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11 Components Of A Successful House Flipping Business Plan

Why Start Flipping Houses?

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

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

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

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

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

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

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

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

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

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

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

Clarify whether or not a respective revenue model makes sense.

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

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

Help investors turn their thoughts into more actionable processes.

Bring to light an individual’s strengths and weaknesses.

Force some investors to address their own risk tolerance.

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

Executive Summary (Mission Statement)

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

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

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

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

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

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

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

Private Money Lenders

Hard Money Lenders

Institutional Lenders

Owner Financing Strategies

Crowdsourcing

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

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

Direct Mail Marketing

Bandit Signs

Door Hangers

Curated Lists Purchased Online

Real Estate Investment Clubs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Starting a house-flipping business in 8 steps

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

Step 1: Write a business plan

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

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

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

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

How much do you need?

with Fundera by NerdWallet

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

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

Step 2: Grow your network

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

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

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

Step 3: Choose a business entity

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

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

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

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

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

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

Step 5: Find suppliers and contractors

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

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

Step 6: Assemble a team

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

Business partners or investors

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

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

Realtors or property owners

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

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

Legal counsel

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

Step 7: Obtain financing

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

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

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

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

Friends and family loan

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

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

Tap into your 401(k)

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

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

Combination financing

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

Step 8: Source your deal

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

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

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

Start Your Dream Business

Follow these best practices for a successful house-flipping business

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

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

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

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

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

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

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

On a similar note...

How to Write a House Flipping Business Plan

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

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

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

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

Click Here Get Your Free House Flipping Business Plan Template

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

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

House Flipping Business Plan Outline

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

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

Executive Summary

Mission statement.

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

Exit Strategies and Backup Plans

What are you doing.

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

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

Why are you embarking on this business venture?

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

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

Comparative Market Analysis

What is the economic environment surrounding your project.

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

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

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

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

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

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

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

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

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

Project timeframe, how long will your project take.

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

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

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

Consider the following questions when costing out your timeline:

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

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

Financial Projections

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

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

Here are a few costs to include in your budget:

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

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

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

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

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

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

Financing Strategy

How do you plan to fund your project.

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

There are numerous house flipping funding options, including:

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

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

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

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

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

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

About Your Team

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

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

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

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

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

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

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

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

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

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

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

Scenario 1: Your property doesn’t sell

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

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

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

Scenario 3: You’re going to sell the property

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

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

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

Why a House Flipping Business Plan is Crucial

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

Get Your Free House Flipping Business Plan Template

Real Estate Investing & Rental Management | How To

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

Published October 18, 2023

Published Oct 18, 2023

REVIEWED BY: Gina Baker

WRITTEN BY: Melanie Patterson

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

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

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

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

1. Prepare a Real Estate Investment Business Plan

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

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

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

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

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

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

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FREE House Flipping Business Plan Template

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2. set up your house-flipping business operations.

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

Choose the Right Business Entity

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

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

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

Register Your Business With the IRS & Obtain Permits

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

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

Open a Business Bank Account

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

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

Analytics in the Baselane dashboard (Source: Baselane )

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

Visit Baselane

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

3. Find Financing Sources for Your House-flipping Business

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

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

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

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

Real estate investor groups (Source: Meetup )

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

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

4. Hire the Right House-flipping Professionals

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

Some important house-flipping pros to hire include:

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

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

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

5. Identify the Right Properties to Fix & Flip

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

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

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

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

6. Create a Marketing & Lead Generation Plan

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

Marketing Your Fix & Flip Business

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

Consider starting your business with these marketing elements :

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

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

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

Gmail business email account. (Source: Google Workspace )

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

Business card templates (Source: Canva )

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

Visit Canva

Lead Generation Strategies for Your Business

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

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

7. Buy, Rehab, Market & Sell Properties

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

The process of making money flipping houses goes like this:

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

Course platform (Source: Colibri Real Estate )

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

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

Mistakes to Avoid When Starting a House Flipping Business

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

Some mistakes to avoid when flipping houses include:

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

Frequently Asked Questions (FAQs)

What is the 70% rule in house flipping.

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

How much money do you need to start flipping houses?

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

How many houses a year can you flip?

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

Bottom Line

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

About the Author

Find Melanie On LinkedIn

Melanie Patterson

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

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House Flipping Business Plan Template

Written by Dave Lavinsky

House Flipping Business Plan

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

Download our Ultimate Business Plan Template here >

What is a House Flipping Business Plan?

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

Why You Need a Business Plan for Your House Flipping Business

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

Sources of Funding for House Flipping Businesses

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

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

Finish Your Business Plan Today!

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

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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

Competitive Analysis

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

Direct competitors are other house flipping businesses. 

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

House Flipping Business Plan FAQs

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

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

Where Can I Download a House Flipping Business Plan PDF?

You can download a house flipping business plan pdf here.

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

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

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

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

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

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

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

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

How you should prepare to start a house flipping enterprise

Market research and concept, choose a concept.

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

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

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

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

Pick an audience

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

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

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

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

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

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

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

Get familiar with the industry trends

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

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

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

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

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

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

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

However, there are also some declining trends.

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

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

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

Choosing the right property

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Startup budget and expenses

Calculate how much you need to start.

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

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

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

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

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

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

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

Identify all your expenses

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

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

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

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

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

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

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

Business plan and financing

Make a solid business plan.

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

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

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

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

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

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

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

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

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

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

Get financed

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

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

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

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

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

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

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

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

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

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

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

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

Legal and administrative setup

Permits and licenses.

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

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

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

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

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

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

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

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

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

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

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

Business Structure

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

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

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

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

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

Getting started to start a house flipping enterprise

Offer development, craft your offer.

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

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

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

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

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

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

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

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

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

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

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

Determinate the right pricing

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

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

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

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

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

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

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

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

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

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

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

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

Manage relationships with your suppliers

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

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

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

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

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

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

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

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

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

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

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

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

Hire the right people

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Running the operations of your house flipping enterprise

Daily operations.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Revenues and Margins

Know how much you can make.

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

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

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

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

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

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

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

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

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

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

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

Understand your margins

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Implement a strong marketing strategy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Grow and expand

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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House Flipping Business Plan

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• Strategies and Processes
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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
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• 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.

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• How Flipping Works

Where to Start

1. not enough money, 2. not enough time, 3. not enough skills, 4. not enough knowledge, 5. not enough patience, the bottom line.

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Flipping Houses: How It Works, Where to Start, and 5 Mistakes to Avoid

Avoid the pitfalls that novice flippers overlook

The road to real estate riches isn’t all about curb appeal and sold signs. Far too many would-be real estate moguls overlook the basics and end up failing—and this includes flippers . These are individuals who purchase and renovate properties before putting them back on the market to make a profit. If you're going to flip a home, make sure you have the cash, time, skills, knowledge, and patience before you lose out. But how do you avoid these mistakes?

Key Takeaways

• Flipping is a real estate strategy that involves buying homes, renovating them, and selling them for a profit in a short period of time.
• Flipping houses is a business that requires knowledge, planning, and savvy to be successful.
• Common mistakes made by novice real estate investors are underestimating the time or money that the project will require.
• Another error that house flippers make is overestimating their skills and knowledge.
• Patience and good judgment are especially important in a timing-based business like real estate investing.

How Flipping Houses Works

Flipping is a real estate investment strategy where an investor purchases a property with the intention of selling it for a profit rather than using it. Investors who flip properties concentrate on the purchase and subsequent resale of one or a group of properties. Many investors attempt to generate a steady flow of income by engaging in frequent flips.

So how do you flip a building or house? The key is to buy low and sell high. But rather than adopt a  buy-and-hold  strategy, it's important to complete the transaction as quickly as possible. This limits the time that your capital is at risk. In general, the focus should be on speed as opposed to maximum profit. That’s because each day costs you more money in mortgage, utilities, property taxes, insurance, and other costs associated with homeownership.

But the flipping plan often comes with several pitfalls. Any profit you make is typically derived from price  appreciation that results from a hot real estate market in which prices are rising rapidly or from  capital improvements  made to the property—or both. For example, an investor might purchase a fixer-upper in a hot neighborhood, make substantial renovations, then offer it at a price that reflects its new appearance and amenities.

Limit your financial risk and maximize your return potential. This means you shouldn't pay too much for a home. And make sure you also know how much the necessary repairs or upgrades will cost before you buy. You can then figure out an ideal purchase price once you have this information.

There is a rule called the 70% rule. It states that an investor should pay no more than 70% of the after-repair value (ARV) of a property less any repairs that are needed. The ARV is what a home is worth after it is fully repaired. Here's how it works:

• If a home’s ARV is $150,000 and it needs $25,000 in repairs, then the 70% rule means that an investor should pay no more than $80,000 for the home: $150,000 × 0.70 = $105,000 - $25,000 = $80,000. 

Like any other small business, flipping requires time and money, planning and patience, skill, and effort. It will likely wind up being harder and more expensive than you ever imagined. Take it lightly at your peril: If you’re just looking to get rich quickly by flipping a home, you could end up in the poorhouse.

Below are the five mistakes to avoid if you are thinking about flipping a house.

Even if you get every detail right, changing market conditions could mean that every assumption you made at the beginning will be invalid by the end.

Dabbling in real estate is expensive. The first expense is the property  acquisition cost . While low/no-money-down financing claims abound, finding these deals from a legitimate vendor is easier said than done. And if you’re financing the acquisition, you’re going to pay interest. Consider this:

• The interest on borrowed money is tax deductible even after the passage of the Tax Cuts and Jobs Act (TCJA) , but it is not a 100% deduction. Every dollar spent on interest adds to the amount you’ll need to earn on the sale just to break even.
• If you use a mortgage or a home equity line of credit (HELOC) to finance the purchase, only the interest is deductible. The principal, taxes, and insurance portions of your payment are not.

Research your financing options to determine the best product for your needs and to find the right lender. Consider using a mortgage calculator to compare rates that various lenders offer. Paying cash certainly eliminates the cost of interest, but even then, there are holding costs and opportunity costs for tying up your cash.

Even if you manage to overcome the financial hurdles of flipping a house, don’t forget about  capital gains taxes , which will chip away at your profit.

