Flipping houses takes careful planning or else it can be a flop. Don’t miss a step with our flipping-a-house checklist. View the checklist here.
Before You Buy: Tasks to Check Off
House flipping is one of several ways an investor can participate in the real estate market. When you buy a house to flip, you’re buying with the goal of improving the property to sell for a profit. Fixing and flipping is a creative and engaging way for an investor to get the most out of their purchase. An effective house flip can be lucrative for the seller while creating a beautiful turnkey home for a buyer.
Before you buy a property, it’s important to understand the amount of work that needs to be done will vary from house to house. Some might need a little touch-up while others will need extensive rehabilitation. To maximize your investment, approach your project with a realistic and clear flipping-a-house checklist so you don’t squander resources and waste valuable time. Your tasks begin before you even buy the house:
Research the housing market: Compare listings, visit open houses, walk neighborhoods, review interest rates, and learn about sales prices. In a seller’s market, you’ll be more likely to increase your return on investment.
Set your budget: Based on your market research, set a budget. Calculate the amount you can invest in a purchase, what you can put into a renovation, and what profit is likely to result.
Obtain financing: Get pre-approved for financing so you’re realistic about your budget and are ready to jump on that golden housing opportunity.
Hire a Realtor: A qualified Realtor can help you navigate listings, find the right house, purchase negotiations, inspections, escrow, and closing.
After You Buy: Rehab a House Checklist
Congratulations on finding the right house. Now it’s time to get down to the fixing part of your flipping-a-house checklist. Here’s where to begin:
Create a renovation timeline: Know what work needs to be done, how much it’ll cost, and how long it’ll take. Any deviation from your timeline can result in reduced profits.
Hire a contractor: A qualified contractor is an essential part of your rehab a house checklist. They’ll coordinate your project, overseeing the down-and-dirty details of things like hiring sub-contractors, sourcing materials, and getting permits. You’ll still need to be hands-on, overseeing your project from start to finish.
Take before-and-after pictures: Chart the progress of your renovation. Pictures can help you stay on track. They can also be shown to potential buyers, demonstrating the scope of the work you’ve put in and the value they’ll receive in a purchase.
A Final Fix-and-Flip Checklist
You’ve done the work and it’s time to sell your house. Here’s how:
Stage the house: Staging helps buyers envision living in a house. Create cozy seating areas, dreamy bedrooms, and be sure the house smells good and is spotless. According to the National Association of Realtors, staging a house increases the sales price up to 20% on average.
Determine a listing price: Your real estate agent can help you set a list price that positions you to be competitive and realistic. Discuss marketing strategies with your agent to reach potential buyers.
Close escrow: Once the house is sold you can take your profits and start your next fix-and-flip project.
HomeVestors®: A Checklist for Growing Your Real Estate Business
HomeVestors is the leading real estate investment franchisor. We provide the tools and support needed to grow your real estate investment business and flip houses with confidence We’re the “We Buy Ugly Houses®” people, the largest home buyer in the U.S., turning ugly houses into beautiful opportunities for house flippers.
HomeVestors® has helped over 140,000 homeowners out of ugly situations, enabling them to move on with their lives. We rehab houses to sell to new buyers or hold onto them as rental properties. As a HomeVestors franchisee, your business will help people out of tough circumstances, and create opportunities for homebuyers and renters in your community.
If you want to break into the real estate market but don’t know where to begin, start with HomeVestors®. We’ll provide you with a checklist for growing your real estate business. Fill out and submit a franchise form today.