all the necessary information and elements will be included. Then, following our examples, you can develop your business plan based on the ones we gave you.

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A couple that built wealth from 'live-in flips' shares 4 strategies they use to flip homes for a profit, including: Find the 'dumpy house in the great neighborhood'

• Carl and Mindy Jensen say they've profited about $1 million from seven 'live-in flips.'
• The key to a successful flip is to wait for the right deal: "You make your money when you buy."
• Specifically, they look to buy the most overlooked or undesirable home in a great neighborhood.

Carl and Mindy Jensen estimate that they've profited $1 million between their seven "live-in flips."

A live-in flip, unlike a traditional flip, is when you rehab the home to increase its market value while living there.

The Colorado-based couple prefers this strategy because it eliminates some of the risk that comes with traditional flipping.

"The beauty of this strategy is you need a place to live," Carl told Business Insider. "You'd be in a much riskier situation if you had bought a separate house that you need to flip as soon as possible because you're just pouring money into it, whereas we're just paying the mortgage on our primary house."

There are sacrifices that come with live-in flipping — since they're rehabbing the home while living there, they're essentially living in a construction zone — but it's a smart way to turn your primary home into an investment, especially if you have more time than capital.

The Jensens, who are generally shifting to more passive real estate investing strategies , shared the four tactics they've used over the past couple of decades to flip homes for a profit.

1. Wait for the right deal: 'You make your money when you buy'

A key to the Jensens' success has been waiting for a great deal rather than jumping on an OK deal.

"You make your money when you buy," said Mindy. "You don't want to get into a bidding war and overpay by 10, 20, $30,000. That could be your whole profit. There's always another house, so definitely don't fall in love with something."

It took about two years to find their current live-in flip, added Carl: "We probably saw 30 or 40 houses before we landed on it — before we found the right deal."

The "right deal" depends on the investor. For the Jensens, "I'd like to get such a good deal on the house that perhaps I could sell in a year and make money off it even if we didn't do anything to it," said Carl.

2. Buy the 'dumpy house in the great neighborhood'

Flipping properties is all about adding value — and it's difficult to do that if you buy the prettiest house on the block.

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"One thing that we have always focused on is finding that dumpy house in the great neighborhood," said Mindy. Chances are, it'll be overlooked by other homebuyers and you can score a deal.

That said, they're not looking to take on houses that have major structural issues, especially since they do most of the renovations themselves. Their sweet spot is a home that's 30 to 50 years old and in its original state; it'll likely be dated and have room for cosmetic improvements, but the mechanical systems and structure will be more modern.

"We're not doing big, big jobs. You don't want to be moving walls," said Carl. They're tackling renovations like flooring, swapping out a toilet, and painting cabinets. "It's all superficial work. It's making the ugly house look pretty."

Or, it's making an undesirable home more desirable. For example, the Jensens' current live-in flip has a pool. While that might be something buyers in Flordia are looking for, "pools are undesirable in Colorado," explained Carl. "So no one wanted this house, but it's in a great neighborhood, and it would be very easy to get rid of the pool."

Keep in mind the median home price in your market during your search process, added Mindy: "If you have a $500,000 neighborhood, you don't want to buy a $500,000 house and then turn it into a $750,000 house because people who are buying $750,000 houses want to live in a $750,000 neighborhood. Having the most expensive house in the neighborhood makes it harder to sell."

3. Know your rehab costs and DIY to improve your bottom line

It's essential to know what your rehab will cost before buying the property so you have a good idea of your expected return.

Of course, experience helps now that they're on their eighth flip. "We can ballpark based on our past experiences if it's going to be a 50, 75, or $100,000 rehab," said Mindy. As a rookie flipper, however, it's smart to overestimate the cost and timeline.

When it comes time to actually renovate the property, you have two choices: "You could hire contractors — and you better have some great connections, be pretty confident in them, and be sure of what it's going to cost — or you could do what we did, and that's doing almost all of the work yourself," said Carl.

If you buy a home with a good foundation, the renovations will be time-consuming but not necessarily hard.

"Anyone can learn how to do flooring. It's not that hard to swap out a toilet," he said. "You can go on YouTube and figure that out in a couple of minutes."

4. Do a 'live-in flip' to avoid capital gains tax

The Jensens prefer 'live-in flips' to traditional flips because it lowers their risk.

But it also allows them to sidestep capital gains tax on the sale of their properties , thanks to an IRS rule known as the Section 121 Exclusion. This lets taxpayers exclude up to $250,000 ($500,000 for a couple filing jointly) of the gain from the sale if they've used the home as a primary residence for at least two of the five years preceding the sale.

Since the Jensens live in the properties they flip, they can capitalize on the tax benefit.

Watch: Was Italy's $1 home scheme worth it?

• Main content

The Best Jobs In House Flipper 2

• Unlock more tools and skills with each job in House Flipper 2 to successfully renovate, build, and flip properties faster.
• Focus on completing various jobs to earn cash rewards, unlock essential tools, and valuable perks for your house flipping journey.
• Take on longer, high-paying gigs like "End to 'The Ugliest House'?" to accumulate enough capital for multiple property flips in House Flipper 2.

Email jobs are a great way to make a quick buck in House Flipper 2 . While flipping houses offer the best profits, players need initial funds to purchase and flip their first property. There are 24 jobs in House Flipper 2 , ranging from simple cleaning and unpacking boxes to more involved tasks like painting, building, and demolishing walls. Some jobs unlock essential tools, and players can earn valuable perks to help them complete tasks faster.

