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The Art of Fix and Flip Real Estate

Turning Houses into Homes and Profits By Chet the Robot This article is the result of a ChatGPT query. We requested this article after learning of a last-minute change to our story budget that left a 900-word hole and received this response within 45 seconds of submitting this request: “Please write a 900-word article on fix and flip real estate.” When evaluated using the Plagiarism Checker by Grammarly, the article (which appears in its original form with no editing), received red flags for plagiarism, spelling, grammar, and “additional writing issues.” Grammarly green-flagged the article for conciseness, word choice, punctuation, and readability. Readers should note some plagiarism checkers will flag quoted and cited materials, but this article came with neither quotes nor citations. We have not made any changes to this material, nor do we assume any responsibility for the material. This is one-time, tongue-in-cheek demonstration for educational purposes only. This story also illustrates why ChatGPT will never replace professional writers. In the dynamic world of real estate investment, the fix and flip strategy stands out as an exciting and rewarding venture. This practice involves purchasing distressed or undervalued properties, renovating them to enhance their market appeal, and then selling them for a profit. Popularized by television shows and real estate moguls, fix and flip has become a sought-after investment approach for both seasoned investors and newcomers to the industry. In this article, we will explore the intricacies of fix and flip real estate, including its benefits, challenges, and essential steps to ensure success. The Appeal of Fix and Flip Real Estate The allure of fix and flip real estate lies in its potential for substantial returns on investment. Compared to long-term rental properties, which generate steady cash flow over time, a successful flip can result in a quick and lucrative payday. Additionally, it allows investors to actively engage in the transformation of properties, which can be both creatively satisfying and financially rewarding. Furthermore, the fix and flip strategy is relatively accessible, making it an attractive option for newcomers to the real estate investment scene. It doesn’t require a long-term commitment like rentals, and with the right approach, investors can minimize risk and maximize profits. Challenges and Risks While fix and flip real estate offers enticing benefits, it is not without its challenges and risks. First and foremost, the market can be unpredictable, and property values can fluctuate rapidly. Investors must possess a keen understanding of the local real estate market and be prepared to adapt to changing conditions. Another potential hurdle is accurately estimating renovation costs. Overestimating costs can eat into potential profits, while underestimating may result in financial strain or incomplete renovations. Diligent research and consultations with experienced contractors are essential to make informed estimates. Moreover, unexpected issues can arise during the renovation process, such as hidden structural problems, permitting delays, or unforeseen material expenses. These surprises can extend the timeline and increase costs, impacting the overall profitability of the project. The Key Steps to a Successful Fix and Flip Market Research and Property Acquisition The first step in any fix and flip endeavor is conducting thorough market research to identify promising locations and potential properties. Look for areas with rising property values, high demand, and a strong resale market. Once you find a suitable property, negotiate a fair purchase price to ensure a healthy profit margin. Financial Planning Before embarking on the renovation process, develop a comprehensive financial plan. This plan should encompass the purchase price, renovation costs, carrying costs (such as utilities, taxes, and insurance during the renovation period), and the expected selling price. A well-thought-out budget will help you stay on track and avoid financial setbacks. Renovation Strategy Design a renovation strategy that maximizes the property’s market appeal without overspending. Focus on essential improvements that add value, such as updating kitchens and bathrooms, improving curb appeal, and enhancing energy efficiency. Strike a balance between modernizing the property and catering to the preferences of potential buyers. Assembling a Reliable Team Surround yourself with a competent team of professionals, including contractors, real estate agents, and inspectors. Having a reliable network of experts can streamline the renovation process and ensure high-quality workmanship. Time Management Time is of the essence in fix and flip projects. Develop a realistic timeline for the renovations and aim to complete the project as efficiently as possible. Delays can lead to increased carrying costs and may affect the overall profitability of the venture. Staging and Marketing Once the renovations are complete, invest in staging the property to make it appealing to potential buyers. Professional staging can significantly impact a buyer’s perception and speed up the selling process. Employ effective marketing strategies, including online listings, high-quality photographs, and virtual tours, to attract a broad pool of potential buyers. Conclusion Fix and flip real estate is a thrilling and potentially profitable investment strategy that combines entrepreneurship with creativity. While it presents its fair share of challenges and risks, proper planning, market research, and a competent team can help investors navigate these hurdles successfully. By carefully selecting properties, managing finances, and executing thoughtful renovations, real estate enthusiasts can turn houses into inviting homes and achieve satisfying financial returns in the process. Remember, success in fix and flip relies on a blend of vision, expertise, and strategic execution.

