When you decide to flip a house it’s common to then ask yourself “what next?”. Creating a business plan is a great next step for several reasons. If you are looking for a template you can find them online, but truthfully it can be done in a Word or Google document. There is no fancy software or template needed.
Putting your ideas into a document with steps will help you get a big picture idea of all the little things you need to work on.
Giving your business life by writing down what you want it to be makes it real. When it feels real you’re likely to commit to the steps needed to make it work. Think of it as a promise to yourself.
Understanding the process and the potential areas where things may go wrong is key. Identify where things may hit a bump and developing a strategy for how to correct them makes it easier. Sometimes even just seeing the hiccups makes them less disruptive. For example, an unexpected repair. Not a common thing but it does happen. In order for it to not derail your entire project your solution should be to include a contingency dollar amount (think 5000). That way you’re covered and if you don’t need it, its bonus profit.
How are you structuring your business? Before you submit an offer you will need to have business name and the necessary doucmentation. In order to do that, you need to have your business name registered with your state. This can typically be done online. You will also want to decide on the entity structure your business will have and for that you will want to consult an attorney or accountant.
When you are looking at a house flip as a business then you will be considering different financing opportunities. Even before you have a house you should run scenarios with actual numbers to see how borrowing vs. using cash or other loans may impact your bottom line. This type of practice will prepare you for the future when you may have to consider borrowing money rather than let a deal go to another investor.
Who do you need to partner with to help you? Is it a realtor? A contractor? Whoever it is list them out and then include ways you are going to find them. This one step can start immediately and requires zero investment. Create lists with names and phone numbers and start reaching out.
A business plan is not only useful for you but it can be useful for lenders or other professionals that you hope to have as part of your strategy. If you have a specific area you are targeting and price points include those as well. All of this will put you in a great spot as you start to close in on that first flip purchase.
So you’ve purchased a house to flip. Now what?
Want to buy a property and renovate it?
I have a freebie checklist that will help you — 8 Things I look for When Purchasing a Home. Just click here to download it.
Love before and afters?
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