Untitled UI logotext

House Flipping Business Plan

sample business plan for flipping houses

  • Free Business Plan Download
  • Do you need a Formal Business Plan?
  • Why write a Business Plan?
  • Components of a Business Plan

Executive Summary

  • Organizational Structure and Team
  • Strategies and Processes
  • Company Goals
  • Keys to Success

Download Our House Flipping Business Plan Template

House Flipper

Reason # 1 To Map Out the Future of Your Business

Reason # 2 to create a plan of action, reason # 3 to set quantifiable revenue & profit goals, reason # 4 to get funding from business partners & lenders.

  • Organizational Structure, Team & Operations Plan
  • Business Systems & Processes
  • Business Goals & Strateges

House Flipper

Organizational Structure

Business entity & structure.

House Flipping Business Plan Structure

Talk About Yourself

Talk about your team.

House Flipping Business Plan Team

Business Strategies & Processes

Market strategy, targeting your ideal house flip, leads & acquisition strategies.

House Flipping Business Plan Leads and Acquisitions

Deal Due Diligence

House Flipping Business Plan Due Dligence

Project Management Strategies

House Flipping Business Plan Construction Management

Business Goals & Forecasts

3 to 5 year financial plan, project goals.

House Flipping Business 5 Year Outlook

Revenue Goals

Profit goals, keys to success and meeting your goals, project team/strategic hires, strategic partnerships/relationships, business systems, ready to take action.

Growthink logo white

House Flipping Business Plan Template

Written by Dave Lavinsky

House Flipping Business Plan

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

Business Plan Template & Guide For Small Businesses

PlanBuildr Logo

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.

financial projection sample for house flipping business

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

Cleaning Business Plan Template Mortgage Broker Business Plan Template

  • Coaching Team
  • Investor Tools
  • Student Success

Real Estate Investing Strategies

  • Real Estate Business
  • Real Estate Markets
  • Real Estate Financing
  • REITs & Stock Investing

11 Components Of A Successful House Flipping Business Plan

sample business plan for flipping houses

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.

house flipping business plan

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.

business plan for flipping houses

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.

Click the banner below to take a 90-minute online training class and get started learning how to invest in today’s real estate market!

sample business plan for flipping houses

What is an STR in Real Estate?

Wholetailing: a guide for real estate investors, what is chain of title in real estate investing, what is a real estate fund of funds (fof), reits vs real estate: which is the better investment, multi-family vs. single-family property investments: a comprehensive guide.

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

Gina Baker

REVIEWED BY: Gina Baker

Melanie Patterson

WRITTEN BY: Melanie Patterson

Download our Merchant Account Application Guide

sample business plan for flipping houses

Your Privacy is important to us.

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

Get the templates and resources you need as a landlord

Download our Landlord Handbook e-book

Real estate icon

  • 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:

FILE TO DOWNLOAD OR INTEGRATE

FREE House Flipping Business Plan Template

House Flipping Business Plan Template preview

Thank you for downloading!

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.

Section two of the IRS online application for an EIN.

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.

A bar chart and financial reporting in the Analytics and Reports dashboard.

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.

A Meetup.com directory of real estate investment groups.

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.

An example of a house flipping logo.

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

An example business card for investors, contractors, and house flippers.

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

A colorful website with a house, shown on mobile, tablet, laptop, and desktop.

Gmail business email account. (Source: Google Workspace )

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

An array of customizable Canva business card templates.

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.

The Colibri Real Estate platform showing how to navigate a course.

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

Melanie Patterson

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.

sample business plan for flipping houses

By downloading, you’ll automatically subscribe to our weekly newsletter.

Join Fit Small Business

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Select the newsletters you’re interested in below.

ZenBusinessPlans

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

  • Credit cards
  • View all credit cards
  • Banking guide
  • Loans guide
  • Insurance guide
  • Personal finance
  • View all personal finance
  • Small business
  • Small business guide
  • View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Start a House-Flipping Business: Your Essential Toolkit

Meredith Wood

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

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.

sample business plan for flipping houses

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.

ZenBusiness

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.

On a similar note...

One blue credit card on a flat surface with coins on both sides.

Rehab Financial | Private Money Lender

Business Plan Template

Free house flipping business plan template.

Are you confident about making smart financial decisions for your house flipping project? Create a clear path to success with our Free House Flipping Business Plan Template. Getting organized and creating a house flipping checklist can help you determine costs, project timelines, and help streamline the house flipping process. If you’re wondering how to get started flipping houses for a living, this template is a great starting point to create your business plan for flipping houses.

Complete the form on the right to subscribe to our email list. Once you subscribe, our free, editable business plan for flipping houses template will be sent directly to your inbox. This may be the most important part of your house flip — after all, you can’t build a house without a foundation, and starting a flipping business is no different!

Benefits of Writing a a Business Plan for Flipping Houses:

  • Create a clear overview of the project to get your team on the same page
  • Avoid disorganization
  • Predict challenges
  • Stay focused on your profits
  • Prepare impressive professional documents for lenders, contractors, and inspectors
  • Keep your project on track and stay ahead
  • Improve your chances of getting approved for a loan
  • Show partners that you’re serious

Request your Free House Flipping Business Plan Template today by filling in the form to the right and start flipping houses.

sample business plan for flipping houses

Free Business Plan Template

sample business plan for flipping houses

BusinessDojo

Item added to your cart

Here is a free business plan sample for a house flipping enterprise.

house flipper profitability

If the thrill of transforming a fixer-upper into a stunning home excites you, and you're eager to dive into the world of house flipping, you've landed on the perfect page.

In the content that follows, we will present you with a comprehensive sample business plan tailored for house flippers.

As an aspiring or seasoned house flipper, you're likely aware that a robust business plan is crucial for navigating the real estate market, securing financing, and outlining your approach to renovations and sales.

To streamline your planning process and set a solid foundation for your flipping endeavors, feel free to utilize our house flipping business plan template. Our team is also available to review and refine your plan at no cost.

business plan property flipper

How to draft a great business plan for your house flipping enterprise?

A good business plan for a house flipping business must be tailored to the unique challenges and opportunities of the real estate market.

To start, it's crucial to provide a comprehensive overview of the real estate market you're entering. This includes current housing market trends, property values, and growth projections, similar to what we've outlined in our house flipping business plan template .

Your business plan should clearly articulate your strategy. Define your target properties (such as distressed homes, foreclosures, or auction properties), your target market (first-time homebuyers, investors, or families), and your unique value proposition (renovation expertise, design innovation, or speed of turnaround).

Market analysis is a key component. You need to thoroughly understand the neighborhoods you're targeting, the types of properties in demand, and the preferences of potential buyers.

For a house flipper, it's essential to detail your property acquisition strategy. Explain how you will identify, assess, and purchase properties with potential for a high return on investment.

The operational plan should cover the renovation process, including timelines, contractors, materials sourcing, and project management. Highlight your approach to renovations, whether you're focusing on quick, cosmetic updates or extensive overhauls.

Quality control is paramount. Discuss how you will ensure that renovations enhance property value and meet all building codes and regulations.

Address your marketing and sales strategy. How will you market the renovated properties? Consider staging, open houses, real estate agents, online listings, and networking with potential buyers.

Incorporating digital strategies, such as a professional website showcasing before-and-after photos, or leveraging social media to build interest, is also important.

The financial section is critical. Include your budget for property acquisition, renovation costs, holding costs, and the projected sale price. Also, outline your sales forecasts, cash flow projections, and the break-even analysis.

For house flippers, understanding the cost of capital, timelines for renovation, and the real estate cycle are essential to ensure profitability. For this, you can refer to our financial forecast for house flipping .

Compared to other business plans, a house flipping plan requires a detailed risk management strategy, including market volatility, unexpected renovation costs, and changes in interest rates.

A well-crafted business plan will not only help you clarify your approach and strategy but also attract investors or secure loans.

Lenders and investors are looking for a solid understanding of the real estate market, realistic financial projections, and a clear plan for property renovation and sale.

By presenting a comprehensive and well-researched plan, you demonstrate your expertise and dedication to the success of your house flipping business.

To streamline the process and ensure you cover all necessary elements, consider using our house flipping business plan template .

business plan house flipping enterprise

A free example of business plan for a house flipping enterprise

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a house flipper .

Here, we will follow the same structure as in our business plan template.

business plan house flipping enterprise

Market Opportunity

Market data and figures.

The real estate market, particularly the house flipping sector, is a dynamic industry with significant investment potential.

Recent data indicates that the house flipping market in the United States is robust, with tens of thousands of houses being flipped each year. The total revenue generated from house flipping has been reported to be in the billions of dollars, showcasing the lucrative nature of this investment strategy.

Despite market fluctuations, real estate remains a cornerstone of the American economy, with house flipping contributing substantially to the industry's growth and offering opportunities for both small-scale and professional investors.

The house flipping industry is influenced by various trends that shape investment decisions and strategies.

One significant trend is the growing interest in sustainable and energy-efficient homes. Investors are increasingly renovating properties to include green features, which not only appeal to environmentally conscious buyers but can also provide long-term cost savings.

Another trend is the use of technology in real estate, with house flippers utilizing software to analyze market data, estimate renovation costs, and manage projects more efficiently.

Additionally, there is a shift towards modern and open interior designs, as well as smart home technology, which are becoming selling points for flipped properties.

Investors are also focusing on emerging neighborhoods and areas undergoing revitalization, where property values are expected to rise, providing a higher return on investment.

Lastly, the rise of real estate platforms and social media marketing has transformed how house flippers showcase and sell their renovated properties, reaching a wider audience and streamlining the sales process.

Success Factors

Several key elements contribute to the success of a house flipping business.

Firstly, a deep understanding of the real estate market is crucial. This includes knowledge of local property values, real estate laws, and market trends.

Access to capital is another critical factor, as house flipping requires significant upfront investment for property acquisition and renovations.

Expertise in renovation and construction allows flippers to create value through high-quality workmanship and cost-effective improvements.

Choosing the right property in a desirable location is also essential, as it can greatly influence the resale value and potential profit.

Efficient project management, including timely renovations and staying within budget, is vital for maximizing returns.

Finally, effective marketing and sales strategies are necessary to attract buyers and sell the flipped property at a competitive price.

The Project

Project presentation.

Our house flipping business is designed to revitalize neighborhoods and provide modern, updated living spaces for potential homeowners. By targeting undervalued properties in promising areas, we aim to renovate and transform them into attractive, functional homes. Our focus will be on properties that can benefit from cosmetic updates to full-scale renovations, ensuring each home meets current market demands and design trends.

We will leverage our expertise in real estate, construction, and interior design to enhance the value of each property, creating homes that are not only aesthetically pleasing but also structurally sound and energy-efficient.

Our house flipping business is committed to revitalizing communities and offering high-quality homes that new owners can take pride in.

Value Proposition

The value proposition of our house flipping business lies in our ability to transform neglected properties into desirable homes, thereby contributing to neighborhood improvement and providing value to both the community and our investors.

Our commitment to quality renovations, attention to detail, and adherence to budget and timelines ensures that we consistently deliver homes that are ready for the market and appealing to buyers.

We aim to set a standard for house flipping by not only focusing on profit but also on the positive impact our projects can have on the surrounding community, including increasing property values and enhancing the overall appeal of the area.

Project Owner

The project owner is an experienced real estate professional with a keen eye for potential and a passion for transformation. With a background in construction management and a strong network of skilled contractors, the owner is well-equipped to oversee all aspects of the house flipping process, from acquisition to renovation and sale.

With a commitment to integrity and sustainability, the owner is dedicated to selecting projects that not only yield a financial return but also contribute to the betterment of neighborhoods and the environment.

Driven by a vision to breathe new life into underappreciated properties, the project owner is the driving force behind this business, aiming to create beautiful, functional homes that new owners will cherish for years to come.

The Market Study

Target market.

The target market for a house flipping business is multifaceted and includes several key segments.

Firstly, there are potential homebuyers looking for move-in-ready homes that have been updated or renovated to modern standards.

Secondly, real estate investors seeking to add turnkey properties to their portfolios represent another segment.

Additionally, the market encompasses real estate agents who are always on the lookout for high-quality, renovated properties to present to their clients.

Lastly, the local community can also be a target market, as improved properties can enhance neighborhood appeal and property values.

SWOT Analysis

A SWOT analysis for a house flipping business might highlight the following:

Strengths could include a strong network of contractors, an eye for undervalued properties, and expertise in renovation and design.

Weaknesses might involve the dependency on housing market trends and the potential for unforeseen renovation costs.

Opportunities could arise from the current demand for housing, the potential for gentrification in certain areas, and the ability to leverage social media for marketing.

Threats may include an increase in property prices, competition from other flippers and large-scale developers, and changes in interest rates affecting buyers' purchasing power.

Competitor Analysis

Competitor analysis for a house flipping business reveals a varied landscape.

Direct competitors include other local house flippers, real estate investment companies, and sometimes, homeowners themselves trying to sell as-is properties.

These competitors are vying for the best purchase deals on properties and the attention of potential buyers.

Competitive advantages might include a quicker turnaround time, superior craftsmanship, and a strong brand reputation for quality renovations.

Understanding the strengths and weaknesses of these competitors is crucial for carving out a niche and ensuring a quick sale of flipped properties.

Competitive Advantages

Our house flipping business stands out due to our meticulous attention to detail and commitment to quality renovations.

We specialize in transforming outdated properties into desirable homes with modern amenities and design aesthetics.

Our strategic approach to selecting properties in up-and-coming neighborhoods allows us to maximize return on investment while contributing to community revitalization.

Moreover, our efficiency in project management and strong relationships with skilled contractors enable us to complete projects on time and within budget, passing on the savings to our buyers.

You can also read our articles about: - how to start a house flipping enterprise: a complete guide - the customer segments of a house flipping enterprise - the competition study for a house flipping enterprise

The Strategy

Development plan.

Our three-year development plan for the house flipping business is designed to establish a strong foothold in the real estate market.

In the first year, we will concentrate on acquiring undervalued properties in promising neighborhoods, focusing on homes that require moderate renovations to maximize efficiency and return on investment.

The second year will be geared towards expanding our operations by increasing the volume of flips and exploring new markets with high growth potential.

In the third year, we aim to diversify our portfolio by including rental properties and possibly commercial real estate to ensure a balanced and resilient business model.

Throughout this period, we will prioritize meticulous market research, cost-effective renovation practices, and strategic sales efforts to optimize profitability and establish our reputation in the industry.

Business Model Canvas

The Business Model Canvas for our house flipping business targets individuals and families seeking move-in-ready homes as well as real estate investors looking for turnkey properties.

Our value proposition is centered on providing fully renovated homes that meet modern standards and tastes, with a focus on delivering quality and value to our customers.

We acquire properties through various channels, including auctions, estate sales, and direct purchases, leveraging our key resources such as our skilled renovation team and real estate network.

Key activities include property acquisition, renovation planning, project management, and sales.

Our revenue streams are generated from the sale of renovated properties, and our costs are primarily related to property acquisition, renovation materials, labor, and marketing.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is focused on showcasing the transformation and quality of our flipped properties.

We aim to attract potential buyers through before-and-after visuals, open houses, and staging that highlights the property's potential. Our approach includes targeted online advertising, real estate listings, and networking with local agents.

We will also develop relationships with real estate investors and wholesalers to create a steady pipeline of potential properties and buyers.

Finally, we will leverage social media platforms and real estate websites to reach a wider audience and establish our brand as a reliable source for high-quality, renovated homes.

Risk Policy

The risk policy for our house flipping business is designed to mitigate risks associated with real estate investment and renovation.

We conduct thorough inspections and appraisals to ensure accurate valuations and avoid overpaying for properties. Our renovation projects are carefully budgeted and scheduled to prevent cost overruns and delays.

We maintain a diversified property portfolio to protect against market fluctuations. Additionally, we implement a strict financial management strategy to maintain liquidity and solvency.

Finally, we secure comprehensive insurance coverage for each property to protect against unforeseen events during the renovation and sales process. Our priority is to execute profitable flips while minimizing risks and ensuring the satisfaction of our buyers.

Why Our Project is Viable

We are committed to creating a house flipping business that responds to the demand for quality, move-in-ready homes in the market.

With our strategic approach to property selection, renovation, and sales, we are confident in our ability to generate substantial returns.

We are excited about the opportunity to revitalize properties, contribute to neighborhood improvement, and build a successful enterprise in the real estate industry.

We remain adaptable to market changes and are prepared to make necessary adjustments to our strategies to achieve our objectives, looking forward to a profitable future in house flipping.

You can also read our articles about: - the Business Model Canvas of a house flipping enterprise - the marketing strategy for a house flipping enterprise

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a house flipper and our financial plan for a house flipper .

Initial expenses for our house flipping business include acquiring undervalued properties in need of renovation, costs associated with property inspections, and obtaining permits. We will also budget for comprehensive renovation expenses, which cover materials, labor, and any subcontracting required to bring the properties up to market standards. Additionally, we will allocate funds for branding, market analysis, and promotional activities to attract potential buyers.

Our revenue assumptions are based on a thorough evaluation of the real estate market, including current trends in property values, buyer preferences, and the demand for renovated homes in our target locations.

We anticipate a steady increase in revenue as we complete and sell each property, with the goal of establishing a reputation for quality renovations that attract buyers and command premium prices.

The projected income statement outlines expected revenues from property sales, renovation costs (materials, labor, contractor fees), and operating expenses (utilities, property taxes, marketing, insurance, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability and profitability of our house flipping venture.

The projected balance sheet will reflect assets such as real estate holdings, renovation supplies, and liabilities including mortgages and renovation loans.

It will provide a snapshot of the financial standing of our house flipping business at the end of each fiscal period.

Our projected cash flow budget will detail the inflows from property sales and outflows for renovation expenses and loan repayments, enabling us to predict our financial needs at any point in time. This is crucial for maintaining liquidity and ensuring the smooth operation of our business.

The projected financing plan will identify the mix of personal investment, loans, and other financing methods we intend to use to fund our initial property purchases and renovations.

The working capital requirement for our house flipping business will be carefully managed to ensure we have the funds necessary to cover day-to-day operations, including property acquisitions, renovation costs, and any holding costs until the properties are sold.

The break-even point for our house flipping business is the number of properties we need to renovate and sell to cover all our costs, including initial investments, and begin generating a profit.

This will signal when our business model starts to be financially successful.

Performance indicators we will monitor include the average profit per flip, inventory turnover rate to measure the speed at which we sell renovated properties, and the return on investment to evaluate the efficiency of our capital allocations.

These metrics will assist us in gauging the financial health and overall success of our house flipping business.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a house flipping enterprise .

  • Choosing a selection results in a full page refresh.
  • Opens in a new window.

House Flipping Business Plan [Template + Example in 2024]

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?

Here is the download link.

Let us know if you have any questions!

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.

sample business plan for flipping houses

  • 4,818 founder case studies
  • Access to our founder directory
  • Live events, courses and recordings
  • 8,628 business ideas
  • $1M in software savings

I'm Pat Walls and I created Starter Story - a website dedicated to helping people start businesses. We interview entrepreneurs from around the world about how they started and grew their businesses.

Join our free newsletter to get unlimited access to all startup data. We just need your email:

Check your email

If there's a Starter Story account associated with that email you'll get an email with a link to automatically log in. The link will expire in 15 minutes.

Your existing password still works, should you want to log in with it later.

With Starter Story, you can see exactly how online businesses get to millions in revenue.

Dive into our database of 4,418 case studies & join our community of thousands of successful founders.

sample business plan for flipping houses

Join our free newsletter to get access now. We just need your email:

How To Guide

House-Flipping Business Plan

Clothing Line Business Plan

Clothing Line Business Plan

Cannabis Business Plan

Cannabis Business Plan

Laundromat Business Plan

Laundromat Business Plan

House Flipping Business Plan-House Flipping Business Plan

  • Business Plans

avatar

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.

You may also like

Restaurant Business Plan

Restaurant Business Plan

Laundromat Business Plan

Brewery Business Plan

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

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.

Nick

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.

Image of Zenbusiness business formation

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.

Image of Zenbusiness business formation

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!

sample business plan for flipping houses

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.

sample business plan for flipping houses

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.

Related Business Plans

image of Home Inventory

Home Inventory Business Plan Template & Guidebook

image of Home Inspection

Home Inspection Business Plan Template & Guidebook

image of Home Decor

Home Decor Business Plan Template & Guidebook

image of Health And Wellness

Health And Wellness Business Plan Template & Guidebook

image of Hauling

Hauling Business Plan Template & Guidebook

image of Hardware

Hardware Business Plan Template & Guidebook

image of Handyman

Handyman Business Plan Template & Guidebook

image of Hair Extension

Hair Extension Business Plan Template & Guidebook

image of Handbag

Handbag Business Plan Template & Guidebook

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.

How to Write a Fix-and-Flip Business Plan + Free Template PDF

Male entrepreneur working on applying a new floor to a recent residential home purchase.

Makenna Crocker

6 min. read

Updated February 7, 2024

Free Download:  Sample Fix-and-Flip Business Plan Template

If you’re ready to dive into the world of transforming rundown properties into profit-generating gems, then crafting a rock-solid fix-and-flip business plan is your secret weapon.

This comprehensive guide will walk you through the essential steps to write a winning business plan to turn your real estate passion into a lucrative venture. Get ready to roll up your sleeves, grab a toolbox, and unlock the door to your fix-and-flip success story!

Need extra guidance? You can download our free fix-and-flip business plan template to help you get started.

  • Why Write a Fix-and-Flip Business Plan?

Before you embark on your fix-and-flip adventure, it’s crucial to have a solid business plan in place. A well-crafted business plan not only serves as a roadmap for your real estate endeavors but also showcases your expertise and vision to potential lenders, investors, and partners. It demonstrates that you have a clear understanding of the market, a viable financial strategy, and a comprehensive plan to navigate the complexities of property acquisition, renovation, and resale.

  • Conduct market research

Successful fix-and-flip investors know that market research is the foundation of their business. Understanding the local real estate market, identifying target neighborhoods, and analyzing property trends are vital to finding profitable opportunities.

  • Consider the following key areas when conducting market research for your fix-and-flip business:
  • Location Analysis: Research different neighborhoods and identify areas that have strong market demand, potential for growth, and attractive resale values. Look for neighborhoods with desirable amenities, good school districts, and convenient access to transportation and amenities.
  • Property Analysis: Analyze property sales data, recent sales prices, and market trends in your target area. Pay attention to the types of properties that are in high demand and the average renovation costs to ensure you can maximize your potential profits.
  • Competition Analysis: Identify other fix-and-flip investors and real estate developers operating in your target market. Evaluate their strategies, pricing, and property portfolios to gain insights into successful approaches and opportunities for differentiation.
  • Network Building: Establish relationships with local real estate agents, contractors, and industry professionals who can provide valuable insights and opportunities. Attend networking events, join real estate investment associations, and leverage online platforms to expand your network.

Brought to you by

LivePlan Logo

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

  • Financials and funding

Running a successful fix-and-flip business requires a thorough understanding of the financial aspects involved. Develop a comprehensive financial plan that includes accurate cost projections, realistic profit margins, and a strategy for securing funding.

  • Consider the following financial aspects when creating your fix-and-flip business plan:
  • Project Budgeting: Calculate the total budget for acquiring properties, renovation costs, holding costs, and selling expenses. Consider factors such as property purchase price, closing costs, material and labor costs for renovations, insurance, property taxes, utilities, and marketing expenses.
  • Profit Projections: Estimate the potential profit margins for each project by analyzing comparable sales in the target area and factoring in renovation costs. Keep in mind that unexpected expenses may arise, so build in a contingency budget to mitigate risks.
  • Funding Options: Explore various funding sources to secure capital for your fix-and-flip projects. These may include personal savings, traditional bank loans, private lenders, crowdfunding platforms, or partnerships with other investors. Research each option to determine which aligns best with your financial needs and goals.
  • Return on Investment (ROI): Calculate the expected ROI for each property based on projected profits and investment costs. A thorough analysis of your ROI will help you prioritize and select the most lucrative projects to maximize your returns.
  • Execution Strategy: Rehab, Renovate, and Resell

With your market research and financial plan in place, it’s time to outline your execution strategy for your fix-and-flip business. This involves the process of acquiring distressed properties, rehabilitating them to increase their value, and reselling them for a handsome profit.

  • Consider the following steps when developing your execution strategy:
  • Property Acquisition: Identify distressed properties through various channels such as real estate agents, online listings, foreclosure auctions, or direct marketing. Analyze potential properties based on their condition, location, and potential for value appreciation. Conduct thorough due diligence, including property inspections and title searches, to ensure you’re making a sound investment.
  • Renovation Planning: Develop a detailed renovation plan for each property, outlining the scope of work, estimated costs, and timelines. Consult with contractors, architects, and other professionals to ensure your renovation plans align with local building codes and market demands. Strive for a balance between cost-effective renovations and high-impact improvements that increase property value.
  • Project Management: Efficient project management is crucial to stay on track and within budget. Create a timeline that outlines the start and completion dates for each renovation task. Regularly communicate with contractors, monitor progress, and address any issues that may arise. Effective project management ensures timely completion, minimizes delays, and maximizes your return on investment.
  • Marketing and Sales: Develop a marketing strategy to attract potential buyers and sell your renovated properties quickly. Utilize both traditional and digital marketing channels such as online listings, social media platforms, real estate websites, and signage. Highlight the unique features and upgrades of each property to appeal to your target market. Consider professional staging and high-quality photography to showcase the property’s potential.
  • Resale Timing: Timing is crucial in the fix-and-flip business. Monitor the local real estate market and consult with real estate professionals to determine the best time to sell your renovated property. Consider market trends, interest rates, and demand in your target area. Selling at the right time can significantly impact your profitability.
  • Setting Goals and Tracking Progress

To stay focused and motivated on your fix-and-flip journey, it’s essential to set clear goals and track your progress. Setting both short-term and long-term goals allows you to measure your achievements and make adjustments as needed.

  • Tips for starting a fix-and-flip business
  • Specific Goals: Define specific goals for each project, such as the number of properties to acquire within a certain timeframe, target profit margins, or the total value of properties to renovate in a year. Ensure your goals are measurable and achievable.
  • Performance Metrics: Identify key performance indicators (KPIs) to track your progress. This may include metrics such as acquisition costs, renovation costs, average days on market, or return on investment. Regularly review and analyze these metrics to evaluate the effectiveness of your strategies.
  • Risk Management: Mitigate risks by conducting thorough market research, maintaining a contingency budget, and staying informed about market trends and regulatory changes. Be prepared for unexpected challenges and have backup plans in place to minimize potential setbacks.
  • Continuous Learning: Stay informed about the latest industry trends, renovation techniques, and market dynamics. Attend workshops, seminars, and networking events to learn from experienced professionals and expand your knowledge base.
  • Looking forward

With a solid plan in place, supported by thorough market research, financial projections, and a strategic execution strategy, you’re well-equipped to embark on your real estate adventure. Remember, the fix-and-flip business requires dedication, resilience, and adaptability. Stay diligent and committed to the process. 

As you navigate the world of acquiring, renovating, and reselling properties, keep in mind the importance of building strong relationships with contractors, real estate professionals, and potential buyers. Continuously refine your strategies based on market trends and feedback from each project.

The fix-and-flip business can be both challenging and rewarding. With careful planning, meticulous execution, and a keen eye for potential, you have the opportunity to turn distressed properties into lucrative investments. Stay focused, adapt to market conditions, and always prioritize quality and value in your renovations.

  • Download your free fix-and-flip business plan template

If you’re ready to start your own fix-and-flip business, you can download our free fix-and-flip business plan template from our library of over 550 sample business plans . Get started today, and discover why businesses that plan grow 30% faster than those that don’t.

Content Author: Makenna Crocker

Makenna Crocker is the Marketing Specialist at Richardson Sports. Her work focuses on market and social trends, crafting gripping and authentic content, and enhancing marketing strategy to foster stronger B2B and B2C relationships. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through content that positively influences and inspires others.

Check out LivePlan

Table of Contents

Related Articles

sample business plan for flipping houses

10 Min. Read

How to Write a Mobile App Business Plan + Free Template

Auto repair shop business plan

8 Min. Read

How to Write an Auto Repair Shop Business Plan + Free PDF

Dog grooming business plan

7 Min. Read

How to Write a Dog Grooming Business Plan + Free Sample Plan PDF

Brewery business plan

How to Write a Brewery Business Plan + Free Sample Plan

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

Garrett's Bike Shop

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

LivePlan pitch example

Discover the world’s #1 plan building software

sample business plan for flipping houses

Need a business plan? Call now:

Talk to our experts:

  • Business Plan for Investors
  • Bank/SBA Business Plan
  • Operational/Strategic Planning
  • L1 Visa Business Plan
  • E1 Treaty Trader Visa Business Plan
  • E2 Treaty Investor Visa Business Plan
  • EB1 Business Plan
  • EB2 Visa Business Plan
  • EB5 Business Plan
  • Innovator Founder Visa Business Plan
  • UK Start-Up Visa Business Plan
  • UK Expansion Worker Visa Business Plan
  • Manitoba MPNP Visa Business Plan
  • Start-Up Visa Business Plan
  • Nova Scotia NSNP Visa Business Plan
  • British Columbia BC PNP Visa Business Plan
  • Self-Employed Visa Business Plan
  • OINP Entrepreneur Stream Business Plan
  • LMIA Owner Operator Business Plan
  • ICT Work Permit Business Plan
  • LMIA Mobility Program – C11 Entrepreneur Business Plan
  • USMCA (ex-NAFTA) Business Plan
  • Franchise Business Planning 
  • Landlord Business Plan 
  • Nonprofit Start-Up Business Plan 
  • USDA Business Plan
  • Cannabis business plan 
  • eCommerce business plan
  • Online Boutique Business Plan
  • Mobile Application Business Plan
  • Daycare business plan
  • Restaurant business plan
  • Food Delivery Business Plan
  • Real Estate Business Plan
  • Business Continuity Plan
  • Buy Side Due Diligence Services
  • ICO whitepaper
  • ICO consulting services
  • Confidential Information Memorandum
  • Private Placement Memorandum
  • Feasibility study
  • Fractional CFO
  • How it works
  • Business Plan Examples

House Flipping Business Plan

Published Dec.22, 2016

Updated May.13, 2024

By: Noor Muhammad

Average rating 5 / 5. Vote count: 7

No votes so far! Be the first to rate this post.

Business Plan For House Flipping

Table of Content

What Is a Business Plan For House Flipping?

A house flipping business plan lays out the comprehensive strategy for launching and operating a real estate investment company that acquires undervalued properties, renovates them, and resells them for a profit. 

Creating a business plan for house flipping serves as a blueprint covering all key aspects, including:

  • Industry analysis and market opportunity
  • Target customer profiles and needs
  • Competitive landscape and differentiation strategies
  • Acquisition criteria and rehab specifications
  • Sales, marketing, and pricing approaches
  • Operational processes and workflow
  • Management team and human resources
  • Financial forecasting and funding requirements

A well-crafted house flipping business plan template, similar to a landlord business plan , allows investors and entrepreneurs to validate their concepts, identify potential risks, calculate startup costs, and model projected financials before investing significant capital.

Why Do You Need a Sample Business Plan for Flipping Houses?

A house flipping business plan example is invaluable for several reasons:

  • Gaining Strategic Clarity: A comprehensive business plan for flipping houses forces you to think through every facet of the business in detail. This crystallizes your vision, go-to-market strategies, financial goals, and operational requirements.
  • Securing Funding: Whether raising capital from investors or obtaining bank loans, providing professional house flipping business plan templates demonstrates you have a viable strategy grounded in careful research and planning.
  • Evaluating Financial Feasibility: By conducting a breakeven analysis for house flipping business plan, you can assess whether your house flipping business is profitable and sustainable under various scenarios. This enables adjusting assumptions before investing.
  • Facilitating Growth: Expanding your house flipping operation requires continual updating of the business plan template for flipping houses. A fix and flip business plan will allow you to monitor performance against projections and identify new opportunities.

An interior design business plan section would benefit those offering interior design services as part of the house flipping process.

A high-quality home flipping business plan is an indispensable management tool for de-risking your business, avoiding cash flow issues, and executing a proven investment strategy for maximizing returns.

Here’s a template for a house flipping company called Flippy that teaches you how to write a business plan for flipping houses. This house flipping business plan sample includes all the key sections, each providing valuable insights and strategies:

Executive Summary

Company overview.

Flippy is a newly established house flipping company based in Denver, Colorado. Flippy specializes in:

  • Acquiring undervalued residential properties
  • Renovating them to maximize their market value
  • Reselling them for a profit

With a combined experience of over 15 years in the real estate industry, our management team identifies lucrative investment opportunities and executes cost-effective renovations.

Key Objectives

  • Acquire and renovate 10-12 properties in the first year of operations
  • Achieve an average gross profit margin of 25-30% on each property flip
  • Establish a strong brand reputation for quality and reliability
  • Implement eco-friendly and energy-efficient renovation practices

Mission and Vision

Our mission is to provide high-quality, renovated homes to buyers while generating attractive returns for our investors. We aim to become the leading house flipping business in the Denver metropolitan area.

Financial Summary

Flippy is seeking an initial investment of $500,000 to fund property acquisitions, renovations, and operating expenses. Based on our financial projections, we expect to generate revenue of $680,000 in the first year, with a gross profit of $120,000.

Mission Statement

Flippy’s mission is to focus on the neglected neighborhoods and housing stock in Denver by renovating distressed properties into livable homes. Our goal is to offer buyers a seamless experience in acquiring fully renovated properties with attractive investment returns.

Ownership & Legal Structure

Flippy is a limited liability company (LLC) formed in Colorado by equal partners Sarah Smith and John Joe. The company will operate as a partnership to start, splitting profits and management responsibilities. As the business expands, it may convert to a corporation.

Location & Facilities

The company headquarters will be a low-cost office space of approximately 1,000 sq. ft. in Denver. This will house the business operations team including owners, acquisitions, and administrative staff.

A 5,000 sq. ft. warehouse will be leased as a prep area for house renovations. It will store all construction equipment, materials, and appliances and allow for prep work before deploying to active sites. Larger projects will have a construction management business plan to prevent delays and increase efficiency.

Company History & Ownership Team

Flippy was founded in 2023 by longtime friends and business partners Sarah Smith and John Joe to pursue their mutual passion for renovating homes and real estate investing. Their complementary backgrounds make them ideal co-owners.

Together, the founders bring over 25 years of experience in real estate and construction management which will be critical for Flippy’s success.

Industry Analysis

The house flipping industry has experienced a significant resurgence following the US housing crisis and recession in 2008. As per the report published by ATTOM Data Solutions, 308,922 single-family homes and condos in the United States were flipped in 2023.

In Flippy’s target market of Denver, Colorado, the median home value in Colorado is $545,124, with a 1-year appreciation rate of -2.3% as of Q2 2023. The active listings are 23,256 with 2 months of inventory. The median days to pending sale is 10, with a foreclosure rate of one in every 6,512 homes.

While a highly active market, demand for renovated turnkey properties continues to outpace supply. Develop an engineering consulting business plan for projects requiring specialized engineering services.

Several key market drivers are converging to create sustainable demand for house flipping in Denver, Colorado:

  • Limited supply of developable land for new construction
  • Aging housing stock requiring significant upgrades
  • Strong influx of millennial & out-of-state buyers
  • Low-interest rate environment

Some key industry challenges for house flipping in Denver, Colorado:

  • Availability of suitable investment properties at reasonable prices
  • Fluctuations in housing market conditions and economic cycles
  • Rising material and labor costs impacting renovation budgets
  • Regulatory requirements and zoning laws specific to certain areas
  • Potential for market saturation in highly competitive markets

These demand drivers position Flippy for sustainable growth in a market primed for high-quality home renovation services.

Customer Analysis

Flippy’s primary target buyer groups are:

Target Customer Needs

  • Move-in ready homes requiring zero renovations or modernization
  • On-trend open floor layouts and interior design features
  • Prime neighborhood locations close to jobs, schools, amenities
  • Accurate pricing data to ensure turnkey homes are competitively valued
  • Flexible financing/mortgage options to include renovation costs in mortgages
  • End-to-end service to make transactions seamless and hassle-free

Flippy will customize its property acquisition strategy, renovation specifications, pricing models, and marketing business plan based on the specific preferences and needs of the target customers.

Competitive Analysis

The house flipping market in Denver, Colorado, is actively competitive with several established regional and national players. Flippy will differentiate itself with a laser focus on revitalizing homes for the first-time/move-up buyer segment within a specific pricing range.

Primary Competitors

Royal Flipping: A national franchise operation, Royal Flipping is a market leader focused on mid-tier homes in the $500,000 – $1,200,000 price range. Have significant resources for acquisitions. Lack customized renovation quality. Prioritize low renovation costs. Strong marketing.

Flip City: A local house flipping company known for completing luxury renovations in Denver’s most prestigious neighborhoods. Their niche is homes priced at $2 million on average after high-end renovations are completed. Strong brand but narrow customer focus.

Green Flip: A regional house flipping company primarily focusing on acquiring and renovating properties for the rental investment market. They prioritize maximizing rental income over cosmetic interior design updates meant to appeal to retail buyers. Limited marketing for property sales.

Competitive Advantages

While competitors exist, Flippy will differentiate itself and mitigate competitive threats through the following key advantages:

  • Experienced management team
  • Strategic property acquisitions
  • Emphasis on quality workmanship
  • Incorporation of eco-friendly and energy-efficient practices
  • Efficient project management and cost control processes
  • Strong relationships with local real estate agents

Marketing Plan

Flippy will employ a comprehensive, multi-channel marketing plan carefully tailored to its target buyer segments. Flippy’s business plan ensures cost-effective saturation to generate qualified leads and accelerate sales cycles.

1. Retail Buyer Marketing Tactics

  • Branding & Websites: Each project will have its own brand and website with photos, 3D tours, and local information.
  • Social Media Advertising: Ads for each property will target the ideal buyer audience on all relevant platforms.
  • Open House Events: Regular open house events will be held to connect with potential buyers.
  • Property Listing: All properties will be listed on major real estate sites and local MLS.
  • Direct Mail: Mail pieces highlighting new listings will be sent to nearby homes.

2. Professional Marketing Channels

  • Realtor Outreach: A program will be set up to provide realtors with early access to listings and co-marketing opportunities.
  • MLS Tours/Events: Brokers will be invited to tour properties and suggest pricing and targeting. The team will attend local realtor events.
  • Co-Marketing Partnerships: Partnerships will be formed with related businesses to reach new audiences and offer incentives.

3. Brand Awareness Initiatives

  • Website and SEO: A website will be developed to highlight the company’s story, team, projects, and resources, and will be optimized for search engines. 
  • Email Marketing: An email database will be built to send campaigns about new listings, open houses, and tips.
  • Community Sponsorships & Events: The company will sponsor local organizations and events, and participate in home shows/expos.

Marketing Budget

As per Flippy’s business plan, the initial marketing budget for the first year of operations is $80,000, allocated as follows:

In this real estate flipping business plan pdf we’re providing the market analysis done for George Real Estate. So that you can learn the components of accurate marketing to make your own real estate flipping and management company business plan for flipping houses.

Marketing Budget Breakdown

  • 28% allocated to direct property/listing promotional channels
  • 25% to cultivate realtor/professional partner relationships
  • 23% invested in digital channels (websites, SEO, email, social ads)
  • 15% towards business development and branding initiatives
  • 9% for physical events, open houses, promotions

This comprehensive marketing budget and spending allocation will maximize Flippy’s effectiveness in reaching prospective buyers through both retail and professional channels.

Operations Plan

Property acquisition strategy.

Flippy will employ a multifaceted acquisition strategy using proprietary modeling, market expertise, and aggressive lead generation to identify exceptional, undervalued property acquisition opportunities that meet specific criteria:

  • Property meets ideal specifications for target buyer renovations (2-4 BR, 2 BA, 1,500-2,500 SF)
  • Strong school district and desirable neighborhood demographics
  • Property can be acquired at a minimum 20% discount to market value
  • Projected renovation costs no more than 25% of projected post-repair value
  • Ability to execute a value-add, modern renovation within a set budget
  • Sale potential in line with competitive demand analysis for the area

Properties meeting these guidelines will be sourced through:

  • Multiple Listing Service (MLS) monitoring for attractively priced new listings
  • Foreclosure/Pre-foreclosure auctions and monitoring
  • Wholesaler and off-market property leads generated via marketing
  • Direct outreach to owners of distressed properties via targeted mailings

Renovation Process & Specifications

Utilizing their decades of combined experience, the Flippy team has refined a detailed, multiphase renovation process designed to deliver contemporary, high-caliber finishes within predefined renovation budgets and timelines:

  • Detailed 200-point inspection of property upon acquisition to assess all renovation needs
  • Creation of a comprehensive renovation project plan, scope of work, pricing, and contractors
  • Secure all required renovation permits, permissions and coordinate city inspections
  • Contract and schedule renovation team composed of Flippy’s curated contractors
  • Project oversight with regular quality assurance checks, contractor management
  • Final walkthrough inspection to identify/resolve any remaining punch list items

The renovation specifications developed for each property will be guided by extensive market research, prevailing interior design trends, and the precise needs/preferences of the target buyer segment to maximize resale values and buyer appeal. For projects requiring architectural design services, an architecture firm business plan may be consulted.

All renovation projects will aim to include:

  • Open, modern floor plans through the removal of strategically planned walls
  • Contemporary kitchen and bathroom designs with quality fixtures and surfaces
  • Refinished hardwood floors and energy-efficient windows throughout
  • Enhanced curb appeal through landscaping, updated exteriors, and garage refreshes
  • Smart home integration with wireless networking, security, lighting, and climate controls
  • Upgraded core mechanical systems for HVAC, plumbing, electrical, and insulation
  • Minimal to no additional work required for new owners for years

Sales & Listing Process

Once the renovation process is complete, Flippy will implement an exhaustive, rapid sales process to list, market, and sell each property quickly:

  • Professional home staging and photography/videography to highlight interiors
  • Prepare comprehensive market analysis to determine competitive listing pricing
  • Launch all marketing initiatives (websites, video tours, MLS listing, advertising, etc.)
  • Host open house events and facilitate private showings by realtors and prospective buyers
  • Receive and carefully evaluate any offers submitted, negotiate ideal offer terms
  • Navigate and oversee the closing process with the assistance of the title company and legal counsel
  • Conduct comprehensive pre-closing walkthroughs with buyers to ensure satisfaction

Organization & Management

Company leadership.

Flippy will be led by its co-founding partners who will oversee all operations, financials, personnel, and strategic initiatives:

  • Sarah Smith – President & Chief Renovation Officer
  • John Joe – Vice President & Chief Acquisitions Officer

With their combined 25+ years of complementary real estate, construction, and entrepreneurial experience, Sarah and John are uniquely qualified to lead Flippy to success. They will be supported by a lean team of additional staff and external partners.

Projected Staffing Plan

To begin, Flippy will rely heavily on the co-founders’ expertise to keep staffing as lean as possible until additional help is required:

Year 1: Co-Founders, Administrative Assistant

Year 2: Hire Project Manager, Acquisitions Specialist

Year 3: Add Two Renovation Staff Members

Year 4: Potentially bring on in-house contractors (electricians, plumbers, etc.)

Year 5: Additional support staff as needed (bookkeeping, marketing, etc.)

The co-founders’ hands-on involvement during the early stages allows tight control over costs and quality standards as the business launches and scales. As deal volume and revenues increase, Flippy will make strategic hires.

Use of Outside Partners & Resources

To maintain lean operations, Flippy will leverage external contractors, vendors, and partners for several key functions:

  • Property Inspections/Appraisals
  • Renovation Contractors
  • Realtor/Broker Partnerships
  • Legal/Title
  • Accountants/Bookkeepers
  • Bankers/Lenders

Utilizing outside experts allows focus on core competencies versus developing non-revenue generating staff.

Immigration business plan

Financial plan, start-up funding & use of funds.

The co-founders have successfully raised $500,000 in start-up equity funding from personal networks of accredited private investors. This capital will provide:

  • $200,000 for business launch expenses & initial overhead (office, equipment, materials, etc.)
  • $300,000 for initial property acquisitions and renovation projects
  • Additional $100,000 general operating capital reserve

No other outside capital is required at this stage. Flippy projects being cash flow positive by the end of Year 1.

Projected Income Statements

Notes & assumptions.

  • Real estate commissions of 5% included in Closing Costs
  • Year 1 includes additional one-time startup expenses in G/A
  • Payroll increases in Year 3 from hiring renovation/acquisitions staff
  • Revenue growth of ~10% per year driven by increasing property values

Use of Profit

Flippy will be profitable from Year 4 as per the financial projections in the business plan and will use the net profit as follows:

  • 50% retained for additional property acquisition and renovation investments
  • 20% disbursed to co-founders
  • 30% retained as cash reserves to mitigate risk

This disciplined approach prioritizes sustainable growth, co-founder returns, and a safety net for market fluctuations.

Exit Strategy

The ownership team’s goal is to build Flippy into one of the preeminent house flipping operators in the Denver, Colorado metro area over a 5-7 year period based on the forecasted growth trajectories. At that point, two strategic exit options will be evaluated:

  • Equity Sale or Merger: Partners with complementary businesses (homebuilders, real estate brokerages) that value Flippy’s systemized processes, brand equity, and operations.
  • Franchising Model: With refined systems, the business could transition to a franchise model with expansion in other markets through the sale of regional franchises.

Regardless of the ultimate path, the goal is to proactively plan an exit that maximizes value for the ownership team and investors given Flippy’s strong growth potential and successful business model.

OGSCapital for Your House Flipping Business Plan

At OGSCapital, we specialize in crafting professional, comprehensive house flipping small business plans. Our team of business plan experts averages over 15 years of real-world experience. 

We collaborate directly with clients to develop tailored: 

  • Real estate flipping business plan
  • Financial models
  • Competitive analyses 
  • Financial projections
  • Operational strategies and more

Our business plan provides a solid strategic foundation and roadmap for launching new ventures and driving growth. Contact us for assistance with your business plan.

Frequently Asked Questions

What is the profit of flipping.

In 2023, home flips in the US yielded an average gross profit of $66,000, surpassing the median initial investment of $240,000. This represented a modest return on investment of 27.5% relative to the original cost.

What business entity is best for flipping houses?

The best business entity for flipping houses is typically a Limited Liability Company (LLC). LLC provides: 

  • Personal liability protection
  • Tax flexibility
  • Ease of management

LLC effectively shields personal assets from potential investment-related risks or debts.

Download House Flipping Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

Ice Vending Machine Business Plan

Ice Vending Machine Business Plan

The ice vending machine business is a burgeoning market with significant potential for profitability and growth. This ice vending machine business plan outlines the strategy for launching and managing a successful operation. By leveraging high-traffic locations and advanced vending technology, this venture aims to provide convenient, high-quality ice to consumers 24/7. Our mission is to…

OGScapital at the National Citizenship and Immigration Conference

OGScapital at the National Citizenship and Immigration Conference

We had the pleasure of spending three days at the National Citizenship and Immigration Conference in Halifax where OGScapital proudly served as a Gold Sponsor. It was a delightful experience to connect with our existing partners and colleagues, as well as to forge new friendships. We engaged in meaningful exchanges about business immigration, the latest…

How to Start a Plumbing Business in 2024: A Detailed Guide

How to Start a Plumbing Business in 2024: A Detailed Guide

The global plumbing market is booming and expected to reach $82.2 billion by 2030, with a CAGR of 5.4%. This surge in demand creates a prime opportunity to start a plumbing business in 2024. However, turning your plumbing expertise into a successful company requires a plumbing business plan. Whether you’re a new or experienced entrepreneur, you…

sample business plan for flipping houses

Vegetable Farming Business Plan

Vegetable Farming Business Plan

Trading Business Plan

Trading Business Plan

How To Write A Textile Manufacturing Business Plan

How To Write A Textile Manufacturing Business Plan

Any questions? Get in Touch!