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Smart Upgrades

Leverage Renovations to Maximize Your SFR Investment Value By Doug Ellis Renovations can enhance a home’s value, but owners and operators of single-family rentals (SFRs) have special considerations. If you are thinking about a renovation, it is important to determine your goals for the project. For example, are you hoping to increase your monthly rent, attract quality tenants, reduce turnover or decrease long-term maintenance costs? Because beyond their inherent costs, rental renovations require properties to be vacant, which cuts into your return. So, when does a renovation make sense for your SFR and what do you need to know about renovations? Here are a few key observations from MCS’s team of reno experts to consider as you decide if renovating a rental property makes sense for you. When Renovating a Rental Property Makes Sense Because renovations can be costly and may not provide an immediate return on investment, SFR renovations may not always be a priority. There are two key times when renovating can make sense: At acquisition The best time for rental renovations is typically when the property is first purchased. Newly acquired SFR properties may need updating to attract quality tenants or to achieve target rents, so renovating properties as needed when you add them to your portfolio may make the most financial sense. At the end of a holding cycle Depending on whether you are on a five- or 10-year holding cycle, hitting this milestone could be the right time for rental renovation. If a property is still in good condition at the end of your first cycle and you want to hold on to it, this can be a good time for renovating a rental property. In this case, your renovation could include making updates that are in line with market demands as well as replacing bigger-ticket items that were not included in the initial renovation. What about during tenant turns? This might seem like an optimum time for a large renovation. But when a tenant moves out, repairing damage, patching holes and updating only the essentials is more likely to get you the most bang for your investment buck because it enables you to get the next paying renter into the property as quickly as possible. That said, tenant turns can be a prime opportunity to review major appliances for age and/or issues and to replace and standardize products across your portfolio. Upgrades That Can Lower Your Maintenance Costs The focus of rental renovation is often on cosmetic elements, but replacing larger mechanical items can help reduce the costs to maintain your property. For example, if your air conditioning, refrigerator or water heater are within a few years of their life expectancy at acquisition, it can be a good time to proactively replace them.  This tends to be the case for sump pumps in newly acquired properties as well, because you often will not know how long one has been there or how it has been maintained. Replacing aluminum wiring in older homes with copper (to reduce fire hazards) is another common upgrade. There are also smaller fixes to consider, from replacing wax rings on toilets to smoke detectors and/or their batteries to switching to energy-efficient light bulbs throughout the property. To help ensure you maximize energy efficiency and your investment, consider starting with an energy audit to see where you stand. Rental Renovation Essentials: Scope Levels and Value-Adds When you do decide to renovate your SFR, keep in mind two things: the scope level for your property and the value-adds that an SFR property services partner can provide. Renovation scope levels Most of the time, you as the owner/operator will determine the scope of the renovation, providing your services partner with basic guidelines (a knowledgeable renovation partner can help with scoping or make recommendations if you need it). Your scope should include room-by-room aesthetic and mechanical checks (with photos included) for potentially required upgrades, such as flooring, lighting, paint, plumbing, electricity and HVAC. Be as detailed as possible to ensure all your requirements are addressed in the pricing and bidding process. Any safety hazards should also be identified and remedied. Value-Adds from Your Partner An experienced SFR property services partner like MCS can help you get the most value from your investment while staying within your budget. For example, your partner can assist with things like:  »         Value engineering // Our team of experts is trained in value engineering your renovation project. By thoroughly evaluating your properties to consider the cost/value ratio for various potential renovation options, MCS works to provide the best performance and appearance for the least amount of investment.  »         Data collection // Having a database that catalogs the fixed assets within each home you own, with details like each item’s age and service date records, is essential not just for renovations but for general property maintenance. Without this information and the related checks, you are more likely to end up with expensive capital investment repairs and replacements later. By tracking appliances and major systems within your properties for you, our team can alert you regarding potential issues that could impact your investment.  »         Ongoing maintenance // Having a trusted SFR partner like MCS manage your maintenance needs means multiple small and large maintenance considerations (and managing their timing) are off your list, from smart home installations to changing out batteries in smoke detectors or carbon monoxide units to replacing HVAC filters. We can also help you build a proactive preventive maintenance plan so these checks do not get missed.             Having a plan in place can reduce or prevent potential repairs, extend the lifespan of your mechanicals, and provide data you can use to make decisions regarding capital-investment replacement and preventive maintenance schedules.  »         Occupancy checks // During a tenant turn or an acquisition renovation, as your provider, we can help secure your property via regular occupancy checks to ensure no one has illegally moved into the vacant home until it is tenant-ready again. Depending on the state of