Making a profit is tougher than before and they are dropping. Flippers grossed about $67,900 per property across the country in 2022 or a return on investment (ROI) of 26.9%. That's a 3% decrease from 2021 when flippers earned about $70,000 per property. This doesn't mean you can't make money. it's just that you'll need more care.

Renovation and other costs (real estate taxes, utilities, and other carrying costs) can cut your profit by around two-thirds. Add to that an unexpected structural problem with the property, and a gross profit can become a net loss. So if you plan to fix and sell a house for a profit , the sale price must exceed the cost of acquisition, renovation costs, and holding costs combined.

And remember: timing is everything, especially in real estate.

Flipping houses is time-consuming. It can take months to find the right property. Once you own the house, you’ll need time to renovate . This means you'll have to give up personal time on demolition and construction if you have a day job. If you pay someone to do the work for you, you’ll spend more time than you expect supervising the activity, and the costs of paying others will reduce your profit.

Once the work is done, you’ll need to schedule inspections to make sure that the property complies with applicable building codes before you can sell it. If it doesn’t, you’ll need to spend more time and money to bring it up to par.

Selling the property also requires a great deal of time. If you show it to prospective buyers yourself, you may spend plenty of time commuting to and from the property and in meetings. If you use a real estate agent, you will owe a commission .

For many people, it might make more sense to stick with a day job, where they can earn the same kind of money in a few weeks or months via a steady paycheck, with no risk and a consistent time commitment.

Flipped homes accounted for 8.4% of all home sales in the United States in 2022. This is the highest percentage of flipped homes that were on the market since 2005, according to data published by ATTOM Data Solutions.

Professional builders and skilled professionals, such as carpenters and plumbers, often flip houses as a side income to their regular jobs. They have the knowledge, skills, and experience to find and fix a house. Some of them also have union jobs that may provide unemployment checks all winter long while they work on their side projects.

The real money in house flipping comes from  sweat equity . If you’re handy with a hammer, enjoy laying carpet, and can hang drywall, roof a house, and install a kitchen sink, then you have the skills to flip a house.

But if you don’t know a Phillips-head screwdriver from a flat one, you will need to pay a professional to do the renovations and repairs. And that will reduce the odds of making a substantial profit on your investment.

Flipping is also called wholesale real estate investing,

You must know how to pick the right property, in the right location, at the right price. In a neighborhood of $100,000 homes, do you really expect to buy at $60,000 and sell at $200,000? The housing market is far too efficient for that to occur regularly.

Even if you get the deal of a lifetime like snapping up a house in foreclosure  for a song, knowing which renovations to make and which to skip is key. You also need to understand the applicable tax laws and zoning laws and know when to cut your losses and get out before your project becomes a money pit.

Big-league lenders have also started to seek profits in the flip-loan marketplace, with global investment firm KKR joining other private investment firms seeking a piece of the action.

Professionals take their time and wait for the right property. Novices rush out to buy the first house that they see. Then they hire the first contractor who makes a bid to address work that they can’t do themselves. Professionals either do the work themselves or rely on a network of prearranged, reliable contractors.

Novices hire real estate agents  to help sell the house. Their commissions can eat into your profits (even after changes arising from the National Association of Realtors, which will eliminate advertising buyer's agent commissions on the MLS). Professionals rely on for-sale by owner efforts to minimize costs and maximize profits. Novices expect to rush through the process, slap on a coat of paint, and earn a fortune. Professionals understand that buying and selling houses takes time and that the  profit margins  are sometimes slim.

Do I Need to Have a Cash Offer to Flip a House?

No. Cash can be more attractive to sellers, so you may see more cash offers accepted on home-flipping shows. Nationwide, 62.7% of house flips are purchased with cash. However, many people do finance their house flips. It all depends on the situation.

Which Cities Are the Best to Flip a House?

This depends a lot on what you're looking for and your bankroll. But according to New Silver, which provides capital to real estate investors, the best cities for house flipping are Jacksonville, Atlanta, El Paso, Charlotte (North Carolina), and Hartford (Connecticut).

How Long Does It Take to Flip a House?

The average length of time it takes to flip a house is about four to six months from the purchase date to the selling of the finished home. Keep in mind, though, that each project is different. In some cases, it may take a month or so but others may require heavier work.

It looks so easy! At any given time, a half-dozen shows on television feature good-looking, well-dressed investors who make the flipping process look fast, fun, and profitable. But making a nice profit quickly by flipping a home is not as easy as it looks on TV. Novice flippers can underestimate the time or money required and overestimate their skills and knowledge. If you are thinking about flipping a house, make sure you understand what it takes and the risks involved.

Internal Revenue Service. “ Publication 5307: Tax Reform Basics for Individuals and Families ,” Pages 5–6 (Pages 7–8 of PDF).

ATTOM. “ Home Flipping Remains Up in 2022 Across U.S. But Gross Profits Fall to Another Low ."

KKR Media Center. “ Toorak Capital Partners Closes on Increased $500 Million Capital Commitment .”

National Association of Realtors. " National Association of REALTORS® Reaches Agreement to Resolve Nationwide Claims Brought by Home Sellers ."

New Silver. " Best Cities to Flip Houses in 2023 ."

Flipping Prosperity. " How Long Does it Take to Flip a House? Complete Timeline ."

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How To Create A House-Flipping Business Plan [& 5 Mistakes to Avoid]

Brett Helling is the founder of Gigworker.com. He has been a rideshare driver since early 2012, having completed hundreds of trips for companies including Uber, Lyft, and Postmates.

Since that time, he has expanded his knowledge into the Gigworker site, as well as writing the book Gigworker: Independent Work and the State of the Gig Economy Paperback,  now available on Amazon .

Diversifying your investments is proving to be more crucial than ever. With so many ideas floating around, it gets tricky to know which kinds of business ideas are more profitable and less risky.

That said, one thing is for sure, house-flipping businesses are booming! 

If you settled on starting a house-flipping business but don’t know how to go about it, don’t worry. We’ve got you covered!

Today, you’ll learn all the tips and tricks for developing a thorough house-flipping business plan. We’ll cover all the basics, from what it is and why you need it, to a detailed outline with all the elements you should include. 

• What is a House Flipping Business Plan and Why Do You Need One?
• Executive Summary
• Mission Statement
• Market Analysis
• Budget and Financial Projections
• Marketing and Research
• Exit Strategies and Backup Plans
• Benefits of Writing a House-Flipping Business Plan
• Inadequate Finances
• Poor Time Management
• Lack of Experience
• Lack of Education 
• Wrapping Up

A house-flipping business plan is a detailed description of the tactics used by a particular company when it comes to flipping different properties. Yes, a great house-flipping plan can be applied to many more properties than you think. 

Crafting a detailed business plan can boost the ROI of your house-flipping business, making it more profitable while using the same exact resources. But how does that work? 

By managing the resources right, decreasing the number of delays, and choosing the best property based on research and data, not sheer luck.  

House Flipping Business Plan Outline

Here are the five most important parts of a successful house-flipping business plan. Make sure to include all of them if you want to attract the attention of a real estate investor and get the money you need.

The executive summary is essential to get the attention of the real estate investors you’re targeting. It works as an elevator pitch for your whole house-flipping business plan. That’s why you have to get it right!

Imagine you’re presenting the plan to someone who’s in a hurry and won’t have the time or the desire to read every single detail. 

Well, that’s exactly why you need a succinct executive summary covering all the facets of the business plan, giving some context to each one. 

They should get a basic understanding of your intentions and how you plan on bringing in a profit.

Pro Tip: Write this part AFTER you wrote the entire thing. It will be easier and better.  

What are your core ideas? Why have you started a house-flipping business? What are your company’s ground rules? 

The answer to all these questions should be covered in this part of the business plan. This part shouldn’t be longer than one page, so be concise and clear with your words. 

If you are flipping houses without doing any market research, you’ll probably go bankrupt faster than expected. All house-flipping businesses base their transactions on historical data, not on their ideas of how the market works. 

The first thing you should cover in your market analysis is the area you’re trying to buy a property. If you’re new to that city, try using at least one year’s worth of data to better understand what’s going on. Export price data, price changes in the area, sale data, and the average time a property is sold. 

After this, you can tell if the area is profitable. If it is, continue researching the real estate market for more precise metrics. Start by indexing the data about what types of properties are the most popular in the area. Also include a demographics section in your analysis. 

Most experienced real estate agents will tell you that you can find a demographic pattern in every neighborhood. For example, if you’re targeting young buyers, you won’t search for a property in a rich area with two-story houses but rather a single-bedroom apartment.

All this data can be found on resources like Realtor.com , Census , or the official website of the US Department of Housing and Urban Development . 

While using these tools, make sure to put the data in the right state or region you’re searching for. Many beginner house flippers make the mistake of believing that the prices don’t vary much, but house flipping in Virginia can be very different from house flipping in Maryland.  

Every flip you do has to have its own financial plan. Without one, your house-flipping company will soon be just another flop, turning all your efforts into bankruptcy statistics.

Before you consider buying the property, calculate all the flipping costs. After you get that, add another 20% to create the budget for your flip. You need to add those 20% because, in most cases, your flip won’t fall entirely within the budget you allocated. You might have problems with the labor force, the materials you buy might not fit the place you anticipated, you’ll have to pay taxes you didn’t even know existed, and so on. All these expenses must be covered if you want to sell that house for a profit. 

Also, creating a realistic budget will increase the chances of getting a loan to flip the house . In most cases, banks and hard money lenders don’t need a business plan to give out a loan. But when they do, you should do everything perfectly, get the loan, and make some money! 

You can’t sell a house if nobody knows you’re selling it. A great house-flipping business plan must include the work of your marketing department. This way, you won’t have to outsource the process of selling the properties to a real-estate agency, keeping a better portion of the profit for you and your employees. 

First of all, determine the target market. Use the market research you did earlier to decide what category of people you’re selling the house to and direct all your resources toward them. If you’re working with young adults, for example, place ads on Instagram, Twitter, YouTube, or even TikTok! 

Also, don’t forget to cover all the marketing fronts. Direct mail marketing, digital marketing, networking, and even real estate investment clubs. All these instruments will help you sell the property faster, preparing you for another investment opportunity. 

What will you do with the property if you can’t sell it? If you can sell, for how much and when can it go? If you decide to rent it out, will the rent cover all the carrying costs of the house? 

