How do you write a house flipping business plan?


Quick Answer

Write a business plan for a house flipping company, which specializes in buying and quickly selling properties, by outlining a clear revenue source for the business, estimating the initial and recurring operating costs of the company and the process and analyzing the real estate market in the area. The plan should also include strategies and costs for marketing the company's services as well as the homes it plans to sell.

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Full Answer

Creating a business plan for a house flipping company begins with a realistic evaluation of the time and financial commitment to carry out the procedure of purchasing a home, making repairs and selling it in a timely fashion. This includes listing all of the costs associated with the company, such as the cost of a vehicle to visit properties, the fee for a broker's license to handle the legal issues regarding buying and selling homes, and the cost of the construction. In particular, many house flipping businesses require contracts with several construction specialists, such as carpenters, painters, plumbers and electricians.

After estimating the expenses of the business, the plan needs to include details about the starting revenue and recurring sources. If the business owners do not have enough money on hand to purchase the first home, it may be necessary to obtain a home loan or a small business loan to cover the costs. The plan also needs to include details about the estimated cost and demand of real estate in the area as well as strategies to promote the sale of the house once the construction finishes.

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