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Buy and Hold Property Management

Accelerating Occupancy Through Timely Field Services By Nickalene Badalamenti-Kalas Increasingly, buy and hold property managers and investors are looking to move at-risk or delinquent assets to long-term, income-generating homes. In these scenarios, time literally is money. As a property remains unoccupied, it is not only failing to generate income, but it is also generating losses as maintenance costs continue to accrue to keep buy-and-hold properties in tenant-ready condition. Moving properties quickly into tenant-ready condition also works to eliminate community blight.  Speed and efficiency are of the essence as are code compliance, accuracy of inspections, the quality of field work provided, and completeness of documentation. A difficult order to fill without help. Engaging an Experienced Partner Savvy property managers and investors tackle this challenge head-on by engaging an asset management team who can deliver:  »         A full complement of turn- and make-ready services to stabilize properties and values  »         A nationwide network of field service professionals who can respond quickly to any eviction, rehab, repair, maintenance, or asset management requirements  »         A mastery of code and regulatory compliance and documentation, to forestall preventable violations, added fees and costs  »         Property registration services  »         Disaster alert technology to forewarn managers and investors of potential storm damage to their assets, as well as an experienced field service team to perform asset stabilization services Here are the essential elements in a market- and tenant-ready property strategy. The Ideal Tenant It is an axiom in the buy-and-hold universe that the quality of a home — and by extension, the quality of a community — determines the quality of the tenant. Good tenants are conscientious custodians of a property. They don’t want a “rental.” They want a home of which they can be proud and make their own, and care for as long as they live there. For many investors and property management companies, this presents a shift in perspective, from numbers on a spreadsheet to individual investments that generate maximum value to owner and tenant alike. The long-term, successful buy-and-hold strategy begins with the understanding that a well-manicured, properly maintained, code-compliant property attracts tenants who want to stay and compound the asset’s value. Vigilance is Key Proper care and monitoring of at-risk homes is essential. Monitoring and responding to delinquency trends, resident and municipal concerns, and proactively stabilizing each asset will begin to enhance property values. Inspection and Scope Services In the buy-and-hold market, inspections are critical, whether prior to or after acquisition, to determine occupancy, document property condition, and establish the scope of turn- and make-ready services required for bringing the property to tenant-ready status. All inspections should incorporate a full set of geo-tagged and time-stamped photos in the inspection report, to determine scope of work needed and begin the bid submission process for completing all field services needed to quickly stabilize the property for the next occupancy. Field Services There is a host of field services that investors and property management companies should consider when preparing their assets to attract quality tenants. These encompass debris removal, lock replacement, general rehabilitations, HVAC, plumbing and electrical work, preventive and seasonal maintenance, landscaping, snow and ice removal, and various other occupied and vacant maintenance needs including roofs, flooring, pools, fences, and painting. Enhancing both the visual and functional appeal of assets should include increasingly-expected smart home installations for locks, thermostats, automated irrigation systems, security and camera systems. Up-grades to kitchens, bathrooms, and landscapes have an immediate appeal for prospective occupants, and communicate the owner’s commitment to tenant satisfaction. Registration Services Asset registration is a highly specialized service that is increasingly required by municipalities, to ensure full compliance with varying regulations across different jurisdictions. These services include verifying jurisdiction through portfolio scrubbing, monitoring evolving local, county, and state ordinances, registering, re-registering, and de-registering assets, processing required fees and tracking refunds, and assigning local contractors for emergency services. Compliance: Peace of Mind Throughout the process of transitioning a property to tenant-ready status, there exists a minefield of compliance and regulatory mandates that must be navigated. A field service partner will assist clients in proactively handling code compliance to prevent costly and time-consuming violation remediation. Should a violation be issued, they should very quickly acquire the relevant specifics, reports and documentation, and deploy expert field services professionals to remedy the situation. Pre- and Post-Disaster Asset Stabilization An increasingly critical asset stabilization service is pre- and post-disaster property oversight. Developed by Five Brothers, CLADE™ Disaster Alert System is an advanced tracking and mapping technology to help managers and investors monitor property status in the advent of natural disasters or severe weather events. It leverages geospatial technology to help determine the likelihood of damage to properties potentially in a storm path, to allow proactive measures to reduce or prevent damage, and allows easy ordering of pre-disaster services that include board ups and electrical disconnects. If damage is inevitable, CLADE technology identifies which properties have likely been impacted, and generates a report sent directly to the manager and/or investor. Once the area is deemed safe to enter, post-disaster field service orders include on-site damage inspections, board removal, debris cleanup, tarping, remediation and restoration work. Electrical reconnects are promptly addressed as well. The Tenant-Ready Portfolio: Sustaining Community Value The considerations outlined lead not merely to new occupancy, but enduring occupancy that drives asset stabilization, increases value, and enhances communities. The need for urgency cannot be overstated. With a strong field services partner, at-risk properties are transformed into appealing, desirable homes that attract coveted tenants, and fuel continuous and long-term value — this is the ideal outcome.