All these questions must be answered in this part of your house-flipping business plan. 

For most beginners, writing a business plan for every house you flip might seem like a silly idea, but in reality, it is necessary. Here are the benefits of writing a house-flipping business plan for every property:

• Clear Roadmap: With a business plan, you’ll always know what to do and when. You won’t be in the position of figuring it out on the go. Also, by having a clear roadmap from the beginning, you’ll be less likely to stray from your objectives and more likely to make rational decisions. 
• Risk Management: A great business plan will make you understand most of the risks before encountering them. By understanding these risks, you’ll be able to mitigate them, developing strategies to either cope with the complications or avoid them in the first place. 
• Attract Investors: If you plan on attracting outside investors to complete a project, a well-written business plan can increase your chances of getting the needed finances. It demonstrates your professionalism and ability to create a solid strategy. If you can guarantee them a good ROI, you’ll receive your investment capital.
• Saving Resources: The best business plans won’t use all your money, leaving a small portion as a cushion in case of unforeseen fees or taxes you have to pay. Sometimes, you won’t even have to use those 10% or 15% of your budget. This can significantly raise your profit margin. 

Five House-Flipping Mistakes You Must Avoid

Any mistake in house flipping can reduce profit margin. Here are some of the most dire mistakes you should avoid and how to avoid them:

Running out of capital while flipping a house is probably your worst nightmare. Not having the funds to complete the project can lead to a catastrophic decrease in value, meaning your profit margins will decrease. 

If you invested your personal savings, it’s okay, you can cope with that. But if you have two or three bank loans or ten business partners, you have to turn a profit or you might face litigation.

The longer it takes to complete a project, the more money you lose. While materials and the property have a fixed cost, everything else is a variable. The longer you have a renovating crew on site, the more you’ll have to pay in carrying costs, like taxes, utilities, and fees. 

Real estate investing is mostly about experience and knowing market trends without doing any research. 

Beginners don’t have that advantage because they’ve just entered the flipping business. That’s why you should consider pairing with an experienced real estate agent, at least for your first few flips, to get all the insider tips and tricks of the industry. 

The real estate industry is an ever-changing market that pushes you to adapt and improve daily. Having formal education in business is great, but learning has to be a continuous process. 

Read articles and books , listen to podcasts, watch videos and house-flipping shows , and learn from those who are more experienced than you are.

You may not be a millionaire after your first fix and flip. Business goals should be set for years ahead, not quarters. If you’re in the flipping business to quickly grab some cash and get out, you’ll probably end up disillusioned and in debt. Be patient, and the life-changing deal will come. 

Writing a strong and detailed house-flipping business plan should set you up for a successful trade. Starting a fix-and-flip deal without a detailed plan would be considered ill-advised by experienced real estate agents, to say the least. 

Hope this article rounded up all the information necessary to start writing your own business plan. Of course, you can also use a house flip calculator , but make sure to use all the data according to the reality of your area. 

If you found this guide useful, don’t hesitate to share it with your friends. And if you’ve gone through this before, leave a comment describing your first fix and flip deal!

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House Flipping Business Plan Template

Written by Dave Lavinsky

House Flipping Business Plan

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

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

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

Executive Summary

Business overview.

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

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

Product Offering

SW Redevelopment will be able to provide the following services:

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

SW Redevelopment will primarily offer single-family residential properties.

Customer Focus

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

Management Team

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

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

Success Factors

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

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

Financial Highlights

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

Specifically, these funds will be used as follows:

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

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

Company Overview

Who is sw redevelopment, sw redevelopment history.

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

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

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

Since incorporation, the company has achieved the following milestones:

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

SW Redevelopment Services

Industry analysis.

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

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

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

Customer Analysis

Demographic profile of target market.

The precise demographics for Phoenix, Arizona are:

Customer Segmentation

We will primarily target the following customer segments:

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

Competitive Analysis

Direct and indirect competitors.

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

Property Fortune Flippers

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

House Flippers

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

Equity Investors

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

Competitive Advantage

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

Marketing Plan

Brand & value proposition.

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

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

Promotions Strategy

The promotions strategy for SW Redevelopment is as follows:

Direct Mail

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

Open House Events

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

Website/SEO

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

Social Media

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

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

Operations Plan

The following will be the operations plan for SW Redevelopment.

Operation Functions:

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

Milestones:

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

3/202X            Finalize lease agreement

4/202X            Design and build out SW Redevelopment

5/202X            Hire and train initial staff

6/202X            Kickoff of promotional campaign

7/202X            Launch SW Redevelopment

8/202X            Reach break-even

Financial Plan

Key revenue & costs.

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

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

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

Funding Requirements and Use of Funds

Key assumptions.

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

Financial Projections

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

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

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

What are the Main Types of House Flipping Businesses?

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

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

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

What are the Steps To Start a House Flipping Business?

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

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

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

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

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

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

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

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

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

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

• How to Start a House Flipping Business

Other Helpful Templates

Cleaning Business Plan Template Mortgage Broker Business Plan Template

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

Makenna Crocker

6 min. read

Updated February 7, 2024

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

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

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

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

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

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

• Conduct market research

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

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

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• Financials and funding

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

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

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

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

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

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

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

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

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

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

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

See why 1.2 million entrepreneurs have written their business plans with LivePlan

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

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• 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.

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House Flipping Business Plan

Have a keen eye for distressed properties and a knack for renovations?

Well done! You’ve stumbled upon a cool business idea. It’s time for you to start an exciting journey into the world of house flipping!

However, you need to think about resources and funding for navigating the ins and outs of flipping houses.

Also, you need to specify if there’s a prominent market for your business to be successful, what potential patrons expect from businesses like yours, and how many competitors you’ll encounter.

Surprisingly, answering all these questions is all part of writing a thorough business plan. Here is the house-flipping business plan template , which will surely help you!

In this guide, you can explore the essential elements you need to know for a well-written business plan. It will provide business strategies and insights to kickstart your flipping houses business plan writing.

Let’s jump in together and discover the secrets to crafting a house flipping plan.

Key Takeaways

• Write an impactful executive summary that outlines your marketing approach and team expertise to attract potential investors or partners.
• Conduct comprehensive market analysis to highlight industry trends, target audience needs, and customer preferences.
• Consider potential contingencies & emergencies while making realistic financial plans for sales revenue, costs, and profit forecasts.
• Use tools for SWOT analysis to evaluate your strengths, weaknesses, opportunities, and threats for informed decision-making.
• Highlight your flipping business services and elevate your property values in the market by incorporating strategic USPs.
• Clearly add flipping houses business descriptions to ensure efficient project management and consistent, high-quality renovations.
• Scrutinize the competitive landscape, and identify competitors, to create strategies that support your business’s competitive advantage.

Why do you need a house-flipping business plan?

A well-crafted business plan is a foundation for planning, managing, and growing a house-flipping business. It provides a detailed roadmap that confidently navigates you to the complexities of the real estate industry.

Here are a few benefits you must know:

• A professional plan guides your flipping-house business in a strategic direction and gives clarity to your business idea, outlining business strategies, goals, and steps to enhance your credibility.
• It can crystalize your vision for the house-flipping venture and ensure that you clearly understand the target audience, including trends, customer preferences, and competitors.
• An actionable plan offers a comprehensive view of your business’s operational aspects and helps you identify potential risks and challenges in the house flipping industry.
• You can plan to seek funding or partnerships with the estimated startup costs, operational expenses, and profit margins.
• A detailed business plan is a legal armor that prompts you to consider legal requirements and obtain necessary permits.

So, having a flipping house business plan is a game changer in the ever-evolving real estate landscape. Now, let’s move forward to create an interesting business plan without any further ado:

How to write a business plan for your house-flipping business?

1. get a business plan template.

Before you start writing a business plan for your house-flipping business, consider using a business plan template first.

It serves as a structured format and helps you cover all the necessary elements in your business plan, saving you time and effort.

However, it is an effective way to organize your thoughts and cohesively prepare a professional document. It guides you on what to include in each section according to your business needs and preferences.

If you are new to business planning or searching for a well-presented template, choose Upmetrics’ business plan template today. It is the best-suited and valuable tool for your flourishing house-flipping business!

Free Business Plan Template

Download our free house flipping business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

2. Write an executive summary

An executive summary is a brief overview of your entire house-flipping business plan.

It is the initial section of the professional plan and highlights the key points of your house-flipping business, from mission-vision statements to financial projections.

This executive summary section should be clear, concise, and engaging as it attracts readers to delve further into your plan.

Start your summary with a quick introduction of your house-flipping business, including who you are and what type of house-flipping business you are running.

Here is an example of a business introduction using Upmetrics:

After that, discuss below key elements in the summary:

• Mission & Vision Statement
• Market Opportunity
• Services Offered
• Management Team
• Financial Summary
• Call to Action

3. Prepare a business overview section

Now, provide detailed information about your house-flipping business. It includes ownership, legal structure, office location, business history, and other such business-related facts.

Initially, introduce what type of business you are operating. For example, it will be one of the below types of house-flipping businesses:

• Single-family Home Flipping: It emphasizes on renovating and selling a single property acquired at a lower cost for a profit.
• Multi-unit Complex Flipping: It focuses on multi-unit properties where house flipper rehabs all the units in the multi-unit complex, with an option to sell units individually or the entire complex
• Multi-investor Flipping: It includes house flipping among multiple investors before moving to the fix-and-flip stage.

Provide the history of your house-flipping company. You can also add business goals and milestones you have achieved. Take the below as an example,

Do not forget to include the names of your business owners/partners and your future goals as this section gives an in-depth overview of your business.

4. Conduct a market and industry analysis

Starting a house-flipping business requires a strategic roadmap, and the key to developing that roadmap lies in a comprehensive industry and market analysis.

This chapter highlights the clear picture of your house-flipping industry. It serves the broader real estate market, which is affected by economic trends, market conditions, interest rates, and regional factors.

Here are certain key components to include:

Market share and growth potential

Identify your Targeted Available Market(TAM) and measure the viability of your business.

Consider market growth factors and financing availability to analyze the potential shares in the real estate market.

Industry trends

The dynamics of the housing market and emerging trends can potentially influence buying and selling patterns.

Technological advancement in the real estate market such as virtual tours and online property platforms has helped house flippers to reach a wider audience and upgrade property visibility.

