<\/p>\n\n\n\n
Again, anyone can show up and do these things, but only those who show up with a house flipping business plan that is built off of an expertise in all these areas will render the biggest profit (and avoid the biggest headaches). <\/p>\n\n\n\n
The house flipping business plan shared below will be a valuable roadmap as it will provide structure for the deal (from start to finish) and clarify the business deal strategy as a whole.<\/p>\n\n\n\n
When creating a business plan for house flipping, you must carefully consider various factors that can impact the success of your venture. For example:<\/p>\n\n\n\n
- \n
- Examples of successful business plans<\/li>\n\n\n\n
- Financial projections<\/li>\n\n\n\n
- Marketing strategies and tactics<\/li>\n\n\n\n
- Project timelines<\/li>\n\n\n\n
- Construction costs<\/li>\n<\/ul>\n\n\n\n
<\/p>\n\n\n\n
Buying a home to live in is a risk in and of itself. However, in the end it\u2019s a home you\u2019ll live in and time can mitigate mistakes. Buying a home for the expressed purpose of turning a profit means you have much less margin for error, thereby, compounding the potential risks. If buying a primary residence requires foresight and planning, flipping a home for profit requires an exponentially greater amount of both. <\/p>\n\n\n\n
In the flipping business plan below we have put together a well-thought-out process for you to learn, adopt, and follow in order to increase your chances of a successful flip, which means, profits!<\/p>\n\n\n\n
Other People Who Have Followed This Business Plan<\/h2>\n\n\n\n
This business plan for house flipping is not theory. It\u2019s not conceptual. It is not just a collection of \u2018good ideas\u2019. <\/p>\n\n\n\n
What you are about to learn is the cornerstone approach that has allowed everyday men and women, average Americans, to profit $35,000, $55,000, even $100,000 on their first flip. <\/p>\n\n\n\n
If you\u2019re looking for concrete evidence of a successful plan, you\u2019re in the right place. <\/p>\n\n\n\n
Who are these people? You can meet them, hear their stories, learn about their experiences, and discover just how much profit they were able to generate with their flips. <\/p>\n\n\n\n
Home Flipping Success Stories<\/a><\/p>\n\n\n\n
![\"\"](\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/07\/Shane.jpg\")
<\/figure>\n\n\n\nBlueprint Real Estate Guide to Growing Trends<\/h2>\n\n\n\n
You\u2019re not blind \u2014 house flipping is a trend that has been trending upwards over the last couple decades. <\/p>\n\n\n\n
Truthfully, flipping houses has always been a legitimate real estate play but with the advent of home flipping and home renovation television shows, it has gone from a real estate play for heavy investors to a gateway into generating wealth in real estate. <\/p>\n\n\n\n
Even still, not everyone gets wealthy off of house flipping. Many people start off with deals that look promising but a lack of knowledge, experience, and expertise turns their dreams into a nightmare. <\/p>\n\n\n\n
In the first quarter of 2022, one in ten properties for sale was solely targeted for house flipping. In the year following that number has doubled.<\/p>\n\n\n\n
If you want to know why the trend has gone from little known real estate deal, to entertainment novelty, to mainstream real estate investment opportunity, all you need to do is dip your toe into learning about the market condition, competition, and individual business practices that have developed over the last decade. <\/p>\n\n\n\n
Regardless of the current trends, one thing is true \u2014 real estate in any financial market can be incredibly lucrative and home flipping has proven to be the gateway deal into developing a strong real estate investment business.<\/p>\n\n\n\n
![\"\"](\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/07\/Real-estate-business-1024x538.jpg\")
<\/figure>\n\n\n\nDespite the growing trend, the market remains rich with opportunity and if you have a strong home flipping business plan you will purchase your property with a certain understanding of the market, a clear approach for the renovation process, and even possibly a mentor or flipping coach to help you navigate the ins and outs of the deal.<\/p>\n\n\n\n
Real Estate Blueprint<\/h3>\n\n\n\n
