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# 8 Steps to Successfully Fix and Flip a Property
Are you excited about the idea of buying a distressed property, renovating it, and selling it for a profit to a happy family seeking their dream home? Fix and flip real estate business offers many advantages, including the satisfaction of revitalizing a property and the potential for significant profit. However, it’s crucial to be aware of the risks involved and take necessary steps to minimize them. In this article, we’ll guide you through the right way to fix and flip a property in 8 steps, along with helpful tools and resources to maximize your profitability.
## Step 1: Research
As Benjamin Franklin wisely said, “By failing to prepare, you are preparing to fail.” Thorough research is the foundation of a successful fix and flip, just as it is for any real estate deal. Start by understanding the local real estate market of the community you’re interested in, and educate yourself on the fix and flip process through reputable online resources.
## Key research areas include:
Knowing the local real estate market to identify potential opportunities
Evaluating a property’s value and potential resale price after renovation
Understanding the typical time houses take to sell in the area
Familiarising yourself with the renovation process, costs, permits, and zoning regulations
Building a reliable team, including a trusted contractor and a competent real estate agent
Develop a comprehensive business plan that outlines your goals, expectations, and financial projections for the fix and flip venture. This plan will also be useful for bookkeeping and tax purposes.
## Step 2: Find a Property
To find a suitable property, you can enlist the help of a real estate agent or conduct your search. Look for distressed properties like For Sale By Owners (FSBO) or abandoned properties available at a discount.
## When evaluating a property, consider:
Potential risks and benefits
Location and neighborhood
After Repair Value (ARV)
Comparables (recently sold properties with similar features)
Conduct a thorough walk-through to identify the necessary renovation work
## Step 3: Obtain Financing
Even with limited funds, you can invest in real estate. Explore financing options like traditional mortgages (if you qualify) or private money lenders.
**Traditional Loans:** Banks and credit unions might hesitate to offer loans for fix and flip properties, but experienced investors may have better chances.
**Private Money:** Most investors prefer private money lenders for faster and more flexible financing, though interest rates are typically higher.
**Alternative Methods:** If traditional or private lenders are not viable, consider crowdsourcing or leveraging equity from other properties with home equity loans or lines of credit.
Ensure you have financing secured before purchasing the property to avoid delays and maintain a clear budget.
## Step 4: Create a Scope of Work
The scope of work is a crucial roadmap for your renovation project. It outlines the tasks that contractors will bid on and execute. When creating the scope of work, ask four essential questions about each renovation item:
Will it add value to the property?
Will it help sell the property faster?
Is it cost-effective?
Is it necessary for the overall improvement of the property?
## Step 5: Find the Right Contractor
Selecting the right contractor is crucial for a successful fix and flip. Avoid choosing the lowest bidder and focus on a contractor who is responsive, experienced, and has a proven track record of completing similar projects.
Check their portfolio and references from other investors to assess their reliability and quality of work.
Decide whether you’ll manage the project or hire a project manager to oversee the renovation.
Obtain all necessary permits before commencing the renovation work.
## Step 6: Renovating the Property
During the renovation phase, it’s crucial to adhere to the budget and timeline to maximize profitability. Hire professionals to handle the contracting work while you focus on supervising the project’s progress. Regular updates from the contractor will help you stay informed and ensure the project stays on track.
## Step 7: Stage & Sell the Property
Once the renovations are complete, it’s time to stage the property for sale. Clean and present the property professionally with high-quality images taken by a skilled photographer. Your real estate agent will market the property and bring potential buyers’ offers.
## Step 8: Repeat the Process
After completing a fix and flip, take time to evaluate the process and learn from the experience. Reflect on what aspects you enjoyed, what challenges you faced, and what improvements can be made for future projects. Building a network of reliable professionals will be invaluable for future investments.
## Advantages and Disadvantages of Fix and Flip
Fix and flip offers several advantages, including short-term investment and hands-on learning for beginners. However, it also comes with disadvantages like budget overruns and susceptibility to market trends.
## Common Mistakes to Avoid
To ensure a successful fix and flip, avoid common mistakes such as inadequate market research, over-improving the property, taking on projects beyond your expertise, failing to write a business plan, and overpricing the home.
n conclusion, fix and flip can be a profitable real estate venture if approached with careful planning, research, and a strong understanding of the local market dynamics. Remember to learn from your experiences and continuously improve your strategies for future projects.
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Address
105 Towne Lake Parkway,
Woodstock,
Georgia
30188
Phone
678-707-8114
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\*DISCLAIMER: This website is not an offer to sell a franchise to, and is not directed to, any resident of a state or province requiring the filing or registration or other regulation of franchises unless Red Barn Homebuyers LLC is registered to sell franchises in that state or province (if necessary), has prepared a disclosure document in compliance with the laws of that state or province and has received approval of this website as franchise advertising, if required in that state or province. The states requiring registration or filing of franchises include: California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin. There are other states and provinces that require disclosures to prospective franchisees. No franchises will be offered or sold by Red Barn Homebuyers LLC in any of the listed states unless and until the franchise offering has been registered and declared effective in that state and the Franchise Disclosure Document required by that state has been delivered to the purchaser before the sale and in compliance with applicable state and federal laws regulating the sale of franchises. No franchises will be offered or sold in any other state or province regulating the sale of franchises until a disclosure document required by that state or province has been delivered to the purchaser before the sale and in compliance with applicable state, provincial or federal laws regulating the sale of franchises.