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From Successful Lawyer to Successful Real Estate Entrepreneur

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Doing What You Enjoy is Key to Success and Happiness Paul Neil is an independent business owner with HomeVestors® of America, Inc. in Phoenix, Arizona, which he started in 2020 after practicing law for twenty-one years in both Arizona and the Virgin Islands. His primary focus is on fix-and-flips, and he has recently started building his personal real estate portfolio. Life Before HomeVestors Paul attended the Pepperdine University School of Law and for 21 years practiced with several of the largest laws firms in the Phoenix area, specializing in civil litigation, commercial litigation and HOAs. Ironically, after his first year of law school, he realized he did not want to be a lawyer, but he had already accumulated $30,000 in student loan debt with more to come. In a profession he felt was not a good fit for his interests, he established three criteria to leave the legal profession: (1)        his new career would need to let him spend more time with his family (2)        his new career would allow him to be in control of his life (3)        he would need to match or exceed his income from practicing law while simultaneously building long-term passive retirement income. Enter HomeVestors! The Beginning of Cane Bay Properties In 2020, Paul was introduced to HomeVestors by a friend and a fellow HomeVestors independent business owner. He quickly bought his first property in November 2020 and never looked back. In 2021, Paul bought 25 homes, most of which were fix-and-flips. “I enjoy walking into a house and seeing the potential,” said Paul. “We play a vital role because we not only improve houses and help people in difficult situations, but we aesthetically improve neighborhoods and communities.” In 2022, Paul bought 24 homes, meeting his established goal of buying an average of 2-3 homes per month. The Phoenix real estate industry began to change quickly during the latter part of 2022 because of economic uncertainty and back-to-back interest rate hikes. Paul’s buying slowed as a result. While Phoenix is one of the most profitable markets and also one of the most competitive, it was also one of the first markets to get hit when the market started to change. In response, Paul implemented advice from Michael Ludlow, his HomeVestors Development Agent, to successfully navigate the fast-evolving market. Present Day Nearly three years in, Paul feels HomeVestors has generally satisfied his three criteria for leaving the legal practice to fix and flip real estate. He works more than he originally anticipated but that is admittedly by choice given his personal income and retirement goals. The real estate market in the Greater Phoenix Metro Area has improved enough that Paul and his wife, Racquel, have begun building their personal portfolio of rental properties, with Racquel leading the charge. The Neil’s recently purchased their second HomeVestors franchise, Teague Bay Properties, in Northern Arizona. Advice from an Expert “I followed the HomeVestors systems from the very beginning and relied heavily on my Development Agent for his expertise and mentorship. One thing he strongly advised as the market shifted last year is to not chase the market down. He taught that ‘Sometimes you just have to rip-off the band aid and drop the listing price on losing properties to a number that is materially below what you believe is the existing market value. If you’ve truly done that then the buyers will come.’” “My other Golden Rule: No deal is better than a bad deal.” Homevestors What exactly does it mean to be a HomeVestors® business owner? Owning a real estate business is life changing and naturally comes with risks! When you become a HomeVestors business owner, you get immediate access to motivated seller leads, financing resources for qualifying purchases and repairs, one-on-one coaching with your local Development Agent, proprietary software for analyzing properties and deals, and access to a nationwide network of coaches and peers. Your house-buying business is yours and you run it as your own venture with a focus toward your individual business goals. If you are interested in a franchise, call 866-249-6932, email Sales@homevestorsfranchise.com or visit www.homevestorsfranchise.com. Each franchise office is independently owned and operated.