House Flipper 2: How to Make Money Fast

What's great is that players aren't required to complete every job House Flipper 2 . But while some focus on immediately flipping houses after earning enough, taking on jobs offers more than just cash rewards . The jobs below unlock all the tools in the game and give the players all the skills needed to build, renovate, and flip houses successfully.

So You Wanna Be A House Flipper?

Where it all begins.

The "So You Wanna Be a House Flipper?" job from Tom Marino introduces players to basic cleaning tasks. It's the very first job in House Flipper 2 , and it not only earns players the first paycheck but also familiarizes them with garbage pickup and cleaning stains and windows —two of the most common tasks in the game.

Finishing the job takes about five minutes and players can earn up to $2,113 at three stars. Note that House Flipper 2 allows players only to complete 70% of a job, but this will result in less money and only one star. There is also a hidden Bessie in the house; have fun finding it!

I Have A New Quest For You

More garbage disposal and unpacking.

In this job, players help Robert Pattern clean up piles of trash and lots of dirt to make the house spotless for their newly found companion. Being a small house, this job should be quick and easy. While there are no tools to unlock yet, players might get perk points for cleaning or collecting trash.

House Flipper 2: Best Perks, Ranked

Besides cleaning, players need to unpack several boxes and arrange items in the basement, including a TV and some video games. This job pays up to $2,989 for a three-star rating, and a hidden Bessie is waiting to be found in the garage.

Out With The Old!

Level up your cleaning game.

Commissioned by Emma Baker, the "Out with the Old!" quest unlocks a new vacuuming tool that makes picking up small debris much easier and faster. It's primarily a clean-up job, so players will still collect trash and remove mold and stains , but the payout is generous—up to $4,464 for three stars.

In addition to cleaning, there are many items to sell, including furniture and appliances. This means players can unlock a Flipper tool perk point! Cleaning the house should take between eight and 12 minutes, and there is a Bessie stashed somewhere behind some packed boxes.

Adding A Cafe To My Bookshop

No more boring walls.

"Adding a Cafe to My Bookshop" is one of the most exciting jobs in House Flipper 2 . Players set up a cafe inside a colorful and cozy beachside bookshop, and in addition to the satisfying experience, it comes with a hefty payout of $9,819 for three stars.

House Flipper 2: How to Use Wiring

The "Adding a Cafe to My Bookshop" quest unlocks the painting and wiring tools, allowing players to paint walls and connect more lights to increase the market value of their properties. This is one of the most important jobs in House Flipper 2. The painting and wiring tools are essential for renovating houses and are frequently used in subsequent jobs.

New Walls, New Me

Out with the paint, in with the wallpaper.

"Mark Pescini's 'New Walls, New Me' quest offers players an additional method to decorate walls and even floors. While the "Adding a Cafe to My Bookshop" quest unlocked the ability to paint walls, this job takes it to the next level.

The job pays up to $7,337. However, the real reason players shouldn't skip it is that it unlocks the Surface Finishes tool, allowing players to add wallpapers and tiles to walls and floors, providing even more design freedom.

Tiny House To Flip

First proper house flip.

While most early jobs focus on cleaning or fixing specific parts of a house, this quest allows players to "flip" their first property. The amazing and charming Tom Marino will still make most of the decisions, including the choice of paint and furniture to buy, but this is the best opportunity players have so far to put their house-flipping skills to the test.

Players do a full makeover on a beach property in Crayfish Coast, including cleaning, painting, replacing furniture, and installing wallpaper and tiles. While it does not unlock any tools, this quest has a hefty $25,910 check and a hidden Bessie collectible.

My Crew Is Moving Here

Put your renovation skills to the test.

A team of video content creators moving into a seaside house needs help with cleaning and renovations. The job does not unlock any tools, but it's one of the top-paying gigs in House Flipper 2 . It pays up to $29,972 for three stars and shouldn't take more than 30 minutes to complete.

The "My Crew Is Moving Here" quest offers a comprehensive challenge, from basic cleaning and garbage collection tasks to replacing furniture, painting, and installing new wallpapers. Players can also add more fun to the game by finding a hidden Bessie collectible .

A Floor Plan To Change

The final piece of the house flipping puzzle.

The "A Floor Plan to Change" quest is the first job in House Flipper 2 with building and demolishing walls. It unlocks the final set of tools in House Flipper 2 , allowing players to not only furnish houses but also transform floor plans entirely.

7 Most Realistic Building Games

Players finally swing the harmer to demolish walls and build more rooms. It's one of the longest email jobs in House Flipper 2 , but it pays generously. In addition to building walls, there are a lot of exciting tasks, including painting, wiring, and shopping.

End To “The Ugliest House”?

Biggest payday.

With all the tools now unlocked, the final must-do job in House Flipper 2 is to transform Crayfish Coast's ugliest house into a fun and presentable community center. The vast, unfinished property has lots of trash and stains to clean, but it also has interesting tasks like painting, wiring, building, and demolishing walls.

"End to “The Ugliest House”?" is the longest quest in the game but also offers the highest payout. For players looking to accumulate enough capital to buy multiple properties, this job is worth the effort.

House Flipper 2 is now available for PC and is coming to PlayStation 5 and Xbox Series X/S on March 21, 2024.

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