Flipping Houses Part 2

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This is Part Two in a series on Flipping Houses. Please come back for the rest of the blogs in this series.

In the first part of this series we talked a lot about the actual purchase of the house that you are investing in to either “Fix and Flip” or to “Fix and Hold” as an investment. In this part of our series we are going to talk about the second step of this transaction and that is setting up timelines for doing the work of fixing up the house and getting the house “flipped”.

One of the greatest and most costly mistakes that a new investor makes is miscalculating the time lines for their new property. This is especially important when you are flipping a house. In this specific endeavor, time really is money and it is imperative that you have a good idea of how long things are going to take and when you are going to be able to work on your flip. It would be my suggestion that the first thing you should do when determining your time line would be to sit down with a calendar and actually write down the days and the times that you can REALLY work on this project. If you will be working with a contractor, you need to work with them to establish their time lines and schedules and work in there a good buffer for any unseen complications (you’ve got a 90% chance that there will be some kind of a delay, so just plan on it).

We talked about knowing your numbers in the first part of this series, and in this part it is also very important to know your numbers. As a part of your timeline you will want to account for how long the renovations will take, how long houses are taking to market, sell and close. All of those time lines will need to be accounted for in your master time line. I can’t think of any sadder situation than a well done flip getting all the repairs and updates completed and then the investor runs out of money and looses everything just because they couldn’t wait for the house to sell and close. Be sure that you have the funds available to you to be able to see this investment through to the very end.

Once you have the first two parts of this investment, the plan for the purchase and the plan for the timelines, NOW you are ready to purchase the house. Get out there and find that deal and be ready to run with your new project and investment.

In part three of this series, we will be discussing the final two steps for this type of an investment property. Please be sure to come back and join us for the final installment in this three part series.

As always, the best advice I can give is to get a great Realtor on your team to help educate you in all areas of your flip. If my team and I can be of assistance to you, please don’t hesitate to contact us at 480-415-1341 or Katie@KatieEvansProperties.com.

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