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Incentivizing Residential Leasebacks

A Democratic Solution for Real Estate Investment By Danny Kattan The residential real estate market finds itself in the crosshairs of government scrutiny. The government is blaming residential investors for purchasing properties for rental purposes. Officials argue that these properties should be obtained by those needing occupancy. However, this perspective oversimplifies a complex system and overlooks some significant contributions investors make to the stability of the housing market, the efficient supply of rental properties and the broader financial ecosystem. In 2008, I, along with my partners, began modestly purchasing single-family properties in South Florida. Over time, we expanded our portfolio and our operations grew organically. We owned and managed 400 single-family and 400 small multi-family properties, which we eventually sold in 2018. Throughout this journey, it became increasingly clear to me that real estate investors were the glue holding the economy together. Without their involvement, hundreds of thousands of properties would have remained vacant, leading to blight in neighborhoods. Attacking SFR investors can have unintended consequences during the next economic downturn. Residential Investors are Key In truth, residential investors are the bedrock of a robust housing system. Not everyone is able to or even desires to purchase a home. Some individuals, by circumstance or choice, prefer the flexibility renting provides. It is crucial to maintain a vibrant residential rental market as it caters to a diverse range of individuals at various life stages. This includes students seeking affordable living options, professionals in transitional phases, newlywed couples establishing their first home together and retirees desiring a maintenance-free lifestyle. Each of these groups, and many others, rely on the flexibility and convenience that rental properties provide, underscoring the importance of a robust rental market in our society. It is the investment by others in residential properties that facilitates this choice. It is important to acknowledge that not everyone opts for investing in the financial markets. Many individuals perceive real estate as a more tangible and stable investment. “Demonizing” investment in residential real estate could inadvertently push more people towards the potentially volatile financial markets. Moreover, real estate investment is a vital pathway for wealth creation. Numerous individuals and families have amassed substantial wealth through the acquisition of rental properties. Discouraging this form of investment not only hampers potential investors but also diminishes the overall housing supply. This could inadvertently escalate rental costs, affecting those who rely on rental properties for their housing needs. Fostering a healthy environment for residential real estate investment is crucial for both the stability of our economy and the well-being of diverse societal groups. Residential Leasebacks The drive to convert renters into homeowners has been a recurring theme in public policy discussions. While this is an admirable goal, it cannot be the sole focus of our efforts to improve the housing market. To create a more stable and diverse real estate economy, I believe that the key is to actively encourage ‘mom-and-pop’ investors to invest in rental properties. One of the ways to encourage participation in the market while maintaining stability and promoting increased housing supply is through incentivizing residential leasebacks. A residential leaseback is an agreement where the seller of a home leases it back from the buyer for a specified period after the sale. I believe that the market should embrace residential leasebacks as this category can be a catalyst for change in the market. A traditional real estate investment model might be daunting for a new investor, given the potential issues related to property management and tenant relations. Residential leasebacks offer an alternative that could attract first-time investors to the real estate market. Leasebacks could be the gateway to real estate investing for financially capable individuals spooked by the complexities of traditional property investments. This mechanism has several benefits for investors while offering a lifeline for homeowners who might be hesitant to sell their properties due to uncertainties about their next dwelling place. With residential leasebacks, homeowners can unlock the equity in their properties without uprooting their lives. This influx of funds can be directed towards family needs, starting a business, or other financial goals, effectively pushing a ripple effect on the broader economy. Furthermore, residential leasebacks tend to create more conscientious tenants. After all, who would treat a property better than those who once owned it? This aspect significantly reduces operational expenses related to property maintenance and potential damages. Over time, these savings can translate into lower rental costs, providing relief to the renter population while making the housing market more accessible. Many individuals hesitate to invest in rental properties out of fear of potential tenant issues. Yet, if we can assuage these concerns and promote small-scale investment, we can simultaneously increase housing inventory and reduce rental costs, benefiting both renters and investors. The beauty of residential leasebacks lies in their versatility. They can solve several societal challenges, such as providing financial relief for retirees, helping individuals navigate through a divorce or simply offering a much-needed cash injection for those in need. From an Environmental, Social, and Governance (ESG) perspective, residential leasebacks can contribute positively to societal welfare. Environmentally, they promote efficient use of existing housing stock, reducing the pressure to build new properties. Socially, they offer homeowners an option to unlock equity. In essence, residential leasebacks create a win-win scenario. They offer homeowners financial flexibility while providing investors with a more manageable and potentially less problematic route to property investment. Conclusion If the government truly wishes to create a more democratic real estate system that benefits all stakeholders, incentivizing residential leasebacks should be a part of the strategy. By doing so, we can attract smaller, first-time investors to the market, increase the housing supply, and create a more balanced, equitable, and resilient housing ecosystem. The residential investment market should not be an adversary but an essential partner in maintaining the health of the housing system. It is time to shift our perception and recognize the value small investors bring to the table. Promoting residential leasebacks can be a step in that direction.

