sample business plan for flipping houses

House Flipping Business Plan Template

Written by Dave Lavinsky

House Flipping Business Plan

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

Download our Ultimate Business Plan Template here >

What is a House Flipping Business Plan?

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

Why You Need a Business Plan for Your House Flipping Business

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

Sources of Funding for House Flipping Businesses

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

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

Finish Your Business Plan Today!

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

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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

Competitive Analysis

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

Direct competitors are other house flipping businesses. 

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

House Flipping Business Plan FAQs

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

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

Where Can I Download a House Flipping Business Plan PDF?

You can download a house flipping business plan pdf here.

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

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

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

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

House Flipping Business Plan Template

Written by Dave Lavinsky

House Flipping Business Plan

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

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

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

Executive Summary

Business overview.

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

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

Product Offering

SW Redevelopment will be able to provide the following services:

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

SW Redevelopment will primarily offer single-family residential properties.

Customer Focus

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

Management Team

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

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

Success Factors

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

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

Financial Highlights

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

Specifically, these funds will be used as follows:

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

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

Company Overview

Who is sw redevelopment, sw redevelopment history.

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

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

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

Since incorporation, the company has achieved the following milestones:

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

SW Redevelopment Services

Industry analysis.

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

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

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

Customer Analysis

Demographic profile of target market.

The precise demographics for Phoenix, Arizona are:

Customer Segmentation

We will primarily target the following customer segments:

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

Competitive Analysis

Direct and indirect competitors.

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

Property Fortune Flippers

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

House Flippers

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

Equity Investors

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

Competitive Advantage

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

Marketing Plan

Brand & value proposition.

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

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

Promotions Strategy

The promotions strategy for SW Redevelopment is as follows:

Direct Mail

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

Open House Events

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

Website/SEO

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

Social Media

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

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

Operations Plan

The following will be the operations plan for SW Redevelopment.

Operation Functions:

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

Milestones:

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

3/202X            Finalize lease agreement

4/202X            Design and build out SW Redevelopment

5/202X            Hire and train initial staff

6/202X            Kickoff of promotional campaign

7/202X            Launch SW Redevelopment

8/202X            Reach break-even

Financial Plan

Key revenue & costs.

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

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

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

Funding Requirements and Use of Funds

Key assumptions.

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

Financial Projections

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

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

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

What are the Main Types of House Flipping Businesses?

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

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

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

What are the Steps To Start a House Flipping Business?

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

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

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

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

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

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

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

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

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

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

• How to Start a House Flipping Business

Other Helpful Templates

Cleaning Business Plan Template Mortgage Broker Business Plan Template

House Flipping Business Plan

• 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

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

Organizational Structure

Business entity & structure.

Talk About Yourself

Talk about your team.

Business Strategies & Processes

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

Deal Due Diligence

Project Management Strategies

Business Goals & Forecasts

3 to 5 year financial plan, project goals.

Revenue Goals

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

Real Estate Investing & Rental Management | How To

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

Published October 18, 2023

Published Oct 18, 2023

REVIEWED BY: Gina Baker

WRITTEN BY: Melanie Patterson

Download our Landlord Handbook e-book

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

• 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

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.

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

Open a Business Bank Account

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

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

Analytics in the Baselane dashboard (Source: Baselane )

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

Visit Baselane

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

3. Find Financing Sources for Your House-flipping Business

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

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

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

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

Real estate investor groups (Source: Meetup )

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

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

4. Hire the Right House-flipping Professionals

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

Some important house-flipping pros to hire include:

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

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

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

5. Identify the Right Properties to Fix & Flip

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

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

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

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

6. Create a Marketing & Lead Generation Plan

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

Marketing Your Fix & Flip Business

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

Consider starting your business with these marketing elements :

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

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

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

Gmail business email account. (Source: Google Workspace )

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

Business card templates (Source: Canva )

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

Visit Canva

Lead Generation Strategies for Your Business

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

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

7. Buy, Rehab, Market & Sell Properties

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

The process of making money flipping houses goes like this:

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

Course platform (Source: Colibri Real Estate )

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

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

Mistakes to Avoid When Starting a House Flipping Business

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

Some mistakes to avoid when flipping houses include:

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

Frequently Asked Questions (FAQs)

What is the 70% rule in house flipping.