Navigating the ideal target market

In this section, you can give details of the customers you serve or expect to serve. House flippers, prospective homeowners, contractors, and real estate agents are a few examples of customer segments.

Do proper market research and try to create a buyer’s persona by exploring the psychographic and demographic details of the ideal customer.

Navigate their needs, preferences, and behaviors to customize your strategies, property selections, and renovation decisions to align with market demands. Here is an example written using Upmetrics’ AI writing assistant :

For Kent & Flippers house-flipping business, our target market cuts across people of different classes and people from all walks of life. We are coming into the real estate industry with a business concept that will enable us to 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 heads 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 interests wherever they are located in the United States of America.

Below is a list of the people and organizations that we have specifically designed 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

Competitor analysis

Now, it’s time to identify the top competitors in the house-flipping businesses. Get details of their businesses, and monitor their strengths and weaknesses.

It is a very important part of market research that helps you evaluate the real estate competitive landscape. Conduct a SWOT analysis to find your business position.

Demonstrate your competitive edge and present to potential stakeholders that your business is set for success in the challenging market.

Want to Perform Competitive Analysis for your Business?

Discover your competition’s secrets effortlessly with our user-friendly and Free Competitor Analysis Generator!

5. Describe your house-flipping services

After understanding the market trends, give details about your house-flipping services. These services enclose a range of activities aimed at buying, renovating, and selling properties for a profit.

Your house-flipping services might be any of the following:

• Property Assessment
• Renovation Project Management
• Design Consultation Services
• Project cost evaluation
• Broker opinion of valuation
• Marketing property for lease/sale

Effectively communicate your services to the customers by sharing precise pricing plans and service descriptions with project timelines. For instance,

Additionally, state other additional services that you execute for house flips or property management.

6. Prepare marketing and sales strategies

Developing the sales and marketing section involves summarizing the strategy to entice new users and retain existing ones.

It describes the methods and approaches to gaining and keeping customers for the house-flipping business. Some of the sales and marketing strategies for property-flipping companies are:

Unique Selling Points (USPs)

Specify the USPs of each property that set you apart from the other house-flipping businesses. Emphasize a few aspects such as historical features, energy-efficient upgrades, or a prime location.

Professional Branding

Having a website and a memorable logo can establish a strong and professional brand that spreads a wider reach. It builds trust among potential customers. Showcase all your services with virtual tours and 3D imaging.

Social media advertising

Leverage social media channels (Facebook, Instagram, Twitter) to target particular audiences. Generate visually appealing ads and content to draw interest and drive traffic to your property listings. It helps you generate leads.

Email marketing

Create an email list of your potential clients. Regularly give updates on new property, renovation progress, and recent offers. This marketing tactic can nurture leads and keep your target market engaged.

Networking and partnerships

Always try to build strong relationships with real estate agents, mortgage brokers, and other professionals. Networking can help with referrals and partnerships that improve your reach.

Organizing open houses and events

Allow potential buyers to experience the property firsthand by hosting open houses and events. It gives an opportunity to answer queries, address concerns, and build a sense of urgency.

7. Introduce leadership or management team

A powerful management team is essential to showcase your house-flipping business’s ability to thrive in the industry.

Letting your readers or investors know about your business leadership or key managers will help them have a clear idea of who is running your house-flipping company.

Highlight your key managers’ and project managers’ backgrounds, including those skills and experiences that ascertain their ability to grow a business. Here is an example of mentioning the management team using Upmetrics:

Also, discuss the compensation plan in this section and it includes salaries, incentives, or employee benefits. Not only that, mention any key advisor or consultant who adds credibility to your business idea.

8. Outline your operational plan

Now it’s time to emphasize an effective description of a business operational plan as this section highlights key areas such as staffing, operational processes, and facilities/technology.

Operational excellence is essential for fulfilling your goals and commitments to clients and ensuring optimal results. Briefly outline operational planning, underscore how it directly impacts the quality of services, and pique the reader’s interest.

Wondering what to add to your house flipping operational plan? Well, here is a distinct section:

Start by introducing your dedicated team and their roles for seamless operations. Also, describe your recruitment procedure, training sessions, and methods for fostering a collaborative and skilled workforce.

Here is an illustration of a house-flipping company’s staffing requirement using Upmetrics:

Operational process

Detail the intricacies of your property acquisition, renovation, and sales processes. Define the operational framework and delve into the systematic approach to project management, quality control, and timeframes.

Quality assurance

Discuss the inspection protocols, compliance verifications, and ongoing improvement initiatives to show your commitment to high standards and quality control measures.

Facilities/Technology

Describe how innovative tools and platforms improve your efficiency in project management, real estate property scouting, house flips, designs, and communication.

9. Create a financial plan

A well-structured and in-depth financial plan comes last in the house flipping plan but is the most exciting section for investors.

It is a detailed blueprint of all the cash flow and revenue streams, initial startup costs, and how these expenses will be covered through the earned profits.

This financial projection has a significant value in terms of whether you secure funding or not. So, mention all the below key components in your plan:

• Profit and loss statement
• Sales forecast
• Cash flow statement
• Balance sheet
• Break-even analysis
• Financial needs
• Tax considerations
• Business ratios
• Exit strategy

From the above, you can identify the funding requirements and evaluate the funding resources for your house-flipping company, including bank loans, SBA-guaranteed loans, real estate investors, and personal savings.

However, calculating all the financial statements from scratch can be an overwhelming task. In addition to that you have to work on graphs and visuals for the clarity of your financial plan.

Not to worry; here is an easy way. Use Upmetrics’ financial forecasting tool to formulate all the financial aspects for starting a real estate flipping business.

This tool guides you through the projected financial statements and helps you generate key reports and graphs that can be easily downloaded. Here is an example of a projected cash flow for 3 years with the help of Upmetrics:

Additionally, you can offer stakeholders a transparent view of your business’s fiscal health and growth potential with a deeper exploration of your financial strategy.

Well, having realistic financial projections at your hand can help you evaluate the financial sustainability of your property-flipping business.

House flipping Industry Highlights 2024

Flipping houses continues to be a money-making strategy for a real estate investor. So, let’s go through some house-flipping industry trends and statistics:

• According to Forbes , the housing market will shift positively by the year’s end. The talk of decreased mortgage rates will provide more opportunities to invest in real estate, whether for home flipping or renting.
• Fix-and-flip profits aren’t as high as in 2022, but house flippers can still make great returns in the next few years. They generated an average gross profit of 22.5% compared to the first quarter of 2023.
• A home-flipping report in the U.S. shows that 84,350 single-family homes and condominiums were flipped in the second quarter of 2023. It is significantly higher than the first quarter of the year.
• In the U.S. market, Texas and Florida are the two major hotspots for flipping houses and are most popular among house flippers.
• Depending on location and other external factors, successful house flips can yield returns varying from 10% to 100% or even more of the initial real estate investment.

Refine and present a house-flipping Business Plan

Once you have drafted your entire house-flipping plan, read and re-read your documented plan to make sure that it is error-free. You have to feel confident about your flipping business plan before presenting it to your audience.

In addition, tailor your documented plan to serve different audiences to enhance communication. For instance,

Real estate Investors: For seeking funding, keep a professional tone in your plan and include all the growth potential, profitability, and ROI data.

Banks: Showcase thorough financial details and emphasize economic stability. Also, address potential risks and indicate risk mitigation plans.

Business partners or lenders: Highlight collaboration benefits and how they can add value to their personal growth. Focus on goals for mutually profitable partnerships.

Well, don’t forget the importance of visual aids and digital representation here. Use engaging visuals, graphs, interactive elements, and multimedia to demonstrate property transformations.

Thus, integrate all the above things in a clutter-free and visually appealing manner to create a digital presentation of your plan.

After that, it’s time to final check and email your plan to the intended audience. And celebrate your efforts and dedication to drafting a captivating narrative.

Download sample house-flipping business plan

Are you ready to start a house-flipping business plan writing? And want to get help with your business plan? Well, here you can download our free house-flipping business plan pdf and start writing.

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

Import data into your editor and start a house-flipping business plan writing.

The Quickest Way to turn a Business Idea into a Business Plan

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

Write your business plan with Upmetrics

With Upmetrics, you will get easy-to-follow steps, 400+ sample business plans , and AI support to streamline your business planning approach.

Our financial forecasting tool will help you create accurate financial forecasts for 3 or more years if you’re not good at finances.

Whether you’re venturing into a new business or aiming for expansion, Upmetrics provides resources and valuable insights to build successful and professional business plans that perfectly align with your objectives.

Let’s embark on a journey to real estate triumph!

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Frequently asked questions, what financing options are available for my flipping business.

Several financing options are available to you in order to fund your house-flipping business:

• Hard money lenders
• Private money lenders
• Home Equity Line of Credit (HELOC)
• Seller financing
• Business credit cards
• Crowdfunding

Can I Use My Business Plan to Attract Investors or Partners?

Definitely! A well-crafted business plan can be a powerful tool to attract investors or partners for your house-flipping business. Here’s a list of reasons:

• Showcases viability
• Highlights return on investments (ROI)
• Outlines marketing and sales strategies
• Presents risk mitigation tactics
• Demonstrates exit strategies
• Facilitates strategic partnerships

What are the Key Elements of a Successful House Flipping Business Plan?

Creating a successful house-flipping business plan involves the following key elements:

• Executive summary
• Business overview
• Market and industry analysis
• House-flipping services
• Marketing and sales strategies
• Management team
• Operational plan
• Financial plan

What Insurance Policies Should Be Included in the Business Plan?

Local laws suggest that purchasing insurance policies is very important for any business. So, as per the SBA guide , include below six common types of business insurance in the plan:

• General liability insurance
• Product liability insurance
• Professional liability insurance
• Commercial property insurance
• Home-based business insurance
• Business owner’s policy

How Often Should I Review and Update My House Flipping Business Plan?

