What are the basic steps of the process in flipping a house? Jordan Brewer
1. Find a property: Find a potential property to flip.
2. Value the property: Use our Property Value Analysis worksheet to estimate the ARV of the property. Get a contractor's bid or estimate the repairs needed on the property. Then, use the Advanced Deal Analysis to see what the estimated profit potential and cash-to-close will be on the property.
3. Negotiate a Purchase Price on the Property: Use the Advanced Deal Analysis to determine what your offer price should be. If necessary, use the Advanced Deal Analysis, FHA repairs checklist, and Meeting with Sellers outline to negotiate a better prices.
4. Get the Property Under Contract: Use the proof of funds letters and sample contracts to make an offer on the property and get it under contract.
5. Purchase the Property: After the property is under contract submit a loan application and order a property evaluation to get the final ARV. Next, get a contractor bid to get approved repair costs. Then, get any required inspections scheduled and provide proof of funds for the required cash-to-close (if any) before signing a Letter of Intent (LOI) for your loan. Finally, gather all required documents, such as title insurance, before closing on the loan.
6. Rehab the Property: Have contractor complete repairs. You can submit draw requests to have completed work inspected and funds from your rehab account paid directly to the contractor.
7. Sell the Property: Put the property on the market. Place a discount on the property every few weeks until the property sells. After the property sells, you can request a loan payoff.
Check out our YouTube videos: The House Flipping Process From Beginning To End, What Are the Steps to Rehabbing a House
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