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

How much money do you need to start flipping houses?

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

How many houses a year can you flip?

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

Bottom Line

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

About the Author

Find Melanie On LinkedIn

Melanie Patterson

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

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.

• 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

Why Start Flipping Houses?

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

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

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

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

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

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

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

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

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

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

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

Clarify whether or not a respective revenue model makes sense.

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

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

Help investors turn their thoughts into more actionable processes.

Bring to light an individual’s strengths and weaknesses.

Force some investors to address their own risk tolerance.

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

Executive Summary (Mission Statement)

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

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

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

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

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

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

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

Private Money Lenders

Hard Money Lenders

Institutional Lenders

Owner Financing Strategies

Crowdsourcing

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

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

Direct Mail Marketing

Bandit Signs

Door Hangers

Curated Lists Purchased Online

Real Estate Investment Clubs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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!

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.

House-Flipping Business Plan

Clothing Line Business Plan

Cannabis Business Plan

Laundromat Business Plan

• Business Plans

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

Game App Business Plan

Dating App 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.

• 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

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.

Starting a house-flipping business in 8 steps

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

Step 1: Write a business plan

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

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

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

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

How much do you need?

with Fundera by NerdWallet

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

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

Step 2: Grow your network

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

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

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

Step 3: Choose a business entity

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

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

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

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

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

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

Step 5: Find suppliers and contractors

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

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

Step 6: Assemble a team

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

Business partners or investors

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

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

Realtors or property owners

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

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

Legal counsel

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

Step 7: Obtain financing

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

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

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

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

Friends and family loan

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

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

Tap into your 401(k)

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

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

Combination financing

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

Step 8: Source your deal

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

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

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

Start Your Dream Business

Follow these best practices for a successful house-flipping business

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

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

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

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

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

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

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

On a similar note...

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

• 518-310-6500

House Flipping Business Plan for First Time Filppers

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

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

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

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

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

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

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

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

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

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

Other People Who Have Followed This Business Plan

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

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

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

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

Home Flipping Success Stories

Blueprint Real Estate Guide to Growing Trends

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

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

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

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

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

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

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

Real Estate Blueprint

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

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

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

Now you’re thinking! 

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

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

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

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

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

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

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

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

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

There are ten items essential to your business plan:

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

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

Funding A House Flipping Deal

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

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

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

Financing is often what scares people away from real estate. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Know How Much Will Your Flip Stand To Profit

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

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

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

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

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

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

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

Think about that… PREDICTABLE.

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

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

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

Variable Costs of House Flipping

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

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

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

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

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

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

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

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

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

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

Some financing options will necessitate a shorter timeline. 

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

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

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

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

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

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

Consider everyone who will be relying on your timeline:

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

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

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

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

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

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

More Time Costs Lowers Your Home Flip Profit

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

Plan against some of the most common profit suckers:

Underestimating the Cost of Renovations

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

Missing Deadlines

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

Overlooking Essential Details

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

Not Considering the Target Market

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

Failing to Budget for Contingencies

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

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

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

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

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

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

Flipping A House With No Experience

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

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

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

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

So how can this be?

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

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

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

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

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

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

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

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

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

This may be the case, but consider this.

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

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

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

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

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

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

It’s True! No Experience Required In Home Flipping

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

It really is the perfect gateway to financial freedom.

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

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

Experience provides several benefits, including:

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

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

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

But not in a flip. 

You need certainty. You need predictability. 

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

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

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

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

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

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

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

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

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

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

How to Find A House to Flip

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

• Desperation
• Downsizing 

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

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

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

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

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

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

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

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

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

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

Focus On Building Your Flipping Blueprint

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

But it’s essential. 

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

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

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

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

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

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

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

Laser-like focus in a single direction.

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

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

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

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

How to Flip A House with $10,000

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

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

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

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

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

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

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

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

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

Money Is Not An Obstacle

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

Experienced investors know that creativity overcomes a myriad of obstacles and there are many mechanisms that exist to help hungry and motivated entrepreneurs and investors get into the game no matter their net worth.