It is necessary to regularly review and update your house-flipping plan to ensure its relevance, accuracy, and alignment with your evolving business objectives. Follow the below guidelines:

• Quarterly assessments for minor adjustments
• Semi-annual reviews for an extensive analysis of market trends and strategy
• Specific annual update to capture changes in the market
• Revamp your business plan whenever significant events occur
• Ensure your plan is up-to-date while seeking funding or partnerships

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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House Flipping Business Plan Template & Guidebook

Are you a new house flipper looking to succeed in the competitive real estate market? Downloading our The #1 House Flipping Business Plan Template & Guidebook is the first step towards making your home flipping dreams a reality. This guidebook provides everything you need to create an effective and comprehensive business plan, from developing your strategy and setting realistic goals, to financing and marketing your business. Find out how this essential tool can help you make smart decisions as you get started flipping houses.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable House Flipping Business [11 Steps]
• 25 Catchy House Flipping Business Names:
• List of the Best Marketing Ideas For Your House Flipping Business:

How to Write a House Flipping Business Plan in 7 Steps:

1. describe the purpose of your house flipping business..

The first step to writing your business plan is to describe the purpose of your house flipping business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a house flipping business:

Our mission is to acquire, renovate, and resell homes in a way that maximizes profit while preserving and adding value to the local community.

2. Products & Services Offered by Your House Flipping Business.

The next step is to outline your products and services for your house flipping business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your house flipping business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your house flipping business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your house flipping business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a house flipping business?

• Tools - Hammer, basic carpenter tools, sander, saws, levels, etc.
• Supplies - Paint, paint brushes, drop cloths, tarps, wood glue, wood screws, nails, etc.
• Permits - Depending on your city or state you may need to obtain permits for plumbing and electrical work.

5. Management & Organization of Your House Flipping Business.

The second part of your house flipping business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your house flipping business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. House Flipping Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a house flipping business varies based on many different variables, but below are a few different types of startup costs for a house flipping business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your house flipping business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your house flipping business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your house flipping business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About House Flipping Business Plans:

Why do you need a business plan for a house flipping business.

A business plan is essential for a house flipping business because it will help you determine your goals, create an action plan for achieving those goals, assess the feasibility of the project, and project your expected profits. It will also help you secure necessary financing from lenders, investors, and other sources. A business plan can be used to track progress during the course of the project and make adjustments as needed. Finally, it will ensure that all stakeholders are on the same page with regards to expectations and strategy.

Who should you ask for help with your house flipping business plan?

You should ask a business consultant, accountant, lawyer and/or real estate agent for help with your house flipping business plan. Additionally, you can consult with local government resources such as the Small Business Administration or your local Chamber of Commerce to find resources and support for starting your business.

Can you write a house flipping business plan yourself?

Yes, it is possible to write a house flipping business plan yourself, provided you have the necessary skills and knowledge. The plan should include detailed research into the real estate market, projected expenses and revenue, marketing strategies and a timeline for completion. Additionally, you will need to include financials such as an income statement, balance sheet and cash flow statement. If you're not sure where to start, there are many resources available online with templates and information on how to put together a business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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House Flipping Business Plan

Published Dec.22, 2016

Updated May.13, 2024

By: Noor Muhammad

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Table of Content

What Is a Business Plan For House Flipping?

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

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

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

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

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

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

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

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

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

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

Executive Summary

Company overview.

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

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

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

Key Objectives

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

Mission and Vision

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

Financial Summary

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

Mission Statement

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

Ownership & Legal Structure

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

Location & Facilities

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

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

Company History & Ownership Team

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

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

Industry Analysis

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

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

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

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

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

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

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

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

Customer Analysis

Flippy’s primary target buyer groups are:

Target Customer Needs

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

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

Competitive Analysis

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

Primary Competitors

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

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

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

Competitive Advantages

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

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

Marketing Plan

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

1. Retail Buyer Marketing Tactics

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

2. Professional Marketing Channels

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

3. Brand Awareness Initiatives

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

Marketing Budget

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

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

Marketing Budget Breakdown

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

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

Operations Plan

Property acquisition strategy.

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

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

Properties meeting these guidelines will be sourced through:

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

Renovation Process & Specifications

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

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

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

All renovation projects will aim to include:

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

Sales & Listing Process

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

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

Organization & Management

Company leadership.

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

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

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

Projected Staffing Plan

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

Year 1: Co-Founders, Administrative Assistant

Year 2: Hire Project Manager, Acquisitions Specialist

Year 3: Add Two Renovation Staff Members

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

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

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

Use of Outside Partners & Resources

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

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

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

Immigration business plan

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

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

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

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

Projected Income Statements

Notes & assumptions.

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

Use of Profit

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

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

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

Exit Strategy

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

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

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

OGSCapital for Your House Flipping Business Plan

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

We collaborate directly with clients to develop tailored: 

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

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

Frequently Asked Questions

What is the profit of flipping.

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

What business entity is best for flipping houses?

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

• Personal liability protection
• Tax flexibility
• Ease of management

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

Download House Flipping Business Plan Sample in pdf

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

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Home » Sample Business Plans » Real Estate

How to Write a House Flipping Business Plan [Sample Template]

Are you about starting a house flipping business? If YES, here is a complete sample house flipping business plan template & feasibility study you can use for FREE . If you are looking to start a house flipping business and do not know how to go about it, then you have got to be sure of the source of information you have.

The internet is a very good place to do just that. After you have passed that stage, the nest thing would be to check out the options you have and follow it through. Also, chief amongst the steps that you will need to take is writing a business plan

A Sample House Flipping Business Plan Template

1. industry overview.

The real estate industry is one of the many industries that is a major contributor to the growth of the economy of many nations of the world and house flipping is one of the many businesses in the value chain of the real estate industry.

As a matter of fact, a real estate agent (flipper) who is engaged in house flipping business can actually become a millionaire ‘overnight’ from just one house flipping deal. Little wonder the industry is responsible for making many instant millionaires in the united states of America, as well as the rest of the world.

House flipping is all about purchasing a property that is put up of sale, renovating the property and then resell the property with the sole aim of making property. Usually, house flippers sell the home at a price that will cover both all the expenses incurred and provide enough profit to compensate for the time invested in the deal.

The profit could be big and it could be smack; it all depends on the how good you are able to makeover the property and also the location of the property.

The Bureau of Labor Statistics (united states of America) projects 11.1 percent job growth for real estate industry between 2012 and 2022, which is about as fast as average. During that time, an additional 38,000 jobs will open up in the industry.

Statistics has it that house flippers in the United States of America flipped about 156,862 single-family homes in 2013 alone. It is on record that the number of house that was flipped was up 16 percent from 2012 and 114 percent from 2011. Generally, the average gross profit for a completed house flip deal or more accurately, the difference between the first sales price and the second sales price is about $58,081.

The real estate industry is highly regulated in the United States of America and anyone who aspires to become a house flipper or start a real estate agency (company) must apply and obtain a license before they can legally operate in the industry.

But as a lawyer, you can handle real estate deals in some states in the US and make your commission without operating as a licensed real estate agent. In order to obtain a license as a real estate agent in the US, you are required to write and pass your state’s real estate exams.

The practice in the United States of America is that, a house flipper or real estate licensed agent is required to disclose to prospective buyers and sellers the nature of their relationship within the transaction and with the parties involved in the deal.

Just like all other investment vehicle, there are potential down sides that you need to look out for as a house flipper. One of the major risks in house flipping businesses is a sudden down turn in the economy. Selling properties could take a period of two to three years from conception to completion depending on the size of the project and the cash flow.

As a matter of fact, some projects could even take much longer than that. Because of the time frame involved in renovating a property from start to finish, loads of un–anticipated things could crop up and it fall in the thick of property cum economy downturn which is not good for the business considering the investment that has gone into the project.

Another factor that is of major concerns and a threat to house flipping business generally could be cost increase as a result of inflation, currency devaluation and economic challenges. Unforeseen delays from the part of government agencies, litigation and also delays from contractors could lead to substantial cost increase especially if the project is heavily dependent on bank loans.

If perhaps during this period there is a change in the supply and demand dynamics of the property sector the project could be affected negatively.

As a house flipper, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to properties; you should be able to convert a slum into a beautiful city if indeed you want to become a major player in the real estate industry.

2. Executive Summary

Joyous Homes® House Flippers, LCC is a property development company that will major in house flipping. Our head office will be located in a standard office facility in 415 Madison Avenue New York, NY 10022, USA. Our aim of starting this house flipping business is to work in conjunction with the government of the United States of America to deliver affordable homes and properties to all class of people in the United States of America.

Although our Head Office will be located in New York City, but we will have our branch offices in major cities in all regions of the United States of America – within the first two years of operation we would have set up our offices in the following locations; Los Angeles, Florida, North Dakota, Boston, Dallas and Washington.

Joyous Homes® House Flippers, LCC is going to be a self-administered and a self-managed real estate investment trust (REIT). We will work towards becoming one of the largest house flipping companies in the United States of America with active presence in major cities.

When are quite aware that house flipping business requires huge capital base, which is why we have perfect plans for steady flow of cash from private investors who are interested in working with us. We can confidently say that we have a robust financial standing and we are ready to take on any opportunity that comes our way in the real estate industry.

As part of our plans to make our customers our number one priority and to become the leading house flipping company in the United States of America, we have perfected plans to secure highly sellable properties that can favorably compete with the best in the industry at an affordable and reasonable price that will guarantee that we make good profit.

Joyous Homes® House Flippers, LCC have overtime perfected plans that will help us to become a specialist in turning slums into beautiful cities and turning a run –down and dilapidated building into a master piece. And that hopefully will be our brand and signature.

Joyous Homes® House Flippers, LCC will be owned majorly the Mrs. Joyce Sinclair and family. Joyce Sinclair is a property guru that has worked with top Real Estate Companies in the United States of America for many years prior to starting her own business.

Other investors with same investment ideology whose name cannot be mentioned here for obvious reasons are going to be part of the business especially as it relates to pooling cash together for property acquisitions and renovations.

3. Our Products and Services

Joyous Homes® House Flippers, LCC is set to run a standard and thriving house flipping business within the scope of the real estate industry in the United States of America. Our intention of starting a house flipping business is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offering are listed below;

• Exchanging property / House Flipping (Our Core Business Offering)
• Facilitating a Purchase — guiding a buyer through the process.
• Property Management
• Auctioning property
• Preparing contracts and leases.
• Lists the property for sale to the public
• Provides the seller with a real property condition disclosure (if required by law) and other necessary forms.
• Holds an open house to show the property
• Ensures that buyers are pre-screened and financially qualified to buy the property
• Selling of Fully Furnished Properties
• Selling of Landed Properties
• Real Estate Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our vision is to become one of the top 15 house flipping companies in the United States of America with the first 10 years of starting Joyous Homes® House Flippers, LCC.
• Our mission and values are to help people, businesses and property owners and clients in the United States of America and throughout the world realize their dreams of owning properties, or renting properties in the United States of America.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the real estate industry, as a matter of priority, we have decided to create a structure that will allow for easy growth for all our employees and also we have created platforms that will enable us attract some of the best hands in the industry.

