According to Attom Data, 5.9% of all home sales in 2020 were flipped homes. This means there is still a market for flipping homes. If you are looking for a business to start and you have a passion for real estate, home flipping would be a good business to consider. So how do you start a home-flipping business?
Draft a Business Plan
Before you start your business, you should first create a business plan for your home-flipping business. This will be key to keeping your business on track. A business plan can help you figure out things like estimated profits and how to get investors. You should take your time with this and ensure that the business plan is fairly in-depth. If you are not sure how to go about writing a business plan, you can find someone to help you out, or you can download a template online. The plan should include an executive summary detailing the purpose of the business, your vision, and high-level financial projections. You should also include the demand and competition sections.
Look into Suppliers and Contractors
Once you are done with your business plan, you will need to find contractors and suppliers who will help to keep your business going. Even if you are good with DIY projects, you will still need additional contractors to speed things up. Look for people who have a portfolio of demonstrable work. The contractor you work with should also have references and positive feedback from their projects. Tap into your network and do proper research to ensure you work with reputable contractors and hard money lenders.
Assemble a Team
You won’t be able to run a home-flipping business on your own. So, one of the things you will want to do is assemble a team. Your team members will help you keep things organized, and this ensures that you get the most out of your investment. The team will also help with research, and they can even help you identify your first property. The next thing you and your team should look into is financing. You will need money to start flipping houses. Money can be hard to come by if you don’t have a lot of experience. However, if you do your research and show hard money lenders that you are ready, you can get financing.
Flipping houses involves a lot of preparation, and it takes a lot of work. You should select competent individuals to be part of your team to ensure that you get the most out of your investment. You should also look for hard money lenders to help you with financing. Give us a call today for more information!