Flipping a House Checklist
When you want anything to run smoothly, it’s generally wise to make a checklist. When you want your next house flipping to run smoothly, it’s recommended to make, and follow, a flipping a house checklist.
Find a good deal
Doing due diligence and researching the area and profitability of a home is the first step to flipping a home.
- Choose how you want to find a house to flip - Auctions? Work with a real estate agent?
- Walk through the properties
- Contact a lender
- Obtain a pre-approval letter from a lender
- Start networking with contractors.
Real estate investing is tricky, and more times than not, your offer won’t be accepted. However, you need to be prepared to make counteroffers, negotiate, and have a clear understanding of the issues with the property.
- If you’re unsure about renovation costs, get quotes from contractors
- Look at your finances, and calculate the maximum amount you’re willing to spend
- Make an offer
- Negotiate, and be willing to walk away
When looking to finance the house flip, there are a few loan options available to you. Renovo can help determine what your best option is.
- Choose your lender after confirming they can meet your needs
- Give the lender all required documentation
Now that things are moving along, you need to have the property inspected and turn on utilities like water, electricity, and gas.
- Schedule a home inspection
- Coordinate the date with your contractors
- Finalize negotiations for contract of sale, if necessary
It’s recommended to have a copy of the HUD-1 Settlement Statement when going into settlement. This shows a line-by-line breakdown for the buyer and seller of the transaction costs and payments.
- Confirm your closing date
- Bring all funds and required documentation to the closing
- Make copies of keys & give to contractors
Prepare for renovation
Now that you’re the proud owner of a house to flip, you need to prepare for the renovation. You may want to create a secondary checklist of all the items that are being renovated during this process so you don’t miss anything.
- Sign any last-minute renovation contracts with contractors
- Turn on the utilities
- Pull all necessary permits
- Order a dumpster
- Take the “before” pictures
Here’s where the actual, physical work comes in. You should have anticipated completion dates for each draw and review the work the contractors are doing regularly.
- If you’re not performing construction, visit the site daily
- Schedule draw and permit inspections
- Do a final walkthrough with the contractor and inspector for the final draw
List the property
Now that you’re ready to sell, it’s recommended that you get the house professionally cleaned. You should consider staging the house to quicken the sale process. If you use a realtor, they will do the majority of the marketing and negotiations.
- Get the house professionally cleaned
- If using a realtor, sign a listing agreement
- Take the “after” pictures
- Price the property appropriately
- Evaluate, negotiate, and accept an offer
- Schedule the settlement date and post-home-inspection requests
- Bring keys and all necessary documentation to the settlement
- Take your check to the bank - you’ve just flipped a house!
Contact Renovo today to learn more about successfully using this flipping a house checklist.