Joyous Homes® House Flippers, LCC is fully aware of the modus operandi in the real estate industry, hence adequate provision and competitive packages has been prepared for independent sales agents. Our marketing department will be responsible for managing this aspect of our business structure.

Below is the business structure of Joyous Homes® House Flippers, LCC;

• Chief Executive Officer

Project Manager

• Company’s Lawyer / Secretary

Admin and HR Manager

• Head of Construction
• Head of Assets Management
• Head of Acquisition and Disposition
• Business Developer / Sales and Marketing
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervise projects
• Ensure compliance during project executions
• Providing advice on the management of projects
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represent the organization’s interest at various stakeholders meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.

Company’s Lawyer / Secretary / Legal Counsel

• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial / securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develop company policy and position on legal issues
• Research, anticipate and guard company against legal risks
• Represent company in legal proceedings (administrative boards, court trials et al)
• Play a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Head, Acquisitions and Dispositions

• Manages overall acquisitions and dispositions
• Identifies and analyzes acquisition opportunities; negotiates acquisitions.
• Responsible for identifying opportunities to acquire properties, possibly within a designated geographic region.
• Assists in the sourcing and acquisition of property for development; conducts market research; contacts brokers and owners about property acquisition opportunities; assists in negotiations with sellers and other parties.
• Identifies and analyzes disposition opportunities; negotiates dispositions.
• Responsible for identifying opportunities to dispose of properties, possibly within a designated geographic region.
• Assists in the disposition of property; conducts market research to determine the value of properties; contacts brokers and potential buyers; assists in structuring sales transactions and negotiations with buyers.

Head of Asset Management

• Oversees the company’s portfolio of real estate assets (which are owned and managed) through acquisitions, dispositions, and day‐to‐day operations, including management of revenue and expense items; works to maximize the portfolio’s performance.
• Provides strategic oversight of existing and potential real estate assets within a designated geographic area.
• Manages business plans and budgets for properties.
• Reviews the condition and maintenance of assigned properties; manages their bookkeeping and cash flow accounting; handles rent reconciliation; prepares property financial reports and annual budget forecasts.

Head of Renovations / Construction

• Establishes and enforces company’s engineering and construction standards
• Ensures that construction work meets or exceeds standards within a designated geographic area.
• Enforces and construction standards; ensures that construction work meets or exceeds standards within cost estimates; monitors quality of work in progress; supervises regional construction heads.
• Ensures that construction work in a particular product line, such as office buildings, meets or exceeds standards within cost estimates; provides technical input on the feasibility of proposed projects; monitors quality of construction work
• Provides overall direction on assigned construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.

Business Developer

• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
• Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Sales and Marketing Officer

• Markets space; finds tenants; participates in lease negotiations.
• Provides potential buyers with a real property condition disclosure (if required by law) and other necessary forms.
• Prepares necessary papers describing the property for advertising, pamphlets, open houses, etc.
• Holds an open house to show the property.
• Serves as a contact available to answer any questions about the property and schedule showing appointments.
• Ensures that buyers are pre-screened and financially qualified to buy the property. (Sellers should be aware that the underwriter for any real estate mortgage loan is the final say.)
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk / Customer’s Service Officer

• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distribute mails in the organization
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the line manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s properties that are put – up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

The fact that house flipping business is a very rewarding business does not mean that there are no challenges in the industry. Starting a house flipping business in the United States of America comes with its own challenges, you would have to abide by the law and also compete with loads of other entrepreneurs in the real estate business value chain who also are interested in making a living and building a business in the US.

In order to compete favorably in the real estate industry as a house flipping firm we have been able to hire the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis for us. We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Joyous Homes® House Flippers, LCC;

Some of our strength that we will be bringing to the table in the real estate industry is our robust relations with properties investment moguls in the whole of the United States of America, Our access to funding and also we have a team of experts who have cut their teeth in the industry. Our commission structure and relationship with freelance real estate agents in New York and other state in the US will also count towards our advantage.

As a newbie in the house flipping / real estate industry, we might have some challenges competing with big time property developers and other house flippers that have been in the industry for many years; that perhaps is part of our weakness.

• Opportunities:

The opportunities in the real estate industry especially as a house flipping firm is massive and we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a house flipping firm are unfavorable government policies, and global economic downturn; global economic downturn usually affect spending power and the real estate industry is known to encounter decline in sales and profits during this period. There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The market trend in the real estate industry or within house flippers is that, there are no fixed profits projections when engaging in a house flipping deal.

The profit you stand to gain as a house flipper depends on loads of factors amongst which are your attention to details, ability to turn a slum or a ransack facility into an edifice and knowing exactly when to buy over property, the kind of renovations to be done on the property and the right time to sell the property. If you are able to get all the above stated factors right as a house flippers, your gains will always be far more than your loss.

Another obvious trend that is common with house flippers in the United States of America is that most of them are improvising on more means of making money in the real estate industry and as matter of fact they are also acting as property developers amongst many other functions that they are involved in.

One thing is certain for every house flipper; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from all business deals that they are involved in.

8. Our Target Market

Our target market cuts across people of different class and people from all walks of life. We are coming into the real estate industry with a business concept that will enable us work with the highly placed people in the country and at the same with the lowly placed people who are only interested in putting a roof under their head at an affordable price.

Our target market is the whole of the United States of America and we have put plans in place to recruit freelance agents (brokers) nationally to represent our business interest wherever they are located in the United States of America.

Below is a list of the people and organizations that we have specifically design our products and services for;

• Families who are interested in acquiring a home
• Corporate organizations who are interested in acquiring their own property / properties
• Home Owners who are interested in selling off their home
• Properties Owners who are interested in selling off their properties
• Foreign investors who are interested in owning properties in the United States of America
• The government of the United States of America (Government contracts)
• Managers of public facilities

Our Competitive Advantage

Joyous Homes® House Flippers, LCC might be a new entrant into the real estate industry in the United States of America, but the management staffs and board members are considered gurus. They are people who are core professionals and licensed investors in the United States property market. These are part of what will count as a competitive advantage for us.

Another competitive advantage that we are bringing to the industry is the commission model (our commission structure). We know that freelance (licensed) brokers would work for the highest bidder which is why we designed a commission structure that will be a win – win for all parties involved in any deal undertaken by us.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Joyous Homes® House Flippers, LCC is established with the aim of maximizing profits in the real estate industry via acquiring houses / properties, renovating them and them selling off the houses. Although we are a house flipping firm, but part of our work force are also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Joyous Homes® House Flippers, LCC;

10. Sales Forecast

As long as there are people living in the United States of America, there will always be need to acquire properties or move into new homes et al. Businesses need facilities to operate from and families and individuals need shelters hence the demand for the services of house flippers to help them solve these needs.

We are well positioned to take on the challenges that are synonymous to house flippers in the United States, and we are quite optimistic that we will meet out set target of generating enough income / profits from the first month or operations and grow the business beyond New York to other states in the United States of America within record time.

We have been able to critically examine the real estate market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions;

Below is the sales projection for Joyous Homes® House Flippers, LCC, it is based on the location of our business consulting firm and the wide range of consulting services that we will be offering;

• First Year-: $1,000,000
• Second Year-: $3,000,000
• Third Year-: $7,000,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same additional services as we do within the locations where we have a strong business presence. Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the real estate market in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but also all our freelance brokers that are scattered all over the United States of America.

Our goal is to become one of the top 15 leading house flipping company in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force in the industry.

Joyous Homes® House Flippers, LCC is set to make use of the following marketing and sales strategies;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the real estate industry and also property owners and potential clients through the United States of America
• Promptness in bidding for acquiring homes / properties that are put up for sale
• Advertise our business in real estate / properties magazines and websites
• List our business on yellow pages (local directories)
• Attend real estate related expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to successfully sell our homes / properties to them
• Leverage on the internet (social media platforms)       and our official website to promote our business
• Places highly visible “For Sale” sign on any property that we put up for sale
• Encourage word of mouth marketing especially when we have a home for sale.

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the real estate industry by storm which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise our house flipping business:

• Place adverts on both print and electronic media platforms
• Place our flexi banners with our company’s logo and contacts in every property we put up for sale
• Sponsor relevant TV shows so as to be able to communicate our brand and what we do
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
• Install our Bill Boards on strategic locations
• Distribute our fliers and handbills in targeted areas from time to time
• Attend landlord and residence association meetings with the aim of networking and introducing our business.
• Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al.

12. Our Pricing Strategy

Part of business strategy is to ensure that we work within the budget of our potential clients to sell excellent properties / houses to them. It is the practice in most parts of the world for properties to be valued by professionals based on the area the facility is located, the type of facility and other factors.

Since we are not directly in control of the pricing system in the real estate industry we can only abide by what is obtainable when it comes to pricing structure. But one thing is certain, we will ensure that our houses are topnotch, with standard facilities and they stand out in every environment where they are located.

• Payment Options

At Joyous Homes® House Flippers, LCC our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.

Real estate deals usually involves huge amount of money. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches and we will also pay our freelance sales agents (real estate brokers) with same platforms. Any agent who intend paying with cash will be directed to deposit the money into our corporate account and then present their payment tellers to us.

13. Startup Expenditure (Budget)

Starting a house flipping business is indeed capital intensive; hence an entrepreneur would have to pool cash together or welcome investors to partner with. Although it the capital needed to set up an office structure for such business might not be expensive, but the running capital of the business is always the real deal.

You would need huge capital base to be able to acquire houses / properties, renovate them, before putting them up for sale. Here are the areas we intend spending our start – up capital;

• The Total Fee for incorporating the Business in New York – $750.
• The budget for permits and license – $2,000
• Cost for hiring Consultant – $2,500.
• Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
• Cost for payment of rent for a suitable Office facility with enough space in New York City, New York for 12 month at $1.76 per square feet in the total amount of – $105,600.
• Cost for office remodeling (construction of racks and shelves) – $20,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The Cost of Launching our official Website – $600
• Operation / business running capital – $1,000,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from our research and feasibility studies, we will need about $1.5M (One Million One Five Hundred Thousand USD) to set up a house flipping company in New York City, New York, US.

