I have created content related to just about every aspect of flipping. For this week’s post, I want to zoom out and give you a checklist to simplify your house-flipping business and processes for each project.
The following checklist includes nine steps, from finding the house to selling the home.
1 – Find Good Deals
First on our checklist is to find good deals. Sure, a no-brainer, but you’ll need to know what constitutes a “good deal.”
Start with determining your strategy. Will you use a realtor? Depend on the MLS? Go to auctions or focus on direct marketing? Each of these strategies is a great option.
No matter which strategy you choose, I recommend networking and letting all know who you are, what you do, and what you’re looking for. Especially if you’re a newbie and your flips can’t speak for themselves yet.
You can also find good deals in digital classifieds, real estate investment groups, REO, short sales, and direct-to-seller.
Another aspect of this part is getting your finances in order. Here is more information about that: Guide to Funding Your Flip.
2 – Make Offers
Now that you’ve found a property that meets your expectations, it’s time to make offers. You should plan on putting multiple offers in before getting accepted. Additionally, you’ll want to determine your highest bid before falling into a bidding war or negotiation with the seller.
Your offer will depend on your funding and include the other costs associated with purchasing a home, running your business, and flipping.
3 – Finalize Financing
Once your deal has been accepted, you’ll need to finalize financing. I discuss funding options in detail in this article: Guide to Funding Your Flip.
Different financing options will take different amounts of time. Hard money loans, which tend to be the most common financing for flips, are usually fast.
4 – Schedule Property Inspection
Next, schedule a property inspection. A home inspection is a visual examination of a property. The inspection will provide valuable insight into what you’re buying! Not only that, you can possibly use the results of your inspection to negotiate with the buyer on price or to have them fix things for you before the sale goes through.
Home Inspectors look for a range of things including: Electrical systems, plumbing systems, roofing systems, insulation and ventilation, heating and cooling systems, major installed appliances, fireplaces and venting, structural components, exterior features, and interior features.
You (the buyer) schedule the home inspection.
5 – Purchase the Property
Once the property is inspected and you’re moving forward, it’s time to put your purchase through. Your closing date will depend on your agreement with your lender and the seller or realtor.
This step includes: Confirming your closing date, compiling and reviewing paperwork, bringing all papers and funding to the meeting for closing, and making copies of keys for contractors.
6 – Prepare for the Renovation
The house is officially yours, and it’s time to get down to business. As I have always emphasized, timelines and budgets need to be established and clearly communicated to all involved.
Now, you’ll be preparing for the renovation by selecting a contractor (here is more information), switching utilities to your name, pulling permits, establishing jobs for each involved. Here is more information about working with a contractor as smoothly as possible.
Other preparation measures include:
- Sign contracts
- Turn on utilities
- Order/confirm dumpster is ordered
- Take before photos
- Decide on trends, amenities, and special additionals you want to incorporate
- Draw up plans and schedules
You can never be too prepared when it comes to getting started on a renovation. Be ready mentally, financially, and planning-wise.
7 – Renovate
You’re prepared and now you’re ready to go! Next, we get into the renovation process.
By now, you’ll have your plan for what you’re going to renovate (flooring, lighting, windows, siding, etc.). You’ll have a firm budget that includes a cushion for any unforeseen issues, you’ll have your team in order after going through a thorough vetting process to hire contractors. And lastly, you’ll have a schedule set and all those involved in the project on the same page.
Some tips when it comes to renovations I like to recommend are to visit the site as much as possible, have an open communication with all involved, and do a final walk through before moving forward to listing.
8 – List the Property for Sale
Once the renovation is complete you are ready to sell the house! Your goal here is to sell the property quickly so you can move on to another project. Be sure to clean, stage, and get professional photos done. You will have potential buyers viewing your property in person and online.
Having a good realtor is key. They will help you with pricing recommendations and represent your interests when working with buyers. They’ll negotiate on your behalf regarding pricing, concessions, and inspection requests.
Though you will pay a commission, they bring expertise to the process and can secure you a higher price and more favorable offers. If you’re using a realtor, discuss the details with them and develop your listing agreement. If working with a realtor, they can take care of marketing the property, posting to the MLS, putting up “for sale” signs and holding open houses.
While you can hand over some of the responsibilities to the realtor, it’s important to be a part of it and continue to check in and communicate with your realtor.
9 – Review Offers and Sell!
Let’s talk about reviewing and accepting offers to close out our checklist. As offers come in, you can discuss with your realtor and consider all of the proposal to determine which is best for you and your goals.
Ask questions like:
- Is the buyer’s loan approved in writing?
- Is the buyer’s down payment and closing cost money liquid and available?
- Will the buyer provide proof of funds?
- Does the buyer have time constraints?
- Has the buyer read and approved your disclosures?
- What property inspections is the buyer going to order?
- Is the buyer flexible on closing dates?
- Does the buyer have to sell a home?
- Will the buyer entertain a counteroffer?
Getting offers is exciting, but try not to accept any offers. Consider the above questions so you’re not wasting time, stressing or losing money.
Ready to take that next step when it comes to flipping?
I have the perfect place to start! Check out my Find my Flip course.
I also have some resources I’ve put together to help you get the information you need to move forward on creating your flipping life.
Make sure you have the Fixer Upper Checklist so you know which areas are key to added value in a home.There are several videos on finding houses, renovations, and funding on YouTube. Check out your favorite flipping topics and new videos weekly!