Some of the strategies that Home Flipping Workshop students leverage as a part of their business plan include:

• Partner with others: Joining forces with other investors or business partners can provide access to additional resources and help spread the risk.
• Be creative with financing: Experienced investors are often creative with financing, finding alternative sources of funding that may not be available to others, including crowdfunding, peer-to-peer lending, and using retirement funds.
• Build a network: Experienced investors often have a network of professionals, such as lawyers, accountants, and real estate agents, who can provide support and guidance.
• Utilize government programs: Experienced investors know government programs that provide financial assistance and incentives, such as grants and tax credits.

Experienced investors understand that money is just a minor obstacle to achieving their goals, and they have developed creative strategies to eliminate it as a barrier. These strategies allow investors to access the resources they need to succeed, even with limited funds.

Using other people’s money is a quick way to fund your property flipping deals, but you need to know whose money to use. It’s best if you have options.

The following nine options are the primary ways investors secure funds:

• Live-in Flip
• Wholesaling
• Home Equity
• Option to Buy
• Private Lenders
• Partner with an Investor

Many new investors need to be made aware of the funding opportunities available to them. 

It does not matter whether you are a new or a seasoned investor, utilizing the above factors is the best real estate strategy to get you started with no money in the market today.

Discover the Key to Flipping Houses

Perhaps you’ve always known you don’t want to fly blindly into your home flipping experience. 

Maybe you’ve skimmed through our plan article and decided that it would be worth exploring an educational experience like Home Flipping Workshop. 

Regardless of how you arrived at the decision to pay for training (versus paying for mistakes), you should be applauded. Home Flipping Workshop isn’t for everyone but the people who do go through it and commit to their home flipping dreams find that the key is following a proven plan.

In three days students learn the entire scope of home flipping success and take the principles covered in this article and actually are able to fill in many of the blanks with their only business plans. 

Imagine having a bulletproof method to invest in real estate without experience, money, or credit.

Glenn and Amber Schworm turned $80K of credit card debt into over $100 million in business earnings, and have crafted a formula for securing your economic freedom.

Join our intensive 3-day virtual Home Flipping Workshop where you’ll receive no-nonsense training that reveals:

• Insider secrets about wholesaling
• Long-term strategies for real estate investing through property ownership
• Techniques for building generational wealth by fixing and flipping houses

Seize this opportunity to fast-track your journey towards financial and time freedom. Thousands of ordinary people earn $40-100K per deal by flipping houses, and many do it using other people’s money.

With over 1,000 successfully flipped houses since 2007, Glenn and Amber Schworm are offering you their proven system on a silver platter.

At the Home Flipping Workshop, you will learn how to:

• Find lucrative properties in your local area
• Secure funding without relying on your own money or credit
• Confidently add value to deals through skillful renovations
• Utilize our foolproof formula to flip houses and generate substantial profits
• Capitalize on opportunities for recurring revenue by holding properties

Glenn emphasizes, “Our Home Flipping Workshop teaches you how to make money through buying and selling properties and accumulate wealth through homeownership.” It is the key to flipping houses. 

Real estate investing is not a one-size-fits-all endeavor. Glenn and Amber provide mentors and coaches to support students upon completing the course.

Our workshop also addresses common fears and provides professional development for aspiring entrepreneurs.

Attending the Home Flipping Workshop gives you a clearer vision of achieving overall success.

Use the Home Flipping Workshop content to learn proven techniques and gain valuable tips.

What is your dream for your life?

We often hear about living the dream, but how many achieve it? Don’t underestimate the power of your dreams. Instead of merely observing wealthy individuals driving fancy cars, living luxuriously, and traveling at will, strive to attain your personal dreams.

While celebrities earn significant amounts of money, they often require guidance to find their purpose. The Schworms share bulletproof strategies, based on their extensive experience in the real estate industry to help individuals make their dreams come true. 

With VestorPro, you can access a wealth of knowledge and expertise to guide you through the intricacies of real estate investing.

Contact VestorPro today to get started on your journey toward success. Their team of professionals is dedicated to providing personalized guidance and support tailored to your specific goals and aspirations. 

By reaching out to VestorPro, you can access a treasure trove of real estate blueprints that will serve as your roadmap to financial prosperity.