Generating Funding / Startup Capital for Joyous Homes® House Flippers, LCC

Joyous Homes® House Flippers, LCC is majorly owned by Mrs. Joyce Sinclair and family, but they will welcome other investors in the real estate industry to partner with them. These are the areas Health Is Joyous Homes® Flippers intends to generate its start – up capital;

• Generate part of the start – up capital from personal savings
• Generate part of the start – up capital from investors (Business Partners)
• Apply for loan from my Bank

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factor are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Joyous Homes® House Flippers, LCC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our homes a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Joyous Homes® House Flippers, LCC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Renting of Office Facility in New York City, New York: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO / President and Business Partners: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

More on Real Estate

A couple that built wealth from 'live-in flips' shares 4 strategies they use to flip homes for a profit, including: Find the 'dumpy house in the great neighborhood'

• Carl and Mindy Jensen say they've profited about $1 million from seven 'live-in flips.'
• The key to a successful flip is to wait for the right deal: "You make your money when you buy."
• Specifically, they look to buy the most overlooked or undesirable home in a great neighborhood.

Carl and Mindy Jensen estimate that they've profited $1 million between their seven "live-in flips."

A live-in flip, unlike a traditional flip, is when you rehab the home to increase its market value while living there.

The Colorado-based couple prefers this strategy because it eliminates some of the risk that comes with traditional flipping.

"The beauty of this strategy is you need a place to live," Carl told Business Insider. "You'd be in a much riskier situation if you had bought a separate house that you need to flip as soon as possible because you're just pouring money into it, whereas we're just paying the mortgage on our primary house."

There are sacrifices that come with live-in flipping — since they're rehabbing the home while living there, they're essentially living in a construction zone — but it's a smart way to turn your primary home into an investment, especially if you have more time than capital.

The Jensens, who are generally shifting to more passive real estate investing strategies , shared the four tactics they've used over the past couple of decades to flip homes for a profit.

1. Wait for the right deal: 'You make your money when you buy'

A key to the Jensens' success has been waiting for a great deal rather than jumping on an OK deal.

"You make your money when you buy," said Mindy. "You don't want to get into a bidding war and overpay by 10, 20, $30,000. That could be your whole profit. There's always another house, so definitely don't fall in love with something."

It took about two years to find their current live-in flip, added Carl: "We probably saw 30 or 40 houses before we landed on it — before we found the right deal."

The "right deal" depends on the investor. For the Jensens, "I'd like to get such a good deal on the house that perhaps I could sell in a year and make money off it even if we didn't do anything to it," said Carl.

2. Buy the 'dumpy house in the great neighborhood'

Flipping properties is all about adding value — and it's difficult to do that if you buy the prettiest house on the block.

Related stories

"One thing that we have always focused on is finding that dumpy house in the great neighborhood," said Mindy. Chances are, it'll be overlooked by other homebuyers and you can score a deal.

That said, they're not looking to take on houses that have major structural issues, especially since they do most of the renovations themselves. Their sweet spot is a home that's 30 to 50 years old and in its original state; it'll likely be dated and have room for cosmetic improvements, but the mechanical systems and structure will be more modern.

"We're not doing big, big jobs. You don't want to be moving walls," said Carl. They're tackling renovations like flooring, swapping out a toilet, and painting cabinets. "It's all superficial work. It's making the ugly house look pretty."

Or, it's making an undesirable home more desirable. For example, the Jensens' current live-in flip has a pool. While that might be something buyers in Flordia are looking for, "pools are undesirable in Colorado," explained Carl. "So no one wanted this house, but it's in a great neighborhood, and it would be very easy to get rid of the pool."

Keep in mind the median home price in your market during your search process, added Mindy: "If you have a $500,000 neighborhood, you don't want to buy a $500,000 house and then turn it into a $750,000 house because people who are buying $750,000 houses want to live in a $750,000 neighborhood. Having the most expensive house in the neighborhood makes it harder to sell."

3. Know your rehab costs and DIY to improve your bottom line

It's essential to know what your rehab will cost before buying the property so you have a good idea of your expected return.

Of course, experience helps now that they're on their eighth flip. "We can ballpark based on our past experiences if it's going to be a 50, 75, or $100,000 rehab," said Mindy. As a rookie flipper, however, it's smart to overestimate the cost and timeline.

When it comes time to actually renovate the property, you have two choices: "You could hire contractors — and you better have some great connections, be pretty confident in them, and be sure of what it's going to cost — or you could do what we did, and that's doing almost all of the work yourself," said Carl.

If you buy a home with a good foundation, the renovations will be time-consuming but not necessarily hard.

"Anyone can learn how to do flooring. It's not that hard to swap out a toilet," he said. "You can go on YouTube and figure that out in a couple of minutes."

4. Do a 'live-in flip' to avoid capital gains tax

The Jensens prefer 'live-in flips' to traditional flips because it lowers their risk.

But it also allows them to sidestep capital gains tax on the sale of their properties , thanks to an IRS rule known as the Section 121 Exclusion. This lets taxpayers exclude up to $250,000 ($500,000 for a couple filing jointly) of the gain from the sale if they've used the home as a primary residence for at least two of the five years preceding the sale.

Since the Jensens live in the properties they flip, they can capitalize on the tax benefit.

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Planning for retirement: Essential strategies for real estate agents

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As a real estate agent , you’re in the business of helping people plan for their future — whether it’s helping prospective buyers find their forever home, starter house , or next investment property . But when it comes to planning for your future, it’s important to start early.

Saving for retirement is crucial so you can lead the life you envision after you’ve sold your last home. But it can be even more difficult for real estate agents since many are self-employed. Whether you have a retirement plan you contribute to or are just starting out on your retirement journey, here are a few ways you can begin growing your future nest egg.

1. Employer-sponsored 401(k) plan

If you’re employed by a real estate brokerage or company where you’re paid as an employee, you may have access to a 401(k). A 401(k) is a tax-advantaged retirement plan where you can contribute pre-tax dollars right from your paycheck. 

Many employers offer a contribution match up to a certain percentage. If your employer offers a match, it’s a good idea to try to contribute as much as they’ll match to take full advantage of this benefit. In 2024, employees can contribute up to $23,000 to their 401(k) — up $500 from 2023. If you’re 50 or older, you can contribute up to $30,500 in this account due to $7,500 catch-up contributions. 

2. Solo 401(k) 

If you’re self-employed, like most realtors, and have no employees on your payroll, you may be eligible to open a solo 401(k). Designed for self-employed individuals, a solo 401(k) offers many of the same perks as a workplace 401(k) — with a few caveats.

As a freelancer, you’re able to contribute as both the employee and employer, giving you more flexibility to add more to your account each year. However, since you’re both parties, the money is also coming straight from your pocket. In 2024, you can contribute up to $69,000 into a solo 401(k), and $76,500 if you’re 50 or older. The amount you can contribute as the employer will vary based on your income.

Another popular option for realtors who are self-employed is the Simplified Employee Pension Individual Retirement Arrangement, also known as a SEP IRA. This tax-deferred retirement plan allows you to contribute to it as an employer. If you have employees, you’ll contribute the same percentage you contribute to your own fund. You can invest up to 25% of your pre-tax income into this plan, which could be a considerable amount depending on how much you make each year.

Which is better: A Solo 401(k) or a SEP IRA?

Since most realtors won’t qualify for a traditional 401(k), you’ll likely be choosing between a Solo 401(k) or a SEP IRA. There’s no simple answer as to which is better: Both have their own benefits and drawbacks. 

Here are some differences to consider to help you find the right retirement plan for your future:

Do you want to pay taxes now or later? 

If you contribute pre-tax dollars to a retirement plan, you’ll owe taxes down the road when you withdraw your funds. If you contribute post-tax dollars, you’ll be able to withdraw that money in full because you’ve already paid taxes on it. You often make out better contributing pre-tax if you’re a high-income earner, but if you want the flexibility to decide, a Solo 401(k) lets you choose between pre- or post-tax contributions. 

An SEP IRA, on the other hand, requires you to contribute pre-tax, so you’ll owe taxes when you pull from your funds in the future.

Do you want to draw on the funds before you retire?

Although experts don’t recommend taking out a loan against your retirement fund if you can avoid it, sometimes a painful expense pops up and it’s the best course of action. If you’d like the ability to borrow against your retirement account, you should choose a Solo 401(k).

A Solo 401(k) lets you borrow up to $50,000 or 50% of your retirement fund (whichever is less), tax-free and without penalties. A SEP IRA does not offer this feature.

Which account will let you contribute the most money each year?

In most cases, the Solo 401(k) will allow you to contribute the most overall each year, regardless of your age. But as you approach retirement age, if you’re behind on your retirement savings or simply looking to maximize your contributions, a Solo 401(k) offers the opportunity to contribute more through its “catch-up” limit. While contributors under 50 can only contribute $69,000 in 2024, those 50 and older can contribute a little more ($76,500) thanks to this catch-up contribution option.

That said, if you make more than four times this amount in real estate commissions and other business profits, you might be better off with a SEP IRA since you can contribute up to 25% of your income each year. 

Other retirement investment options to consider

In addition to a main retirement plan, you can also grow your money in other ways. You can contribute to investment plans like index funds, ETFs, bonds, and more to help grow your money for retirement. Just be aware that stock market investments can be risky and returns aren’t guaranteed. It’s a good idea to talk to a financial planner before opening a new investment account.

You can also grow your portfolio through real estate investments, whether you’re buying and renting homes or multi-unit buildings, buying and flipping properties, or investing passively in REITs and other real estate funds.

As you near retirement age, it can also be helpful to move some of your savings into certificates of deposit that offer fixed returns in exchange for locking up your money for a set period of time. You should be sure to keep an emergency fund — or an amount you feel comfortable having on hand — in a high-yield savings account as well. 

A CD offers a set return as long as you don’t withdraw your money early, while a high-yield savings account offers a variable rate, but the flexibility to withdraw funds when you need it. Currently, interest rates are at a 15-year high, so it’s a good time to take advantage of high yields. 

