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Everything You Need to Know About House Flip Planning


A very important aspect fix-and-flip is your house flip planning. 

The planning is the most important part of the process because it will keep you from spending more money than you need to. Hire an inspector to look at the home and they will tell you how much you will need to spend in order to fix it up.

When flipping houses, there’s one thing that matters most: Location, location, location. You’ve heard it a million times already but that’s only because it’s the most important factor in valuing real estate. When it comes to buying a property to flip, nothing is more important than the location. This means that everything from the school district to the amount of sidewalks should be taken into consideration.

Don’t underestimate the costs. It’s better to expect to pay more than the inspector tells you. It’s better to have money left over than to not have enough.

The planning is the least interesting and the longest part of the process but it is the most important. The actual financing, purchasing, rehabbing, and selling shouldn’t take more than a year and the more planning you do, the more money you’ll save and the less time you’ll spend.

The next part of planning is financing. Hard money loans are very popular among house-flippers. This is the kind of loan that you will not get from a bank. 

If you’re not willing to put in the effort, you may as well stop now. Flipping Houses isn’t an easy way to make money overnight. In order to make money (and you can make lots of money) you need to put in the effort. Do your research and learn everything you need to know about the property and the neighborhood. There is risk involved with any investment but your research and due diligence will help minimize risk.

If you have a structured investment plan and correctly calculate the amount of money you’ll need, you should be able to pay back the note without a hitch and make a lot of money in the process.

Traditional financing can be difficult to obtain because of strict regulations and crowd funding can take too long to put in place.  If you are flipping property, hard money is your best option.

According to Rehab Financial, “Typically, most rehab lenders will lend between 65 and 70% of ARV (after repaired value). There is a very good reason for that. A house flipper is generally borrowing money on an investment property, with the expectation of making money from the project. If the cost of the property plus rehab exceed 65 or 70% of the ARV, it is possible that there will not be enough equity in the deal for the investor to make money in the end.”

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