Don’t let uncertainty hold you back from achieving your dreams in the real estate industry. Take action now and contact VestorPro today. Their proven strategies and passion for empowering individuals make them the ideal partner on your path to success. 

Embrace the opportunity to learn from industry experts and turn your aspirations into reality with VestorPro’s real estate blueprints. Get in touch with them today and embark on a journey that will transform your life.

Home flipping is your gateway into real estate investment and true generational wealth, financial legacy, and personal freedom. 

• Intro Course
• Live Workshop
• Flipping Book (Free)
• Success Stories

Intro to Flipping

Register for our free introductory course taught by Glenn & Amber Schworm

• Terms of Use
• Privacy Policy

Get the Free HFW Intro Course

Home flipping starts here.

Where should we send your video course access?

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.

Free Business Plan Template

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.

• 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.

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

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning Services
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB-1 Business Plan
• EB-2 NIW Business Plan
• EB-5 Business Plan
• Innovator Founder Visa Business Plan
• Start-Up Visa Business Plan
• Expansion Worker Visa Business Plan
• Manitoba MPNP 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 Plan
• 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
• Pitch Deck Consulting Services
• Financial Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Real Estate Flipping Business Plan Template

DEC.22, 2016

Real estate flipping business plan for starting your own business

Are you thinking of starting a real estate flipping houses business? Well, the business is extremely profitable provided that you manage it properly.

A real estate flipping business includes purchasing small/ large properties, work on their renovation to boost the property value, and then resell them. All you need to do to set up this business is acquiring the license and permits, invest a large amount and make timely decisions.

While the business is profitable it is also slightly difficult to manage as you’ll have to strictly adhere to time and finances. To ensure that your business runs according to your expectations, you should first create a business plan for real estate flipping. If you don’t know what to include in your business plan for flipping houses , you can take help from this sample plan written for the startup, George Real Estate.

Overview of the House Flipping Sector

The first thing to appreciate with the property flipping sector when writing your real estate flipping business plan is that the real estate niche is one of the preeminent contributors to the surge of a country’s economy throughout the whole wide earth. House flipping is a common and lucrative business plan for flipping houses in the real estate sector. For the flipping agent, there exist no caps to the amount of profits you can achieve given you stick to the stipulated regulations withal maintain a high degree of professionalism withal diligence. It is a no brainer that the house flipping sector has built a reputation for creating fortunes in the USA overnight.

According to published results of a study by the Department of Drudgery and Statistics, the house flipping sector will experience an 11.1% billet surge for the period betwixt 2012 withal 2022. The study also went ahead to reveal that more than 38,000 billets would be created in the house flipping sector alone, a clear reason why it has such a significant impact on the economy and the government. Keep this information in mind when planning to write a flipping house plan of a business .

In 2013, it estimates indicate that flipping of a single-family home stood at 156,862. This figure is 16% more than that recorded in 2012 and an overwhelming 114% jump in distinction to 2011. The biggest idiosyncrasy betwixt the sale price of the aboriginal and subsequent flip business is usually $58,081.

Here in the USA, bridle of the real estate sector is by the federal government to protect house owners against fraudsters. To contrive a real estate house flipping business plan in the house flipping sector, one needs to evoke a license from the relevant authorities. However, some states allow lawyers to work as flippers without having to apply for a permit. To get the permit, one has to sit for several precinct real estate exams and pass.

It is also important to note that a rental real estate business plan agent in this country should bestow the buying and vending parties, with punctilious withal precise dossier about the deal to warrant that everybody is reading from the same page from the start.

Similar to other investments, we have potential challenges and downsides, which a house flipper should keep in mind. This is to avert losses as well as disappointments. One such challenge is an unexpected downturn in a country’s economy or demand for homes. On average, it takes 2-3 years to sell properties, but this is strung out on the wampum deluge withal the capaciousness of the venture. Projects that require extensive repairs and renovations can take until five dotage or bounteous. Other unexpected factors can come into play thereby complicating the process such as an increase in cost due to inflation and currency devaluation. Delays by contractors can also lead to a sharp increase in price typically if the seller depends on coffer credit.

Creativity is crucial for the business plan for flipping houses success of a flipper. You ought to be capable to stock up on ideas that give you an added advantage in the flipping exposition. You should also consider your aptitude to adapt to the fast changes in the exposition.