The appeal of house-flipping as a blueprint for real estate investment comes from the potential for quick profits without long-term commitments. This is the phenomenon that reality TV shows have leaned into, leading anyone sitting on a couch at home watching a reality flipping show to think, \u201cI could totally do that.\u201d<\/p>\n\n\n\n
Yes, you can! But can you do it for maximum profit? No. Not if you don\u2019t have a proven plan to follow.<\/p>\n\n\n\n
This is what makes a blueprint for flipping attractive. \u201cIf I had a proven plan that would tell me what to do, what to expect, and how to get the most for my money, I think I could pull this off.\u201d<\/p>\n\n\n\n
Now you\u2019re thinking! <\/p>\n\n\n\n
And you do need to be thinking this way because flipping houses carries certain risks.<\/p>\n\n\n\n
The process, especially the first time, can be demanding, time-consuming, and emotionally draining. When you are working harder than you\u2019ve ever worked, putting in more hours than you\u2019ve ever put in, and the \u2018sold\u2019 sign seems to be further and further away than you initially planned, it becomes apparent that you got into something more than you bargained for.<\/p>\n\n\n\n
We want to avoid that and to do that, we need to get back to, \u201cthe proven plan.\u201d Not a 20 minute television show. Not a YouTube channel. A real, practical and tactical plan that works wherever it\u2019s tried.<\/p>\n\n\n\n
This is what separates successful flippers from those trying to implement a combination of mimicking what they\u2019ve done in their own personal residence and what they\u2019ve seen on tv.<\/p>\n\n\n\n
The truth about HGTV is that ordinary people can purchase, fix, and sell their property for profit. That\u2019s absolutely true. But notice, they are usually paired up with a show host who is coaching them and leading them through the process. And this is exactly what you need.<\/p>\n\n\n\n
Before embarking on your first house flip, ask yourself the following questions:<\/p>\n\n\n\n
- \n
- What is the average cost of flipping a home?<\/li>\n\n\n\n
- What considerations should you I keep in mind before flipping my first house?<\/li>\n\n\n\n
- How can I make money flipping houses without using my own money as the startup capital?<\/li>\n\n\n\n
- Is the fix-and-flip real estate market really profitable?<\/li>\n\n\n\n
- How much knowledge do I need in real estate and construction?<\/li>\n\n\n\n
- Where can I find the best property deals to flip?<\/li>\n<\/ul>\n\n\n\n
<\/p>\n\n\n\n
You don\u2019t know what you don\u2019t know. Perhaps you see some of these questions and think, \u201cWell why would I need to know that?\u201d This underscores just how important it is to know what you\u2019re getting into before you get into it and what you\u2019re going to do once you are in.<\/p>\n\n\n\n
A game plan. A blueprint. A framework. A roadmap. Call it whatever you want\u2026 in the end you\u2019ll make more money if you go in with a plan you know works as opposed to figuring it out as you go.<\/p>\n\n\n\n
There are ten items essential to your business plan:<\/p>\n\n\n\n
- \n
- Cost analysis of house flipping<\/li>\n\n\n\n
- Assessing the worth of house flipping<\/li>\n\n\n\n
- Timeframe for house flipping<\/li>\n\n\n\n
- Emphasizing the importance of timeline<\/li>\n\n\n\n
- Experience required for house flipping<\/li>\n\n\n\n
- Strategies for finding house to flip<\/li>\n\n\n\n
- Where to spend your $10k when flipping<\/li>\n\n\n\n
- How to overcome financial obstacles<\/li>\n\n\n\n
- Duration of the house flip (start to finish)<\/li>\n\n\n\n
- Techniques for finding ideal flip properties<\/li>\n<\/ol>\n\n\n\n
<\/p>\n\n\n\n
We are going to provide you with the blueprint. You\u2019ll be grateful for every word. But consider going further with Home Flipping Workshop to assist you in structuring your plan effectively to your market and timeline. You\u2019ll be happy you have a business plan that provides valuable insights and templates to enhance planning and execution.<\/p>\n\n\n\n
Funding A House Flipping Deal<\/h2>\n\n\n\n
How much money will you need to flip your first house?<\/p>\n\n\n\n
Truthfully it\u2019s not so much about \u2018how much money\u2019 you will need and it\u2019s more about where are you going to get the money to fund your flip. <\/p>\n\n\n\n
You do not need and really should not use your own money as the bulk of your capital for the deal. You will need some money, several thousand dollars, but the majority of your funds should come from other people\u2019s money (OPM).<\/p>\n\n\n\n