To contact the editor responsible for this piece: [email protected]

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How Real Estate Powerhouse Ashley Watson Overcame Fear to Invest in her Dream EnVision Me Talk Show with Pamela

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Today’s guest Ashley Watson, a dynamic real estate agent from Columbus, Ohio. Shares her journey from the corporate grind to thriving in real estate, highlighting her recent venture into property investment and flipping. We'll explore the challenges and triumphs of stepping out on faith, betting on oneself, and the importance of goal-setting and fear management in chasing dreams. Plus, don't miss Ashley's invaluable tips for those looking to break into the real estate industry and her personal insights on self-care and balancing work with family life. Whether you're considering a career shift or looking for motivation to pursue your ambitions, this episode is packed with inspiration and practical advice to fuel your next big move. 00:00 Empower women to pursue their next goals. 03:15 Women don't have to jump into work. 07:13 Support for women to succeed in business. 10:30 Real estate investment goals and purchasing a home. 15:08 Asked question, introduced book club, emphasized empowerment. 18:28 Self-care through family time and nature walks. 21:52 Plan for retirement, invest in real estate. 24:18 Age, education shouldn't hold you back. Pursue your passions with confidence. 25:50 Free networking event, join us for fun! --- Support this podcast: https://podcasters.spotify.com/pod/show/whatsnextforwomen/support

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‘drunkest bride alive’ moons entire wedding reception after wardrobe malfunction during botched first dance.

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A newlywed who described herself as the “drunkest bride alive” has revealed she’s still haunted by a mishap she had on her wedding day.

Amanda Scheller, from Canada, has revealed all the things that went horribly wrong after she tied the knot with her now husband, Sequoyah Stonecipher.

The couple, who got married in Mexico, adopted a relaxed approach to their celebrations resulting in some unexpected incidents on the day.

Amanda has since compiled a video detailing all the blunders, which she credits to being very merry, that happened during their wedding reception – which has gone wildly viral.

In the clip, which has so far been viewed more than 2.6 million times, Amanda starts by sharing her “failed” flower toss.

The age-old tradition often sees single women at the event gather with the belief that catching it means they will walk down the aisle next – but when Amanda threw her huge bouquet, things instantly went awry.

“101 of being the drunkest bride out there,” she stated. “Failing at throwing my bouquet way off side but the girls are happy.”

Next up, the video saw Amanda and Sequoyah tackle the highly-awaited first dance, but unfortunately it didn’t go to plan.

“I completely forgot all the moves that we had practiced,” she explained.

“I had a couple drinks, dipped the wrong way, slinging myself, thankfully he held me up.”

But the worst was yet to come, with the newlyweds deciding to perform their big finale move, despite being a little inebriated.

“Here we go, looking good, setting up, flipping… until my whole entire butt is out to moon the guests,” she states.

“There it is. Woo. Butt cheeks and all. Great. Thought I did the performance of a lifetime. Wow. Drunkest bride alive.”

Many praised Amanda for having a sense of humor about the situation, while others labeled it “embarrassing”.

Those who thought it was funny said it was refreshing to see a bride and groom having fun, as often it can prove to be a stressful day.

“Hahahahahhaha, I’m dying. You had fun and were surrounded by the people you love most! That’s the most important part,” one said.

Those that thought it was too much to bear declared they were mortified on behalf of the bride.

“This would haunt me for the rest of my life OMG,” wrote one user.

“I’M SO SORRY HAHAHAH I would never go a day without thinking about this,” said another.

As one shared: “This would keep me up till 3am every day for the rest of my life.”

Meanwhile some questioned why she didn’t wear bike shorts or “drawers” under her dress to prevent her bum from being exposed, prompting Amanda to respond in a comment.

“I’m wearing a G-string. My dress had a slip. No we didn’t practice doing the flip in a dress. I knew it would come up but yolo! Wasn’t not going to do the backflip.”

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news Politics

Dallas officials, pension system agree on many fixes, except for who gets to approve plan

A lawyer representing the pension system told state officials the pension system did not need the city’s approval to adopt a funding plan. the city’s attorney disagrees..

By Devyani Chhetri

1:23 PM on May 14, 2024 CDT

As Dallas officials and the Dallas Police and Fire Pension System forge ways to fill a $3 billion pension shortfall, legal correspondence recently made public shows the two are at odds on who gets the final say in approving the plan.

On Jan. 16, Ben Mesches, a lawyer representing the pension system, wrote to state officials and said the pension system did not need the city’s approval to adopt a funding plan. “The System’s board has exclusive authority to adopt a pension plan,” the letter said.

The letter, which was first reported on by KERA , said the state pension board’s reading of two state statutes, which cast the city as the final arbiter, were “erroneous.”

City Attorney Tammy Palomino wrote a legal rebuttal to Mesches’ letter on May 10. She said state law required the pension system and the city to jointly formulate a plan. In every scenario, Palomino said, the plan couldn’t go forward without the Dallas City Council weighing in.

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Council member Tennell Atkins, who chairs the ad hoc committee on pensions, said council members recently learned about the Jan. 16 letter.

“We as policymakers, we have to stop and turn and say, hey, we don’t agree with the letter. But did we get caught off guard? Yes, we got caught off guard,” Atkins said. Taxpayers will be the ones to have a final say since they would be the ones footing the bill, he said.

Kelly Gottschalk, executive director of the pension system, told The Dallas Morning News the pension board has been vocal about having the final say.

She said a “negotiated right” was put into law in 2017 when the Texas Legislature reeled the pension fund back in from collapse , restricted city’s contributions for seven years and changed the governing structure to give the Dallas mayor the authority to pick six of 11 pension board members. The city, she said, also hasn’t adequately funded the pension system as it has other services it also has to pay for.

Related: Big empty: How Dallas police and firefighters lost $100 million on two deals

“We’re committed to try to find a solution where the city agrees, and we agree, and we all adopt the same plan, but we know—because we’ve been here before, we’ve dealt with the city on a lot of issues— the chances are there might be a provision or more that we don’t agree on,” Gottschalk said.

Consensus or no consensus, the board will have to adopt the plan because it is legally required to do so, Gottschalk said.

Jack Ireland, Dallas’ chief financial officer, told The News the city wanted to build consensus and arrive at one plan together, and he hoped the city will have a more concrete plan mid-summer.

Ireland rejected the notion that there was a pension crisis at hand. The city, he said, could reach its goal to fully fund the plan in 30 years just off its operating budget. He said the city is looking for a steady revenue stream that isn’t attached to the general fund, so that the city doesn’t have to cut services to fix the pension fund.

In the past, city officials have considered liquidating more of its real estate portfolio to put more cash into the fund. They have also recommended seeking voter approval to change contribution rates for the employees’ retirement fund.

Ireland said the city has also considered pension obligation bonds. But that would need more research and more favorable interest rates.

Recently, city council members have also begun contemplating whether it can reduce the sales tax it sends to the Dallas Area Rapid Transit. DART collects a penny sales tax — a 1% tax on every dollar spent — in all 13 of its member cities. The transit agency collected over $400 million in Dallas annually for the last two years, sales tax data shows.

Related: Dallas City Council could consider diverting DART funding to address pension crisis

Finding consensus

Ireland and Gottschalk have been trading recommendations for the past several months, meeting each other for a call at 8 a.m. every morning.

They said they both want to fill the pension gap faster. Both the city and the pension system, they said, agree they need to ramp up pension contributions that match the recommendations from the actuarial firm, Cheiron, which was hired to assess and recommend the best models that can help fill the gap.

Both want a plan that fully funds the system in 30 years, and they plan to do so by having the city make “actuarially determined” contributions instead of fixed rate contributions.

But flipping to those contributions in one fell swoop is not economically tenable for the city, so they’re planning on incrementally reaching those contribution levels over a period of time, according to Ireland.

The pension system would like for the city to begin filling the hole with a three-year phase-in. The city, on the other hand, wants to do that over a five-year period, Ireland and Gottschalk said.

“They both get to the same place,” Ireland said. “There’s just two different ways to get there.”

Ireland said the city prefers the five-year step-up plan because that would mean increasing the city’s yearly contribution by $17 million or $18 million a year. “It is something that we can manage in a way that I think is appropriate and reasonable for the city,” he said. The city currently contributes $184.7 million to the police and fire pension. With a five-year step-up model, that contribution will go up to $202 million in FY 2025.

Atkins said as budget considerations continue, council members will also be contemplating what services they need to prioritize in order to make more room to fund the pension fund.

Ireland said the city’s goal was to keep up with its peer cities in providing competitive pay for police officers and firefighters. “At the same time, we have code issues, we have park issues, we have libraries, we have all the other services that the city provides that we have to balance,” he said. The city will present its budget plan in August.

The recommendation the city and pension system diverge on most is related to cost-of-living increases in the plan. State law mandates that cost-of-living adjustments to a pension plan occur only when the pension plan reaches a 70% funding level. Gottschalk said the pension is 39% funded and the actuarial firm estimates that that the fund will reach 70% by 2046. “That’s 30 years without a cost-of-living increase,” Gottschalk said.

The pension system wants to figure out a way to provide cost-of-living increases to its members, especially since members of the civilian pension fund get cost-of-living increases, Gottschalk said.

Ireland said he, too, would prefer reaching the 70% funding threshold faster than 2046. It would be difficult for the city to give cost-of-living increases when there aren’t enough employees paying into the pension fund, and the city will only take on more unfunded liabilities, he said.

Dallas has until Nov. 1 to come up with a 30-year funding plan to resolve its pension predicament . The fire and police pension system faces a $3 billion shortfall in its police and fire fund , which administers the pension program for over 10,000 current and retired officers. The pension fund for civilian employees also suffers a $1 billion shortfall , according to city officials .

Most of the pension issues emanated from decisions that supported unsustainable benefits and poor investments, like owning a 3,100-acre California resort bought for close to $111 million in 2006 , the director of the Dallas Police and Fire Pension System, Gottschalk, told The News in 2018. The resort was later sold for $22 million in 2018.

Devyani Chhetri , City Reporter . Before joining the Dallas Morning News, Devyani Chhetri covered South Carolina politics and presidential primaries at the Greenville News. She went to Boston University for graduate school.

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