Executive Summary

2.1 the business.

George Real Estate will be a licensed and registered real estate startup based in Denver. The business plan for flipping houses will purchase buildings for homes, schools, offices, and small businesses to resell them after required restoration.

2.2 Management of Real Estate Flipping Company

If you are looking for how to set up a business plan for flipping houses you must realize that the business is primarily about efficient management. To run this business plan for flipping houses you will have to flip multiple properties at a time. And that means you’ll have to negotiate deals and complete legal requirements for many projects at the same time.

Therefore, to manage this business plan for flipping houses you need a large and skillful workforce. In this real estate flipping business plan we’ll provide all the details to help you in learning how to start a house flipping company.

2.3 Customers of Real Estate Flipping Company

The real estate flipping business if started on a large scale has its customers belonging to every field of life. However, George Home Flipping will be started on a small scale so the groups of target customers, in the beginning, are as follows:

• General Residential Community
• Commercial Sector (Stores, Private Hostels, Restaurants, Parking Lots, Schools)
• Rental Businesses

2.4 Business Target

Our targets are to expand our service area to two cities by the end of five years of launch and to earn a profit margin of $30.4k per month by the end of the first three years.

Company Summary

3.1 company owner.

George Home Flipping will be owned by George Martin. George is a graduate in business administration. He has worked in a rental agency for two years and is considered a man who is unbeatable in negotiations.

3.2 Why the real estate flipping company is being started

George is starting a business flipping houses because this is a type of business where he can utilize his skills the most.

3.3 How the real estate flipping company will be started

Step1: Make a real estate flipping business plan template

Starting and running a business plan for flipping houses is a difficult venture. As it needs quick decisions and time management. According to flipping a house business definition, this business requires reselling the purchased property for making profits. This indicates that you’ll have to ensure a timely resell. Because the more you keep the property to yourself, the more will be its expenses and maintenance costs.

Keeping in view the importance of time and management in this business, it is essential to plan everything before actually initiating the startup. In this sample real estate flipping business plan, we are providing all the details of how George will run his business. And how he’ll ensure quick work delivery.

Step2: Get registrations, licenses, EIN, and permits

After making your real estate flipping business plan , the next step is to get the required licenses, permits, and employer identification number.

Step3: Establish your office

After completing the initial requirements, you should start setting up your office and a place where you can keep the inventory and machinery.

Step4: Hire the staff

George decided to hire his staff after strict tests and interviews. He will hire real estate agents, attorneys, remodeling contractors, real estate CPA and appraisers.

Step5: Promote, market, establish a web presence

To reach the target audience, George will promote his services through advertisement, social media, and website.

Before starting this business plan for flipping houses , you should decide which flipping real estate properties you’ll be buying and reselling. This decision should be based on your target market, your money reserves, and the legal requirements in your operating vicinity.

George decided to start his business plan for flipping houses on an intermediate scale. In this business plan for flipping houses example we are listing the properties he’ll be flipping in the first five years.

Residential Homes

We will purchase and sell newly constructed as well as old residential buildings throughout Denver. They will include

• Single Family Homes
• Vacation Homes
• Small and Large Flats/ Apartments
• Rental Homes

In this service, we’ll also furnish the homes so that people who live independently would have to do little to no effort in arranging their houses.

Business Offices

We will also purchase, renovate and resell business offices and small buildings to be used as business headquarters.

Commercial Property

This service will include real estate flipping of all small and medium-sized properties that can be used as

• Retail Stores
• Parking Lots
• Private Hostels
• Restaurants
• Public Library

School Buildings

Lastly, we will also resell school buildings after the required renovation. However, this service will be offered for small school buildings only.

Marketing Analysis of Real Estate Flipping Company

Before starting a house flipping business you should carry out a detailed house flipping market analysis. This will help you in understanding the market ups and downs and the prevailing situation of buyers’ trends. Moreover, it will enable you to recognize your customers and the market competitors so that you could define a suitable pricing strategy.

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 .

5.1 Market Trends

According to IBISWorld, real estate flipping businesses  have grown at a rate of 2.6% during the past five years i.e. from 2015 to 2020. The real estate flipping companies are expected to grow more in the coming years as the country recovers from COVID-19.