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The Fix-and-Flip Playbook for Success

4 Key Points for Successful Flipping By Darryl Shelton Buying property, doing some renovation work, then selling rehabbed property is one of the most logical ways for home investors to get started in real estate investing. You likely have heard about this with all the popular press and TV Shows like Flip or Flop…but what does it take to have some success? House flipping is the strategy of purchasing properties with the intent of selling them for a profit. The key is to buy low and sell high by finding distressed properties, making repairs and updates to the property, and selling for a higher price than your purchase price plus repair costs. Sounds simple, but not everyone is successful. Here are four key points you must understand for successful flipping: 1. Find the Right Property Experienced home flippers will tell you that part of finding the right property is having an initial vision for the changesto be made. Ask yourself:  »         Do you want to change the layout and have potentially significant renovation as part of the project?  »         Is this a project that will focus mainly on upgrades? Focus on networking to help find the right real estate agent, who then will help you locate and purchase properties. The goal is to find a property for which you pay no more than 75% of the property’s after repair value (ARV) minus cost of repairs needed to renovate the property. When finding your property, do your best to ensure there are no unforeseen structural issues. Have a professional home inspection. It is worth the price when you consider the overall cost of a bad investment. 2. Know Your Lender Financing Options Managing your budget and the specific costs for each individual project is critical to success in flipping homes. As part of that budgeting process, find a good reliable lender that will work with you to discuss the project, understand your business and its goals, and then recommend financing options for your project. For example, at FMS Investor Financing (where I work), we have multiple funding options for both individual investors and entities, including short-term fix-and-flip bridge loans that may be used for projects. Additionally, some lenders will provide fix and flip lines of credit options. Setting up a line of credit will allow a borrower to draw down funds needed to purchase and rehab properties. This allows time to purchase, rehab and sell the property for a profit. Lenders will usually work with experienced and non-experienced investors. Wondering what you need to get funding approved for fix-and-flip projects? Most lenders require: A substantial down payment Most lenders require you to have 20-30% of your own liquid funds to serve as the down payment, depending in part on your investment experience and loan amount requested. Qualified liquid funds include, but are not limited to, depository accounts such as checking, savings, and/or money market accounts; certificates of deposit; and mutual funds. Stocks, bonds and retirement funds could also be part of the mix. Lenders also require FICO scores (in most, but not all cases) and a higher score may get you a little lower down payment, depending on the lender. Experience Many lenders factor in experience, looking at how many projects you, as an investor, have completed over the past three years. A completed project is one that you have purchased, rehabbed, and sold. Lenders may use rental properties as experience as well. You can usually close a loan in your personal or business name. Financing terms are typically 12-24 months with an option to extend the term. This will allow you time to purchase, rehab, stay on budget, and sell the property for a profit. 3. How to Rehab the Property You do not need to be a home-repair expert to have success as a fix-and-flip investor, but you do need to work with the right contractor. There are countless ways to find a good contractor (websites, local real estate associations, etc.), but the best place to find the right contractor is through referrals from other investors. Speak with the other investors about the contractor’s ability to stay within the rehab budget, the quality of their work and meeting deadlines. Once you have identified a short list of potential contractors, set up initial conversations to find out more about their background. Ask about:  »         Their experience  »         Equipment they own and use  »         Whether they have employees, subcontractors, or both  »         How many people are on their team  »         How to request a bid  »         How they approach a project  »         Projected time to complete the project  »         How they will manage a budget Once you have selected a contractor, establish a plan to obtain the necessary permits. An experienced, reputable contractor should know what permits you need and how to get them. Do not skip this step. Getting the necessary permits are often even required by law, and you would not want your project to be interrupted or even stopped due to lack of proper permits. 4. Selling the property After completing all renovations, do a final walk through and inspection to ensure that the project has been completed and the property is ready to sell. You will probably need to stage the house to provide contents and context for the buyers. Make sure you have a good online presence as nearly all buyers today spend part of the shopping process reviewing properties digitally. Set your target price and your minimum based on both the current market as well as how well you maintained your cost structure and budget. The goal is to make a profit. You can also consider using an agent, which will ultimately be your decision. It’s Time to Put the Playbook in Action So, now you have the playbook. Fix-and-flip investing is not easy. Activating your plan and seeing it through involves discipline, diligence, some hard work, being smart, and even creativity, but the rewards can be both fulfilling and financially beneficial. It’s time

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