Financing is often what scares people away from real estate. <\/p>\n\n\n\n
Either 1) they look at their own finances and think, \u201cI don\u2019t have enough money to get into real estate,\u201d or 2) they are just scared of losing what money they do have doing something that is \u2018risky.\u2019<\/p>\n\n\n\n
Your first move, before you do anything, is to explore the financing options available to you outside of your own savings. This is how the big time real estate investors do their deals and it\u2019s exactly what you should do, too.<\/p>\n\n\n\n
Here are options that we focus on when working with students during Home Flipping Workshop.<\/p>\n\n\n\n
- \n
- Hard Money Lenders<\/li>\n\n\n\n
- Private Investors<\/li>\n\n\n\n
- Crowdfunding<\/li>\n\n\n\n
- Joint Ventures<\/li>\n\n\n\n
- Real Estate Syndication<\/li>\n\n\n\n
- Real Estate Investment Trusts (REITs)<\/li>\n\n\n\n
- Seller Financing<\/li>\n\n\n\n
- Personal Funds and Equity<\/li>\n\n\n\n
- Institutional Lenders<\/li>\n<\/ol>\n\n\n\n
<\/p>\n\n\n\n
Maybe you see some of these options and think, \u201cThat looks risky,\u201d or, \u201cThat\u2019s seems scary to think about.\u201d And you\u2019re right\u2026 without a plan, without a pathway it is risky and it is scary. But you\u2019re not going into this willy nilly. You\u2019re not going to try and flip a house with zero experience in real estate, finances, or construction. <\/p>\n\n\n\n
You\u2019re going to use a plan and your plan is going to be catered to your timeline\u2026 as such, you can look at each financing option and choose the option that gives you the greatest leverage. <\/p>\n\n\n\n
Maybe you can afford a hard money lender because your timeline is short. <\/p>\n\n\n\n
Maybe you have substantial equity in your home and can take out a loan (while it\u2019s your equity, it\u2019s the bank\u2019s money).<\/p>\n\n\n\n
Before you do anything you need to work out your funding.<\/p>\n\n\n\n
Funding is a part of your overall finances and you need to be aware of all the costs that will go into your flip. There are obvious costs (purchase of the property, renovations, materials) and there are a lot of costs that you\u2019d never even think of until you\u2019re faced with the bill.<\/p>\n\n\n\n
A part from the purchase price, you\u2019ll need to take into account additional expenses including but not limited to: <\/p>\n\n\n\n
- \n
- Loan costs<\/li>\n\n\n\n
- Selling costs <\/li>\n\n\n\n
- Carrying costs <\/li>\n\n\n\n
- Insurance costs<\/li>\n\n\n\n
- Renovation costs <\/li>\n<\/ol>\n\n\n\n
<\/p>\n\n\n\n
All of these costs will add up and as you determine your budget you will need to keep all of these potential expenses in mind. This is where having financial expertise and real estate expertise comes in really handy. Bottom line, get these numbers right in the beginning and you\u2019ll have a stronger idea of how much you will stand to make in the end. <\/p>\n\n\n\n
While there is no one-size-fits-all formula to determine it all, partnering with a professional who has navigated this type of deal in the past will provide you with a stronger baseline. Whether you work with Home Flipping Workshop or you\u2019ve already identified a party who will help you map out your these finances, the more prepared you are ahead of time, the stronger your leadership will be during the project, and the bigger profit you will stand to make.<\/p>\n\n\n\n
As you identify potential properties you will be able to fill in your evaluation worksheet (and you can download our free real estate evaluator worksheet here<\/a>) and the numbers will come into focus.<\/p>\n\n\n\n
Know How Much Will Your Flip Stand To Profit<\/h3>\n\n\n\n
\u201cIs house flipping worth the cost?\u201d It depends.<\/p>\n\n\n\n
It absolutely can be worth the cost of time, money, and effort. <\/p>\n\n\n\n
\u201cIs it worth it to you?\u201d,<\/em> is the correct question.<\/p>\n\n\n\n
Why are you wanting to get into flipping? Are you trying to earn an extra $5,000 a month? Are you trying to pay off debt? Are you trying to replace a full time job? <\/p>\n\n\n\n
![\"\"](\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/07\/Artboard-10-1024x538.jpg\")
<\/figure>\n\n\n\nAre you trying to take a dream vacation? Are you trying to move to your dream location? Are you trying to build a dream house?<\/p>\n\n\n\n
No matter what your reason for flipping is it will absolutely not be worth it if you end up making only a fraction of what you hope to. You need to know before<\/em> you put the deal together that when you\u2019re finished you will make at least<\/em> the amount needed to fulfill your reason for flipping.<\/p>\n\n\n\n
That said, if you know how to spot the right deal with the right potential, yes, flipping can be absolutely worth it\u2026 and more than that, predictable.<\/p>\n\n\n\n
Think about that\u2026 PREDICTABLE.<\/p>\n\n\n\n
Having command over your finances before you get into the deal a way to determine if a flip will be worth it before you get into the middle of the deal. <\/p>\n\n\n\n
We want your first flip to be incredibly profitable. But more than that, we want you to get through your second flip. Once you have flipped two homes you have, in effect, build a working knowledge of what it takes to succeed in real estate and you are now, in effect, ready to take on any type of real estate deal.<\/p>\n\n\n\n
Home flipping is a gateway to real estate investment but it all starts with getting the finances straight.<\/p>\n\n\n\n
Variable Costs of House Flipping<\/h2>\n\n\n\n
In your business plan, you need to account for the variable costs associated with house flipping. Here are some of the variables that can impact your costs:<\/p>\n\n\n\n
- \n
- Property Acquisition<\/strong>: The cost of acquiring a property for flipping can vary widely based on location, market conditions, and property type. <\/li>\n\n\n\n
- Renovation and Repairs<\/strong>: The extent of renovations and repairs needed to make the property market-ready can significantly impact costs. <\/li>\n\n\n\n
- Labor and Contractors<\/strong>: The cost of labor and contractors can vary depending on the scope of work, location, and market conditions. Skilled tradespeople such as carpenters, electricians, plumbers, and painters will charge different rates, and these costs will contribute to the overall expenses.<\/li>\n\n\n\n
- Materials and Supplies<\/strong>: The type and quality of materials and supplies used for renovations are crucial in costs. The prices of construction materials can fluctuate based on market conditions, availability, and the project’s specific requirements. <\/li>\n\n\n\n
- Holding Costs<\/strong>: Flipping property involves carrying costs during the renovation and selling. These costs include property taxes, insurance, utilities, loan interest payments, and maintenance expenses. The longer the property remains unsold, the higher the holding costs.<\/li>\n\n\n\n
- Financing<\/strong>: The method of funding used for the project will impact the costs. Interest rates, loan origination fees, and other financing charges can vary depending on the chosen financing option, such as traditional mortgages, hard money loans, or personal funds.<\/li>\n\n\n\n
- Marketing and Selling<\/strong>: Marketing and selling costs can vary depending on the strategies employed. Expenses may include professional photography, staging, advertising, real estate agent commissions, and closing costs.<\/li>\n\n\n\n
- Market Conditions<\/strong>: The overall state of the real estate market, including supply and demand dynamics, can influence costs associated with housing flipping. In a competitive market, property acquisition costs may be higher, while market trends may influence selling prices.<\/li>\n<\/ol>\n\n\n\n
<\/p>\n\n\n\n
You\u2019re no stranger to fluctuations in the market. Not just the real estate market but the economy altogether. <\/p>\n\n\n\n
Consider the new homes that were sold in 2018 but weren\u2019t set to be built until 2021. The cost of materials jumped so astronomically high that it made the housing prices that were agreed to in 2018 no longer viable and many people were unprepared for the true cost of their home when it was eventually built.<\/p>\n\n\n\n
Your home flip won\u2019t take 3 years but the example shows just how much things can change and we\u2019re telling you this so you can build in the margin necessary. <\/p>\n\n\n\n
The housing market is subject to fluctuations, and an investor could end up with a property that takes longer to sell than expected. Or you might possess a property that sells for less than the cost of renovations.<\/p>\n\n\n\n
Do the research. Understand the market. Build in margin. Establish a timeline to keep you on time and on budget.<\/p>\n\n\n\n
How Long Does It Take to Flip A House? Establishing Your Timeline<\/h2>\n\n\n\n
Staying on budget is largely determined by establishing and keeping a project timeline. <\/p>\n\n\n\n
Not every home project will operate on the same timeline. Some jobs will take more time and some will take less. As you build your plan, one of the conversations you need to have with your coach or professional consultant will be, \u201cWhat type of timeline can I afford?\u201d<\/p>\n\n\n\n
Some financing options will necessitate a shorter timeline. <\/p>\n\n\n\n
Some materials needed for a job will necessitate a longer timeline. <\/p>\n\n\n\n
So while we can\u2019t give you an example timeline (to do so would not be responsible), having the conversation as you build your business plan is essential. <\/p>\n\n\n\n
Glenn & Amber Schworm, Co-Founders of Home Flipping Workshop, have flipped over 1,100 homes and in doing so have generated over $100 million in revenue. With that much water under the bridge, they have provided some general guidelines for timelines. You can expect your timelines to fall within these parameters. <\/p>\n\n\n\n
- \n
- 1 \u2013 2 Months \u2013 To Find a Property<\/li>\n\n\n\n
- 2 \u2013 6 Months \u2013 To Renovate the Property<\/li>\n\n\n\n
- 1 \u2013 3 Months \u2013 To Market the Property<\/li>\n\n\n\n
- 1 \u2013 2 Months \u2013 To Sell the Property<\/li>\n<\/ul>\n\n\n\n
<\/p>\n\n\n\n
![\"\"](\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/07\/house-flipping-timeline.jpg\")
<\/figure>\n\n\n\nAgain, this is a very broad timeline that you can expect to operate off of. These are reasonable goals to set for each critical stage. For a beginner, completing a flip in one year is excellent. However, an experienced investor can flip a house in approximately 6-9 months.<\/p>\n\n\n\n
If you have maintained any relationships over time you know how important communication is. Ordinary friendships, romantic relationships, and business partnerships all thrive on clear and precise communication. A project timeline provides the type of clear and precise communication you\u2019ll need in order to stay on time and on budget. <\/p>\n\n\n\n
Consider everyone who will be relying on your timeline:<\/p>\n\n\n\n
- \n
- Financing partners<\/li>\n\n\n\n
- General contractor<\/li>\n\n\n\n
- Real estate agents<\/li>\n\n\n\n
- Vendors<\/li>\n\n\n\n
- Business partners<\/li>\n<\/ul>\n\n\n\n
<\/p>\n\n\n\n
Your timeline is the mouthpiece of your project. Everyone will refer to your project timeline to know if they are on schedule. They will refer to your project timeline to know when to expect the next phase to begin. They will refer to your project timeline to know how much time is available to work through obstacles. <\/p>\n\n\n\n
If you finish ahead of schedule, that typically means greater profit. If you finish behind schedule, that typically means greater losses. <\/p>\n\n\n\n
Reality TV makes it appear that a flip takes place in a week or two and even if they state the time that has passed, the nature of television still deceives the viewer of the true time. <\/p>\n\n\n\n
Home Flipping Workshop goes beyond stating what should be in your business plan, in this case a timeline, and helps you answer questions about the nature of your project to establish a reasonable timeline.<\/p>\n\n\n\n
Don\u2019t rely on the timelines you see on TV or the timelines you\u2019ve heard from other people. Build your business plan based upon the particulars of your deal and your location. That is the only way you can plan your profit with any type of accuracy.<\/p>\n\n\n\n
More Time Costs Lowers Your Home Flip Profit<\/h3>\n\n\n\n
Poor planning can ruin your house-flipping deal before it even begins. Everything you see in the shows \u2014 cost overruns and missed deadlines \u2014 those are realities you are going to potentially run into. This is why you plan vigilantly ahead of time.<\/p>\n\n\n\n
Plan against some of the most common profit suckers:<\/p>\n\n\n\n
Underestimating the Cost of Renovations<\/strong><\/p>\n\n\n\n
Do not guess at expenses. Get hard numbers. Get real quotes. Maybe in the future your working knowledge of past deals can inform some mental estimates \u2014 but not right now. You need to deal in certainties. <\/p>\n\n\n\n
Missing Deadlines<\/strong><\/p>\n\n\n\n
Remember above when we talked about deadlines being the communication everyone relies on? You must build margin into your deadlines and into the overall numbers. Nothing goes according to plan so plan on it costing more time than what you think. Add margin.<\/p>\n\n\n\n
Overlooking Essential Details<\/strong><\/p>\n\n\n\n
Working with a coach, following a strict home flipping formula<\/a>, or contracting professional consultants will hedge against this being an issue. If you go in solo you won\u2019t know what you don\u2019t know so count on missing key details and then having to pay for those errors.<\/p>\n\n\n\n
Not Considering the Target Market<\/strong><\/p>\n\n\n\n
You need to know who buys in the area you\u2019re flipping, what they\u2019re looking for, what upgrades will render profits and what are overkill (killing your profit). Study the comps, decipher what is it about the highest comps that you could incorporate into your project that will render the highest return. Don\u2019t build what you want\u2026 build what people are looking for (and can see themselves living in).<\/p>\n\n\n\n
Failing to Budget for Contingencies<\/strong><\/p>\n\n\n\n
You know you need to do this. But we mention it because the flippers who have tried to do things on their own and inevitably come to Home Flipping Workshop\u2026 they thought they were doing this. There will be so many unexpected expenses but if you have a strong game plan on how you\u2019re going to handle unexpected expenses\u2026 the expense will not longer be unexpected\u2026 you were prepared.<\/p>\n\n\n\n
You\u2019re going to have contracts, appraisals, inspections, negotiations and a whole litany of other time-consuming events in the process. Include all of this in your timeline so it works into your finances and doesn\u2019t impact your profit. <\/p>\n\n\n\n
Considering all the factors, you need a lot of energy to get through the project. To meet your timeline, falling behind is not an option in flipping property. <\/p>\n\n\n\n
To avoid unwanted delays when flipping a house, consider the following seven steps:<\/p>\n\n\n\n
- \n
- Plan: Create a detailed timeline of the entire project, including each task’s timeline, and allow plenty of time for unexpected issues to arise.<\/li>\n\n\n\n
- Research local regulations: Familiarize yourself with local building codes, zoning laws, and permit requirements in advance.<\/li>\n\n\n\n
- Hire reliable contractors: Work with experienced and dedicated contractors to ensure that the renovations are completed on time and with the desired quality.<\/li>\n\n\n\n
- Be flexible: Be open to making changes to the plan as necessary and be prepared to adjust the timeline if unexpected issues arise.<\/li>\n\n\n\n
- Stay organized: Maintain clear and detailed records of all expenses, deadlines, and progress updates to help keep the project on track.<\/li>\n\n\n\n
- Keep the lines of communication open: Maintain open communication with all parties involved in the project, including contractors, real estate agents, and lenders, to ensure everyone is on the same page.<\/li>\n\n\n\n
- Set realistic expectations: Be realistic about the timeline and costs involved in flipping a house, and be prepared to adjust the plan as needed to stay on track.<\/li>\n<\/ol>\n\n\n\n
<\/p>\n\n\n\n
By taking these steps, you reduce the risk of unwanted delays and increase the chances of a successful and profitable house-flipping project.<\/p>\n\n\n\n
Flipping A House With No Experience<\/h2>\n\n\n\n
If this is your first house flip, just because you don\u2019t have experience doesn\u2019t mean you can\u2019t do it. You can ABSOLUTELY be successful and walk away with life changing sums of money. <\/p>\n\n\n\n
Thinking you have to be a real estate expert to make money in real estate is an error in thinking. <\/p>\n\n\n\n
Likewise, thinking you don\u2019t need expertise or experience to flip and make a profit is unwise. <\/p>\n\n\n\n
You most certainly need expertise and experience if you want to walk away with the most money possible.<\/p>\n\n\n\n
So how can this be?<\/p>\n\n\n\n
You don\u2019t <\/em>need experience but you do need<\/em> expertise and experience? Which is it?<\/p>\n\n\n\n
In real estate you can borrow someone else\u2019s experience and expertise! That means you can examine what they\u2019ve done, follow the path they\u2019ve charted, avoid the mistakes they\u2019ve made, follow the same pathway that\u2019s led to success and sell your home for a huge profit.<\/p>\n\n\n\n
The top players in any sport have coaches. Take Tiger Woods! If you watch Tiger\u2019s swing today versus when he burst on the scene in 1996 you\u2019ll notice there are differences. Not only in his swing but his approach to the game. Why? Because he changed coaches over the years to improve. The best players have coaches.<\/p>\n\n\n\n
You want to be an A player and that means you\u2019re going to look for a coach to help make that happen!<\/p>\n\n\n\n
![\"\"](\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/07\/definition-of-a-coach-1024x538.jpg\")
<\/figure>\n\n\n\nSo far we\u2019ve talked much about the finances, the timeline, steps to getting started, and the obstacles to be aware of. We haven\u2019t even touched on the legal side of your home flipping deal. <\/p>\n\n\n\n
Yes, legal should definitely <\/em>be on your radar. You\u2019re talking about borrowing money, employing contractors, buying real estate, and negotiating deals. What type of legal expertise do you need? Are there boilerplate agreements that exist which will hold up in court but don\u2019t need to be drawn of from scratch? Is there a way to isolate my personal finances from the flipping arrangement? All good questions and all requiring answers you\u2019ll need ahead of time. <\/p>\n\n\n\n
In addition to legal side of the business you need to be thinking about the operations side of the business. Flipping homes is a gateway into real estate investing and if you want to build a successful real estate investment business you need to think about everything a business owner thinks about.<\/p>\n\n\n\n
- \n
- Setting a Budget<\/li>\n\n\n\n
- Getting Referrals<\/li>\n\n\n\n
- Creating Your Team<\/li>\n\n\n\n
- Setting Up Your Business<\/li>\n\n\n\n
- Finding the Right Property<\/li>\n<\/ul>\n\n\n\n
<\/p>\n\n\n\n
\u201cBut I just want to flip a home. I\u2019m not really interested in building a business.\u201d <\/p>\n\n\n\n
This may be the case, but consider this.<\/p>\n\n\n\n
First, the real money is not in flipping one home. The real money is flipping your second, third, fourth, and so on. If you\u2019re going to put in all the work to learn the flipping business to quit after one home, well, that\u2019s your prerogative, but what we have seen is that people get hooked and keep on.<\/p>\n\n\n\n
Second, flipping and real estate in general is scalable. Meaning, if you feed it, it will grow. There is much that you\u2019ll need to be involved in\u2026 but there is a A LOT that you can very easily hire someone else to do. <\/p>\n\n\n\n
You can hire a business manager. You can hire an operations manager. You can hire an office manager. You can hire a bookkeeper. You can hire every position that you don\u2019t enjoy and leave the positions and work you love the most for yourself. If you try and do everything yourself you will find that the parts that you really don\u2019t enjoy doing will consume your time and steal your joy for real estate. <\/p>\n\n\n\n
You don\u2019t want this and we don\u2019t want this for you.<\/p>\n\n\n\n
You are going to become experienced in real estate really quickly. But not all experience is equal. In your early days, work with a coach, mentor, or consultant who can help you acquire the right experience. You\u2019re going to spend the money on making mistakes or maximizing profit\u2026 it\u2019s a lot less expensive to avoid the mistakes and focus on the profit.<\/p>\n\n\n\n
What\u2019s more, a good coach will not just walk you through what to do but they will actually educate you in the process so you won\u2019t need them in the long term.<\/p>\n\n\n\n
It\u2019s True! No Experience Required In Home Flipping<\/h3>\n\n\n\n
What we have learned at Home Flipping Workshop over the last decade is that if you can flip two houses you have acquired the foundation for real estate investing success! Nearly every obstacle, negotiation, and challenge you overcome in flipping is a foreshadow of what you\u2019ll need to be equipped to achieve success in real estate investment. <\/p>\n\n\n\n
It really is the perfect gateway to financial freedom.<\/p>\n\n\n\n
You don\u2019t need experience, you just need to work with people who are experienced. That is, of course, if you\u2019re looking for the top return on your flip. <\/p>\n\n\n\n
![\"\"](\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/07\/man-in-headset-having-video-conference-on-modern-l-2022-04-27-03-30-47-utc-1024x683.jpg\")
Learning from others who have experience will save you time and money.<\/figcaption><\/figure>\n\n\n\n This is no time for pride. This is the time for stepping back and saying to someone who has been where you\u2019re going and achieved what you want to achieve, \u201cTeach me.\u201d<\/p>\n\n\n\n
Experience provides several benefits, including:<\/p>\n\n\n\n
- \n
- Improved skills and knowledge: Through experience, individuals learn from past actions and improve skills and understanding of a particular subject.<\/li>\n\n\n\n
- Increased confidence: With experience comes a greater sense of confidence in one’s abilities.<\/li>\n\n\n\n
- Better decision-making: Experience helps make informed and effective decisions by providing a more comprehensive range of perspectives and knowledge.<\/li>\n\n\n\n
- New opportunities: Experience often leads to new and diverse professional and personal opportunities.<\/li>\n\n\n\n
- Improved relationships: Experience can improve communication and interpersonal skills, leading to stronger relationships with others.<\/li>\n\n\n\n
- Greater wisdom: With age and experience comes knowledge and a deeper understanding of the world.<\/li>\n<\/ol>\n\n\n\n
<\/p>\n\n\n\n
On day one of your house flipping journey you\u2019ll find yourself asking questions that you don\u2019t know the answers to. Simple things like, \u201cIs this a good property?\u201d or \u201cIs there something about this property that will cost a lot of money?\u201d <\/p>\n\n\n\n
Again, you\u2019re looking to buy a home to turn around and sell for a profit. Yes, if you were going to hold on to the property long term you could afford to have a few unknowns come to the surface over time. <\/p>\n\n\n\n
But not in a flip. <\/p>\n\n\n\n
You need certainty. You need predictability. <\/p>\n\n\n\n
While you<\/em> don\u2019t need experience, you need someone who is experienced to help you identify the money pit from the treasure in the field. <\/p>\n\n\n\n
People who don’t get the proper training to prepare before flipping a house can face several challenges, including:<\/p>\n\n\n\n
- \n
- Overpaying for a property: Lack of market knowledge results in overpaying for a property, reducing the profit margin.<\/li>\n\n\n\n
- Underestimating renovation costs: Not accurately estimating the cost of renovations results in cost overruns which eat into the profit margin.<\/li>\n\n\n\n
- Missing Deadlines: Failure to plan for potential delays results in missed deadlines, causes the project to drag on, and increases holding costs.<\/li>\n\n\n\n
- Legal issues: Not understanding zoning laws, building codes, and permit requirements results in legal problems and fines.<\/li>\n\n\n\n
- Poor quality work: Hiring inexperienced or unreliable contractors results in poor quality work that requires redoing, adding to the project’s cost and delaying the completion timeline.<\/li>\n\n\n\n
- Inability to sell: Not understanding the target market results in a flip that fails to sell or sells for less than expected.<\/li>\n\n\n\n
- Financial loss: Not properly budgeting for contingencies and unexpected expenses results in a project that becomes unprofitable.<\/li>\n<\/ul>\n\n\n\n
<\/p>\n\n\n\n
These are just a few challenges people need to prepare for before flipping a house. Planning carefully and considering all aspects of the project is essential to ensure a successful outcome.<\/p>\n\n\n\n
- Renovation and Repairs<\/strong>: The extent of renovations and repairs needed to make the property market-ready can significantly impact costs. <\/li>\n\n\n\n
- Property Acquisition<\/strong>: The cost of acquiring a property for flipping can vary widely based on location, market conditions, and property type. <\/li>\n\n\n\n
![\"\"](\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/07\/you-are-capable-of-greatness-1024x538.jpg\")
<\/figure>\n\n\n\n![\"\"](\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/07\/money-should-not-be-a-barrier-to-your-dreams-1024x538.jpg\")
<\/figure>\n\n\n\n![\"Glenn](\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/07\/Glen-and-Amber-Schworm-749x1024.jpg\")