## Mike Kovak
### Success Coach
Driven by a passion to serve others & generate results, Mike brings his 30+ years of sales & marketing experience to the Team as our Success Coach, working closely with each of our Franchisees to strategically design & implement a unique plan to help grow their businesses.
Enhanced by his latest coaching & business development experience in the mortgage lending arena, he brings his success of managing, scaling & selling their experiential marketing agency after a 20 year run. Mike’s creative & results-driven entrepreneurial skills present a powerful partnership with our Team to make a difference for those we serve. He’s a connector, motivator & a leader with an enthusiastic personality who will go the extra mile to help everyone on our team win.
Mike & his wife, Sherry, are proud parents of 4 teenagers, and is an All-American Triathlete having competed in several Triathlon World Championships, including the upcoming Championship in Spain next year.
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## Michele Sims
### Recruitment Manager
Born and raised in Georgia, Michele is a graduate of Eastern Kentucky University. With more than 25 years of experience with sales and operations, she has the background and the passion to pursue real estate deals. That zeal resulted in Michele and her husband Chris acquiring their first long-term rental property a little over a decade ago. That deal was all it took to get them hooked.
Michele and Chris are the proud parents of two daughters, and have three dogs as part of the family. The pair loves sports, and are big Auburn fans (something that the rest of us forgive them for!).
## Kendra D’Eon
### General Manager
Running a successful franchise operation requires having someone to oversee the process. That’s where Kendra comes into the picture. As a key part of the operations and project management effort, she is always working to oversee the company’s overall operations to ensure both our team and members are able to be productive and prosperous!
Kendra is married to her high school sweetheart Phil and they have 2 sons. She lives in New Hampshire and loves to take advantage of the ability to access the beaches, lakes, and mountains she has available all around her
## Tracey Cooper
### Coaching Coordinator
After earning his degree at Auburn University in Auburn, AL, Tracey chose to enter the IT staffing industry. His first employer was a national staffing firm, where he eventually became the manager of their Washington, DC office.
After five years with the firm, Tracey and four others left to form Prestige Staffing. This firm expanded from the original five partners to more than a hundred employees. Over time, Prestige established offices in Austin, Atlanta, New York, Chicago, Dallas, and St. Louis. All told, he invested 15 years in the firm.
Seeking a change from the corporate treadmill, Tracey sold his interests in Prestige and made the leap into real estate. 2018 was a pivotal year, with Tracey entering a mentorship program with Ken. Since that time, he’s acquired and sold more than 75 properties. His approaches vary, ranging from buying and holding, fixing and flipping, and wholesaling.
## Dave Emrich
### Franchisee Mentor
Dave first came to RED BaRN in 2009, beginning his time as the General Manager. Over the years, he’s overseen a number of company aspects. They include attention to company finances, construction tasks, flipping properties, and real estate functions. Thanks to his more than four decades of experience, he’s a big part of what has made RED BaRN such a success.
## Jessica Stansel
### Accounts/Office Manager
With RED BaRN since 2010, Jessica was born in Canton, GA. Her support as the company flipped hundreds of homes has proven invaluable. When she’s not busy troubleshooting and keeping the office running smoothly, Jessica is looking for ways to make the already-efficient office even better.
Jessica likes to get away for beach vacations, often somewhere along the Florida Panhandle. Closer to home, she loves taking her two daughters to softball games and any tournaments that may come up during and at the end of the season.
## Carolyn Versele
### Onboarding Manager and Franchisee Support
Carolyn joined RED BaRN in 2020, just as the business was about to film “Flipping Showdown.” Owing to her expertise, she quickly became a valuable resource when it came to managing social media and vendor trade outs. She also handled a number of tasks associated with different RED BaRN design projects.
Earning her real estate license in early 2022, Carolyn is now a key member of RB Realty. She and her husband have four children, and love to vacation in Puerto Vallarta, Mexico when the opportunity arises.
## Kevin Corsini
### CEO
In addition to being the Chief Executive Officer, Kevin D. Corsini is also a co-founder of RED BaRN Homebuyers. He brings a varied work history to the business. In times past, Keven has worked as a college president, a business executive, and as an ordained pastor. He also taught at university level for more than 10 years, and holds a PhD in the field of Mental Health.
Kevin began the journey with investment properties over two decades ago, finding another exciting career to pursue. Today, he and his wife are the proud parents of five children ranging from a newborn to age 22. The family is a big fan of jeeping and camping, hobbies they pursue whenever possible.