At present, more than 955k real estate businesses are successfully running in the United States. Collectively they are holding a market size of $164 billion. Moreover, the industry employment of these businesses is reported to be over 1.137 million by the same source.

Thus, the market stats show that you can not be at loss by starting this business plan for flipping houses provided that you plan and run it effectively.

5.2 Marketing Segmentation

Knowing your target customers is essential before you start a real estate business. Because the type of property you purchase, renovation, furnishings, pricing will all be dependent on the buying behaviors of your customers.

To explore the interests and expectations of his target customers, George divided them into the following groups:

5.2.1 Residential Community

Our primary customers will be the residents i.e. families living in our city. Such people want to save themselves from the hassle of searching for an available and suitable property for their needs. And spending time and money on the required renovation.

Therefore, they are expected to seek our services to buy a property. With us, they will also be saved from keeping track of legal processes.

5.2.2 Commercial Sector

Our second primary customers will be the people who want to own property for commercial purposes. They may include school owners, retailers, hostel owners, restaurant owners, etc.

5.2.3 Rental Businesses

Lastly, businesses who purchase properties such as flats and apartments to give them on rent will also be our target customers.

5.3 Business Target

• To earn a net profit of $30.4k per month within three years of our launch
• To expand our business to also include large commercial buildings by the end of the five years of our launch
• To achieve and maintain a CSAT score above 95% within a year of our launch

5.4 Product Pricing

Our prices are a little higher than our competitors’. It is because of the exclusive benefits we’ll be offering our customers. Those benefits will be listed in detail in our sales strategy.

Marketing Strategy

To convince your target customers to utilize your services, you’ll have to develop an effective marketing strategy. In your property strategy template you must mention your competitive aspects and your policies to facilitate your buyers. In this house flipping business model we are providing the marketing strategy developed for George Real Estate.

6.1 Competitive Analysis

• We are launching a website and mobile app so that our customers can explore the available properties remotely.
• We do have remodeling staff. However, to manage large projects we’ll be outsourcing renovation work so that the work delivery and quality aren’t compromised.
• Lastly, we are working in partnership with some real estate agents so we expect to get more customers as compared to our market competitors.

6.2 Sales Strategy

To advertise our services:

• We’ll run a campaign through social media (Facebook & Instagram).
• We’ll promote our startup through Google Local ads and local magazines.
• We’ll offer a 20% discount on all of our services for the first month of our launch.
• We’ll provide free electrician and plumbing services to our property purchasers.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

The real estate flipping business is mainly related to time management and negotiations. Therefore, the success of this business plan for flipping houses largely depends on your employees. Your employees must have adequate skills to judge the property value, negotiate contracts with property sellers, and explore the potential buyers.

In this flipping real estate business plan, we’re providing the personnel plan developed for George Real Estate.

7.1 Company Staff

George will supervise all the business operations and deals himself. However, he’ll hire the following people for his help:

• 1 Co-Manager to help in management
• 1 Real Estate CPA to maintain financial records
• 1 Appraiser to estimate property value
• 1 Real Estate Attorney to fulfill legal requirements
• 3 Sales Executives to negotiate deals
• 1 Remodelling Contractor to renovate properties
• 1 Advertising Manager to promote business
• 1 Web Developer to manage websites, social sites, and mobile app
• 2 Renovating Assistants
• 1 Call Operator

7.2 Average Salary of Employees

Roles and responsibilities, chief executive officer (ceo).

• Boost the efficiency of the directorate through carefully electing, acclimatizing, teaching, augmenting, tutoring, admonishing, as well as ennobling supervisors. Disseminating the purpose, artifices, and ambitions to the staff members
• Create a sample communication artifice as well as oversee the enforcing of the institution’s vision, purpose, and intentions.
• Fix tariffs and sign deals on the countenance of the house flipping company
• Steer the house flipping company in the proper direction
• Create and oversee exertion of the comprehensive subtlety
• Sign checks and deeds for the house flipping company
• Evaluate and monitor the ascendancy of the house flipping company
• Prepare and present reports to the board