We have been mentioned in the press:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search the site:

BusinessPlanTemplate.com - The World's Leading Business Plan Template Directory

House Flipping Business Plan Template [Updated 2024]

 width=

House Flipping Business Plan Template

If you want to start a house flipping business or expand your current house flipping business, you need a business plan.

The following House Flipping business plan template gives you the key elements to include in a winning real estate flipping business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of an example house flipping business plan. Once you create your plan, download it to PDF to show banks and investors.

House Flipping Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Comments are closed.

download business plan template

IMAGES

  1. Real Estate House Flipping Business Plan Template Sample Pages

    sample business plan for flipping houses

  2. House Flipping Business Plan [Template + Example in 2024]

    sample business plan for flipping houses

  3. Business Plan Template for Flipping Houses Real Estate House Flipping

    sample business plan for flipping houses

  4. Free House Flipping Business Plan Template

    sample business plan for flipping houses

  5. Free House Flipping Business Plan Template

    sample business plan for flipping houses

  6. Free House Flipping Business Plan Template Of House 29 Preliminary Bud

    sample business plan for flipping houses

VIDEO

  1. Flipping Houses: 4 Tips to increase Profits #houseflipping

  2. 🔥Smartsheet Business Plan Software Review 2024

  3. Sample business plan ya mgahawa: mambo muhimu 7 ya kutafakari

  4. Business Plan Examples

  5. Business Plan Examples & Toolkit

  6. House Flipping Spreadsheet

COMMENTS

  1. How to Write a House Flipping Business Plan

    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.

  2. [DOWNLOAD] House Flipping Business Plan Template

    Generally, house flippers shoot for a profit % of 10% to 20% of the After Repair Value on a project. To forecast your Net Income for the year, multiply your profit % by your forecasted annual revenue. Example: In our first year, we are forecasting $1,000,000 in revenue w/ a 15% profit margin on all sales.

  3. House Flipping Business Plan

    This advanced investor-friendly template has been crafted with house-flipping businesses in mind. With step-by-step instructions and examples, this flipping business plan template assists you in developing your own plan. Import data into your editor and start a house-flipping business plan writing.

  4. House Flipping Business Plan Template [Updated 2024]

    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.

  5. House Flipping Business Plan Template (2024)

    Six months of overhead expenses (payroll, rent, utilities): $250,000. Marketing costs: $50,000. Working capital: $100,000. Easily complete your House Flipping business plan! Download the House Flipping business plan template (including a customizable financial model) to your computer here <-.

  6. 11 Must-Haves In A House Flipping Business

    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.

  7. How To Start A House-Flipping Business: Plan Your Success In 10 Steps

    It acts as an elevator pitch, briefly summarizing your entire plan and highlighting your unique value proposition. Pave the way for a profitable career by crafting a compelling executive summary at the beginning of your house-flipping business plan before you do anything else. 2. Conduct A Comparative Market Analysis.

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

    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.

  9. House Flipping Business Plan [Sample Template for 2022]

    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 ...

  10. How to Start a House-Flipping Business

    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 ...

  11. Business Plan for Flipping Houses: Free Checklist & Template

    Request your Free House Flipping Business Plan Template today by filling in the form to the right and start flipping houses. Use our House Flipping Calculator to calculate a cost breakdown for your next project. Stay organized and maximize your investment with this free house flipping business plan template from Rehab Financial Group.

  12. How To Create A House-Flipping Business Plan [Correctly]

    A great house-flipping business plan must include the work of your marketing department. This way, you won't have to outsource the process of selling the properties to a real-estate agency, keeping a better portion of the profit for you and your employees. First of all, determine the target market.

  13. House Flipping Enterprise Business Plan Sample (Free)

    Here is a free business plan sample for a house flipping enterprise January 29, 2024. If the thrill of transforming a fixer-upper into a stunning home excites you, and you're eager to dive into the world of house flipping, you've landed on the perfect page. ... A good business plan for a house flipping business must be tailored to the unique ...

  14. How To Start A House Flipping Business

    Step 3: Write Your Business Plan. Every business should have a business plan, and a house flipping business is no exception. A business plan outlines the purpose of your business, evaluates the industry and your competition, projects profitability, and states the goals of your business. It also details basic timelines, projected budgets, your ...

  15. PDF House Flipping Business Plan Example

    The most important component of an effective house flipping business plan is its accurate marketing analysis. If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this house flipping business plan sample or other house flipping business plans available online. Industry Analysis Start Writing here...

  16. House Flipping Business Plan [Template + Example in 2024]

    House Flipping Business Plan [Template + Example in 2024] Pat Walls. •. Updated: February 22nd, 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 ...

  17. How To Create A Winning House Flipping Business Plan

    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 ...

  18. The #1 House Flipping Business Plan Template & Guidebook

    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 ...

  19. How to Write a Business Plan for Fix-n-Flip Real Estate

    Download your free fix-and-flip business plan template. If you're ready to start your own fix-and-flip business, you can download our free fix-and-flip business plan template from our library of over 550 sample business plans. Get started today, and discover why businesses that plan grow 30% faster than those that don't.

  20. Real Estate House Flipping Business Plan Template

    Real Estate House Flipping Business Plan Template (Microsoft Word) - $47.00. +Add Excel Worksheet (Recommended) - $35.00. +Add PowerPoint Template and 4 Funding eBooks - $65.00. +Add Business Startup, Finance, Marketing Documents 781 Templates - $185.00.

  21. House Flipping Business Plan Template [2024]

    A house flipping business plan lays out the comprehensive strategy for launching and operating a real estate investment company that acquires undervalued properties, renovates them, and resells them for a profit. Creating a business plan for house flipping serves as a blueprint covering all key aspects, including: Industry analysis and market ...

  22. House Flipping Business Plan Template [Updated 2024]

    House Flipping Business Plan Template. If you want to start a house flipping business or expand your current house flipping business, you need a business plan. The following House Flipping business plan template gives you the key elements to include in a winning real estate flipping business plan.

  23. How to Make a House Flipping Business Plan

    For example, suppose a home will have an ARV of $250,000 following $25,000 in repairs or rehab costs. According to the 70% rule, the investor should pay no more than $150,000 to purchase the home: $250,000 x 0.7 = $175,000 (70% of $250,000) $175,000 - $25,000 = $150,000 purchase price. The 70% rule can have limitations.