Schedule For Flipping House
The house flipping TV shows make it look so easy! Buy a house, do some renovations, put the house back on the market, and walk away with a juicy profit. The well-dressed, good-looking TV hosts make the fix-and-flip process look so quick and simple. So carefully determine a schedule for flipping houses. Although flipping houses in Maryland, Virginia, and Washington DC can be easy and profitable, success requires careful planning and execution. And lots of property investors are getting it done. According to the 2022 U.S. Home Flipping Report published ATTOM Data Solutions, one out of 10 houses sold in the U.S. in the first quarter of 2022 was a flipped home. That’s the highest percent since 2000. The good news is that homebuyers’ demand for fix-and-flip real estate remains strong, although some are becoming more selective due to higher mortgage rates.
Of course, there’s money to be made from fix-and-flip and fix-and-rent investments, but you’ll need to take specific steps in a specific order to earn that money. And you’ll want to do it quickly to limit the amount of time your capital is at risk. Thus, focus on speed as much as profit. By following a fix-and-flip or fix-and-rent timeline, real estate investors in Maryland, Virginia, and Washington DC can reduce expenses and speed up the project.
Step to Schedule for Flipping House
Find the Right Property to Purchase
Look for the best fixer-upper properties and prices by searching websites like Zillow or Realtor.com. Essentially, you want to buy low and sell high. Analyze the property’s financial potential to determine if it’s a sound investment with our Maximum Purchase Price Calculator. Do your research, so you know how much a home is worth and avoid paying too much.
Build a Team of Real Estate Experts
It takes a team to renovate and resell a home, so surround yourself with reliable partners:
- General contractor and/or subcontractors for roofing, electrical, plumbing, and other building trades
- Accountant and attorney to handle the financial and legal aspects of a fix-and-flip
- Real estate agent, unless you choose to market the property as “For Sale by Owner”
- Private lender offering hard money financing
Develop a Budget for Renovations
Maximize profits by renovating a house so it aligns with other homes in the neighborhood and appeals to potential buyers or renters. Avoid overdoing the renovations and turning it into the most expensive house in the neighborhood. Why? Because an expensive house will be more difficult to sell or rent out and will spend more time empty.
Secure Financing for a Fix and Flip
Real estate investors can move quickly by financing their fix-and-flip or fix-and-rent in Maryland, Virginia, and Washington DC with a hard money loan versus a traditional loan. New Funding Resources preapproves property investors in as little as 24 hours and closes in just 5 days, compared with 30-40 days for traditional financing. We move the whole process forward faster, and time is money.
Develop a Scope of Work
Without project management, you’re likely to blow much of your potential profits. That’s why a solid scope of work is the foundation of any successful fix-and-flip. The SOW, typically developed in collaboration with a building contractor, details the work to be completed and sets a draw schedule for the release of construction funds.
Complete Renovations
After laying the groundwork, it’s time for renovations. The scope of the renovations will depend on many factors, including your plans for the property. If you decide to fix-and-rent, you want durable bathroom fixtures, doors, flooring, etc., and neutral paint colors. On the other hand, a fix-and-flip requires an immediate visual appeal, like accent walls, statement lighting, and designer cabinets.
Sell the Investment Property
When the renovations are completed, it’s time to put the property on the market or advertise the house for rent. Consider staging the home and investing in professional real estate photography to speed up the process.