Project Manager

• Supervise house projects
• Confirm that the business plan for flipping houses conveyance complies with the house executions
• Offer professional advice to the company’s directorate regarding the house projects
• Carry out risk assessment
• Plan, manage, and coordinate all house flipping projects on countenance of the house company
• Oversee the invoicing, nicking, and reckoning of all house projects
• Keep level of the progress of a house project and IT systems
• Make sure that the inveterate house project results are achieved using the resources available efficiently

HR Manager and Admin

• Define job positions to enable the contracting and administering of practices goes smoothly and correctly
• Oversee the bland running of the jurisdictional and human resource departments
• Oversee induction of new employees
• Organize the appraisal, coaching, and reckoning of staff
• Manage the office operations on a circadian basis

Head of Acquisitions, and Dispositions

• Manage druthers and accretion
• Pinpoint and thoroughly analyze the purchasing fortuity and accretion
• Identify business fortuity to fast track the accretion of new residences and assets
• Conduct periodic house flipping market and research studies to know the estimated amount of properties
• Contact conceivable buyers and intermediaries
• Structure house sales transactions

Head of Asset Management

• Monitor the business valise of realty holdings under the company
• Provide cardinal oversight of all quiescent and extant assets in various geographic areas
• Manage strategies and fiscal estimates for acreage
• Oversee aliment of the assigned residences and acreage

Sales and Marketing Officer

• Add available resources to the indexing for sale of the conjunct
• Grab market space, locate tenants and take part in house leasing negotiations
• Prepare and present acreage status acknowledgment documents to embryonic clients
• Prepare all necessary documents to facilitate advertising, marketing, and sale of residences
• Organize open house shows
• Prepare business pecuniary statements, pecuniary affidavits, and fiscal estimates of the entire company
• Coeval work and mercantile accounting reports, assay, and augmenting resources to managers
• Carefully analyze financial feasibility of complex proposed house projects
• Ensure the company complies with taxation legislation
• Be the in-house bookkeeper of our house flipping company
• Oversee all pecuniary proceedings carried out on countenance of the company

Customer Service Officer

• Distribute letters in the organization
• Receive clients and visitors to the organization
• Receive company deeds and parcels
• Ensure the contact information of our house flipping clients’ are captured
• Keep a record of all information on all houses owned by the company

SWOT Analysis

A house flipping business model is not complete without a SWOT assay. The house flipping company is lucrative, however, there are some challenges that one should be aware of at all times to continue making profits in the company.

Immigration Business Plan

One of our strengths is the ability to create formidable relationships with the various stakeholders and customers. Conjointly, our ability to gain ingress financing and a profound boisterous commission program will warrant that we abide to offer quality house flipping services to our customers.

As a new entry in the house reselling company, one of our sample challenges will be competing alongside the sector leaders. We have an able team of marketers with skills and dexterity to generate strong house reselling strategies on how we will handle this challenge and emerge victorious in the house reselling company.

Opportunities

The positive economic proliferation in the nation has opened numerous opportunities for house reselling sectors. The sky is no longer the limit, but a milestone.

The presage that we are apt to face includes calamitous government guidelines, international mercantile deterioration, and the list continues. There is little that we can do to curtail and protect ourselves from these threats, but with a buoyant mentality, we will be dexterous to establish the house reselling company.

Financial Plan

A financial plan is the most important part of a business plan for flipping houses . To successfully run this business plan for flipping houses , you have to design a financial strategy for major business aspects, such as:

• Which type of property should you purchase to ensure quick resell?
• How to buy and sell real estate for profit?
• How much money you should spend on the renovation?
• How to manage loss in the case of holding a property for long?

To manage your finances, while keeping all these phenomena in prospect, you must make a financial plan. To help you in making an accurate and detailed financial plan, we’re providing loss and profit projections, balance sheets, break-even analysis, and cash flow tables developed for George Real Estate.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

OGScapital writer specializes in business plan themes such as interior design business plan , engineering consulting business plan , construction management business plan , architecture firm business plan and etc.

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.

Add comment

E-mail is already registered on the site. Please use the Login form or enter another .

You entered an incorrect username or password

Comments (0)

mentioned in the press:

Search the site:

OGScapital website is not supported for your current browser. Please use: