free house flipping business plan pdf

House Flipping Business Plan

• Free Business Plan Download
• Do you need a Formal Business Plan?
• Why write a Business Plan?
• Components of a Business Plan

Executive Summary

• Organizational Structure and Team
• Strategies and Processes
• Company Goals
• Keys to Success

Download Our House Flipping Business Plan Template

Reason # 1 To Map Out the Future of Your Business

Reason # 2 to create a plan of action, reason # 3 to set quantifiable revenue & profit goals, reason # 4 to get funding from business partners & lenders.

• Organizational Structure, Team & Operations Plan
• Business Systems & Processes
• Business Goals & Strateges

Organizational Structure

Business entity & structure.

Talk About Yourself

Talk about your team.

Business Strategies & Processes

Market strategy, targeting your ideal house flip, leads & acquisition strategies.

Deal Due Diligence

Project Management Strategies

Business Goals & Forecasts

3 to 5 year financial plan, project goals.

Revenue Goals

Profit goals, keys to success and meeting your goals, project team/strategic hires, strategic partnerships/relationships, business systems, ready to take action.

How to Write a House Flipping Business Plan

The most important part of starting a new rehab project is having a house flipping business plan.

Before making an offer on a property, you need to define what your goals are for the project and how you’re planning to reach them. House flipping needs to be approached from an objective and quantifiable perspective, not an emotional one. As such, a house flipping project plan is essential to create a clear path to success.

To make the process as easy as possible, we have created a free house flipping business plan that you can download.

We also encourage you to read the rest of this article to help you understand each part of the house flipping business plan.

Click Here Get Your Free House Flipping Business Plan Template

Benefits of writing a house flipping business plan, writing a house flipping project plan is important because:.

• It will turn your vague ideas into concrete thoughts.
• It will help you to resolve lingering issues that you keep pushing off.
• It will help you to fully understand what you are getting into and how to get out of it.
• It will force you to consider the time, money and emotional commitment needed.
• It will force you to address your tolerance for risk.
• It will make you think about your own strengths and weaknesses and identify areas where you may need assistance.
• It will show people who are working with you (lenders, lawyers, contractors, etc.) that you are serious about the project.
• It will improve your chances of getting approved for a loan.
• It will help you plan and organize your house flipping business beyond single house flips
• It will let you know if/when you are going off-track

House Flipping Business Plan Outline

Now that you know why you should create a house flipping business plan, let’s jump into what a business plan actually looks like.

Our free house flipping business plan template includes the following topics:

Executive Summary

Mission statement.

• Market Analysis
• Strategy, Timing, and Financial Projections
• Team Description

Exit Strategies and Backup Plans

What are you doing.

The executive summary is the elevator pitch version of your business plan. It should briefly cover all of the topics covered in the business plan, starting with your mission statement and a brief overview of the project goals.

If someone only has time to read one page of your house flipping business plan, this will be it. They should gain a basic understanding of the whole project, your ideas, and what you bring to the table. It’s often easiest to write this piece last after all of your planning from the other sections are established.

Why are you embarking on this business venture?

The mission statement is a one to three sentence synopsis of your project objectives and the underlying philosophies behind them. This statement says a lot about your central ideals and business culture, and it is very important when laying the foundations for your project.

When writing your mission statement, cut the jargon! Make it clear, concise and useful.

Comparative Market Analysis

What is the economic environment surrounding your project.

Read more about how to prepare your own CMA in our Real Estate Strategy section.

Understanding the neighborhood where you are buying is essential to your success. Only when you have done your own due diligence can you be sure that you are getting a good deal. In the end, your thoughtful planning should be rewarded with moving forward on a successful project.

Sites such as Realtor , Zillow , and Trulia are all free sites that can give you information on the property to be purchased and neighborhood value. These sites can show you the selling prices of nearby homes and the characteristics of the home (bedrooms, bathrooms, square footage, lot size, etc.), allowing comparisons to be made between properties. These sites will also show you what is for sale in the neighborhood, so you will have a sense of the competition in the local market. Another great strategy is attending as many open houses in the neighborhood as possible to get a real sense of size, finishes, configurations, and more.

Below is a list of ways to better understand the market you want to buy in:

• Work with a realtor to help you identify properties
• Join real estate investment groups to get education
• Align with a wholesaler
• Find lists on the Internet
• Review foreclosure sale lists

All of these tools may help you identify your best opportunities, but you must do the work yourself, and not rely on what others tell you.

Once you do your due diligence, be sure you describe your research and rationale within your business plan. Write this section as an organized series of data points that explain the decisions that you are making with the choice of house and rehabbing decisions.

The goal of this section is to show a third party reader where the property and project fit in the current economic and regional real estate markets.

A house flipping business plan will force you to consider any difficulties that may arise, and prepare for them. This is just one of the ways that a house flipping project plan can help you plan, prepare, and get ahead of future roadblocks.

Project timeframe, how long will your project take.

Now that you’ve outlined your executive summary, mission and market analysis, you’ll want to develop a timeframe for your rehab project.

Keep in mind that rehabbing and flipping always takes longer and costs more than you think it will. Make a timeline that is realistic, and then add additional time to it to cover inevitable delays that you can’t initially account for.

Next, “cost out” each month on your timeline being as detailed as possible.

Consider the following questions when costing out your timeline:

• How much will you need to pay on the loan you have for the property?
• How much are insurance and taxes monthly?
• How much will you need to pay your contractor?
• How much are the monthly utility bills going to be?

To read more about developing a project timeline, read Chapter 4 of our Flipping Houses 101 Guide, “ Develop a Property Investment Plan and Timeline .”

Financial Projections

How much will it cost where will the time & money go.

After you determine how long your flipping project will take, you will need to show a budget and financial projection. The financial projection takes into account both time spent flipping the property and money spent across the whole project. This is one of the most important sections of the business plan.

Here are a few costs to include in your budget:

• Cost of the property
• Expected rehab costs
• Other expenses like marketing costs to sell the property
• Additional contingency expenses

Add all of these costs to get a total investment number.

Then, provide a realistic, supportable value for the sale of the property and deduct liquidation costs (such as realtor fees, transfer taxes, etc.) to project your expected profit on the property.

Use our House Flipping Calculator to help calculate a cost breakdown for your project, and then include these details in your business plan. This will not only help you identify potential budget challenges, but also show people you are working with that you’ve strategically thought through your budget!

Pro tip: Make sure that your numbers are realistic, and do not rely on everything going right.

After identifying all of the costs to buy a home, and how long it will take to actually complete the rehab, you should be able to fully estimate your cash flow through the duration of the project. This financial projection will help you understand how much cash is necessary to keep your project moving forward.

Financing Strategy

How do you plan to fund your project.

This section of the business plan should identify all of the sources of your start-up capital for your rehab project. To put it simply: Where will you get the money to flip a house?

There are numerous house flipping funding options, including:

• Conventional Mortgage
• Government Insured Loans
• Owner Financing
• Private Money

Keep in mind that your source of funding will have an impact on your timeline, costs and overall budget.

In the world of real estate investing, an all-cash offer is always preferred over an offer from someone with financing contingencies. Financing your project with your own cash is a good option if you don’t want to be in debt to an institution. However, most house flippers cannot afford to flip a house without financial help. It’s important to do your research about each type of funding listed above to compare the short and long term costs of each option.

To learn more about these six types of funding, check out Chapter 3 of our Flipping Houses 101 Guide, “ Getting Rehab Funding Right .”

If you want to get funding from a lender, watch the video below, where Rehab Financial’s President, Susan Naftulin, offers key tips to help you get approved by a lender.

Once you choose a source of funding, clearly explain which financial assistance you intend to use in your house flipping business plan, if you are going to get pre-approved, and how far in advance you plan to get pre-approved.

About Your Team

How is your organization structured are you building a team or taking on responsibilities yourself.

Now, you need to decide how you want your house flipping business to be organized.

Do you want to borrow in your own name as a sole proprietor? Or, do you want to form a partnership, corporation, limited liability company?

Read more about the best business structures for real estate investors in our Real Estate Strategy section.

You may need to seek the advice of an attorney or accountant to fully understand the implications of each organization type. Be careful about this choice, because your selection can affect your ability to borrow money, mitigate your risk, attract investors, etc.

This section of the business plan is also where you should talk about yourself. Include a brief bio, relevant experience and unique skills that will be advantageous to your company.

If you are working with a house flipping team , include who these people are, and why you chose to work with them. Make sure that the reader understands what you are doing and how the team you are working with will contribute to a successful rehab project.

How are you getting out of the investment? Do you have contingencies in place in case of unforeseen circumstances?

Finally, your house flipping business plan needs to address your exit strategy. Essentially, an exit strategy is what a house flipper plans to do with their property once the rehab is complete.

You also need to address contingencies in case the project doesn’t go as planned.

Below are a few examples of common scenarios where you’ll need to explain your contingency plans.

Scenario 1: Your property doesn’t sell

• What will you do if your property does not sell? Will you use it as a rental?
• If so, you should show that the rental will pay the carrying expenses of the building.

Scenario 2: You’re going to use your property as a rental

• Do you plan to refinance the property and hold it as a rental?
• If so, show your plans for refinancing it, but also show what you will do if you cannot obtain the needed credit.

Scenario 3: You’re going to sell the property

• Will you sell the property?
• If so, state how much you plan to sell it for. In addition, you will also need to know the rules related to your exit strategy.

Scenario 4: You’re going to sell the property to an FHA buyer

• Do you plan to sell to an FHA buyer?
• If so, make sure you understand the anti-flipping regulations to make sure you aren’t trying to sell too soon. Generally, you will need to hold the property for more than 90 days in an FHA situation.

Why a House Flipping Business Plan is Crucial

A thorough, well-written business plan can be an invaluable tool in helping you meet your house flipping goals. Time spent on planning at the beginning of the process will save you immeasurable time, money and worry during the process.

Get Your Free House Flipping Business Plan Template

House Flipping Business Plan [Template + Example in 2024]

Whenever you start or run a business, including a house flipping business, you should develop a business plan. Usually, this kind of plan is used for finding new partners or securing funding. Additionally, it will make it easier for investors to invest. Furthermore, it makes others want to work with you and gives you credibility.

Developing a solid business plan is the key to starting a house-flipping business. Your business plan's quality makes it stand out, so make it great. It might seem daunting, but don't worry. You can prepare a business plan with our House Flipping template and example.

The template and example in this article will ensure your business plan contains everything you need. Furthermore, we'll discuss common concerns and questions about a house-flipping business plan.

Without further ado, let's get into it!

How to Write a House-Flipping Business Plan?

Every House Flipping business plan must have the following sections:

• Executive Summary
• Business Overview
• Products and Services
• Market Analysis
• Marketing Strategy
• Financial Planning
• Operations Plan
• Management Team

Now, let's discuss each section in detail together with examples.

1. Executive Summary

An executive summary should be the first part of your House Flipping business plan. The purpose of this section is to explain what your business provides and what you will discuss in the remainder of the document. As a result, this section should be included after everything else.

A practical executive summary will help you make an excellent first impression. The mission statement and services offered by the company are summarized here. You should also explain why you are starting your own business and your experiences.

Kindle House Flippers is a real estate development company specializing in house flipping. We will have our main office in Long Island, New York. With this house-flipping company, we aim to provide cheap homes and properties to all socioeconomic groups in the country through collaboration with the American government.

With our plan of securing highly marketable properties at an accessible and fair price, we can compete effectively with the top players in the sector. To prioritize our customers, we will turn a healthy revenue and grow into one of the world's largest house-flipping companies.

2. Business Overview

An overview of your house-flipping business can be found in the Business Overview section of a business plan. This section should include your company's structure, values, mission, and products or services.

With this information, you can demonstrate how competitive your business is and will be in the future. Several different names can refer to a business overview. The terms used to describe them are Company Descriptions, Company Summaries, and Company Profiles.

Kindle House Flippers is a real estate development company specializing in house flipping. This house-flipping business aims to provide cheap homes and properties to all socioeconomic classes in the US. The head office will be in a typical Long Island, NY, office building.

Even though our head office will be in New York City, we will have branch offices nationwide. We aim to open offices in North Carolina, Wisconsin, Texas, Arizona, and Seattle within two years of opening.

We will form a self-managed and self-administered real estate investment trust called Kindle House Flippers. We plan to rank among the biggest house-flipping companies in the country by establishing a strong presence in key cities.

3. Products and Services

The Product and Service Section is where you'll list all the products and services you offer (or both). As part of your presentation, you will also discuss how these products or services can be manufactured, sold, or delivered. Therefore, you'll want to assess the suppliers of your product, the costs of the product, and the market position of your product.

Kindle House Flippers plan to operate within the parameters of the American real estate market as a typical and successful house-flipping enterprise. The purpose of starting a house flipping company is to take advantage of the market, and we will take any measures allowed by US law to do so. The following is a list of our business offerings:

• Flipping houses / exchanging properties
• Guiding buyers through the purchase process
• Managing of properties
• Auctioning Properties
• Preparing Leases and Contracts
• Placing properties on the public sale list
• Preparing and providing all necessary forms and disclosures to the seller
• Organizing an open house to showcase the property
• Prescreening buyers and ensuring they are financially qualified
• Offering fully furnished properties for sale
• Land selling for development
• Advising and consulting related to real estate

4. Market Analysis

A House Flipping Business Plan includes a section called Market Analysis, which explains your target market for the business. If you want to know who your competitors are and who your potential customers are, then use this section of your business plan.

The following information should be included in this section:

• Competitive Analysis: Determine the potential competitors in your market
• Customer Analysis: Discover and measure the audience you want to reach
• Industry Analysis: Assess the general environment of the industry

Reaching people from all backgrounds is critical to us. Through our business approach, we can serve rich people and people just looking for a roof over their heads.

Our target market is the whole country, so we want independent agents (brokers) to represent us there. The leadership and board of Kindle Home Flippers are experienced in the US real estate market.

They are investors and experts in their fields. All of those things will give us a competitive edge.

5. Marketing Strategy

Your marketing strategy is the section of your business plan that tells you how you plan to reach your target audience. Companies use marketing strategies to convey their customers' key messages and value propositions. If you want to know how to reach your target market, what motivates them, and how you can make them want to buy your products, then you can state those in this section.

Our sales and marketing staff will be chosen based on their industry expertise, and they'll get frequent training to ensure they're ready for their goals.

It's for all of our independent brokers, who are more than just full-timers dispersed around the country.

Since one of our goals is to rank among the country's top 15 home flipping companies, we have methods to help us take advantage of the market.

Marketing and sales strategies for Kindle House Flippers include:

• Introduce our company to stakeholders in the real estate industry, property owners, and potential clients throughout the country with introductory letters accompanied by our brochures.
• Bidding on homes/properties that are posted for sale as soon as possible
• Publicize our business in real estate and property magazines and websites.
• Make our business available in local directories like the yellow pages.
• Make attendance at real estate trade shows, seminars, business fairs, etc.
• Develop different packages for different client categories to sell our homes/properties successfully
• Promote our business through our official website and social media platforms on the internet.
• Display a visible "For Sale" sign whenever we list a property for sale.
• Promote our properties through word of mouth, especially when they are for sale.

6. Financial Planning

Financial planning is the section of your business plan that tells you your business's goals and how you will achieve them. The purpose of a financial plan is to assist organizations and individuals in becoming financially prosperous at the end of the day.

Starting a house-flipping business takes a lot of money. As a result, entrepreneurs need to pool their money or find investors.

Putting up an office building for this kind of company may require little capital, but managing it usually does.

Buying homes or other properties, remodeling them, and then putting them on sale would require a lot of cash.

7. Operations Plan

The mission of your Operations Plan is to outline the plan for implementing the actionable steps that your team will take to reach your strategic goals to execute your operations plan. This section lists the responsibilities each department employee has daily, weekly, and monthly.

A company's devoted customers, workforce, investments, and organizational structure determine its success. If all these components are missing, a company will close quickly.

Kindle House Flippers want to build a company that can function without outside funding once it's up and running.

For now, we're willing to endure a smaller profit margin since we know that selling our houses for a little less than what's available on the market is one way to win clients' approval.

8. Management Team

Your business plan should include a section for your organization's Management Team, giving a detailed overview of the whole staff and everyone involved in the operation of your organization. Your House Flipping business's success depends significantly on your management team's effectiveness. Moreover, if you wish to demonstrate your company's growth potential, you will need to highlight the skills and experience of the key players in your organization.

Your team members and you must have direct experience with the industry you plan to target. Therefore, it is essential to emphasize to the interviewer the candidate's expertise and experience to gain their attention. Including any experience that will benefit your business is essential in this section.

Mrs. Karissa Strickland will own most of Kindle House Flippers. Before starting her own company, Karissa Strickland worked for renowned US real estate firms. However, the company will include other investors with the same investing philosophy when it comes to pooling money for real estate purchases and renovations.

Below is the management team of Kindle House Flippers ;

• Karissa Strickland - Chief Executive Officer
• Chaz Barker - Project Manager
• Landyn Santos - Company's Lawyer / Secretary
• Alyson Blair - Admin and HR Manager
• Mckayla Harrell - Head of Construction
• Yosef Sparks - Head of Assets Management
• Rylee Avila - Head of Acquisition and Disposition
• Kathleen Curtis - Business Developer / Sales and Marketing
• Trent Giles - Accountant
• Ernesto Buckley - Front Desk Officer

House Flipping Business Plan PDF

Do you want to download a House Flipping business plan example in PDF?

Here is the download link.

Let us know if you have any questions!

House Flipping Business Plan FAQs

Below are some of the frequently asked questions you may have about House Flipping Business Plans:

What Is a House Flipping Business Plan?

Business plans come in various formats, and the House Flipping Business Plan is no exception to that rule. Business plans are essential documents that can help you attract investors, obtain funding, cooperate with other businesses, and provide detailed information about your business.

As you can see, the House Flipping business plan provides detailed information about the company, its operations, and its structure. In addition, this report contains the details you need to know about the operations' finances, marketing, and management throughout the entire report.

As much as possible, businesses should consider various factors before launching their businesses, such as the cost of starting up, market research, mission statements, and succession planning, among others. These things are stated clearly in a good business plan.

Why Is a House Flipping Business Plan Important?

When starting up a house-flipping business, it is imperative to have a business plan in place. This document outlines the goals of the company as well as the structure of the company in the form of a business plan. Furthermore, you can follow or change the project flow as needed since you will have a basic outline.

If you hire and train employees, seek investors, or adjust your pricing strategy, it would be helpful if you had a House Flipping business plan. As a result, you should make one regardless of whether your business has already been launched or if you are still in the process of launching it.

Is Owning a House Flipping Profitable?

Due to the constant demand for house flipping services, a business can always be profitable. Therefore, consider it if you plan to launch your own business shortly.

In any case, whether you provide your customer service or hire an outside service provider, you must provide a superior service level. Your house-flipping business's profitability will be significantly affected by how it is managed. As such, you should prioritize customer service above small things.

You must develop a business plan before you open or operate a house-flipping business. With the aid of a plan, you will be able to identify your strengths, your competitors, your goals, as well as your workflow. Additionally, if you are seeking funding, a solid business plan can help you secure grants or investors if you need some funding.

With the help of this template, you can create a House Flipping Business Plan in which all the necessary information and elements will be included. Then, following our examples, you can develop your business plan based on the ones we gave you.

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