The Six-Step Flip

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Real Estate Investors Donte and Jokeeta Marzett walk us through their process for successful house flipping. Their latest house, in Fort Worth, TX, netted them $70K profit. If you want to replicate their winning strategy, dive in to familiarize yourself with their six-step flip!

Step 1: Sourcing

There are multiple ways to find property leads. Wholesalers, who act as intermediaries between sellers and buyers, are one of the most popular starting points. But don’t limit yourself: Networking and building relationships can uncover hidden opportunities. And research the local market: Knowing the desirable school districts and nearby features, can also guide your sourcing efforts.

Step 2: Walkthrough

A prompt property walkthrough is essential to understand an opportunity, identify potential problems, and inform your budget. Focus on the “Big Five” during your visit:

Foundation: Look for cracks, particularly those traveling up structural posts.

Roof: Assess the condition of the shingles and identify any potential leaks.

HVAC system: Inspect the furnace and outdoor unit, and remember the ductwork is mostly hidden.

Electrical system: May require specialist inspections to ensure safety/ functionality.

Plumbing: May require specialist inspections to ensure safety/ functionality.

Step 3: Scope of Work

Plan for success! Before committing to buy, create a detailed scope of work. This outlines necessary renovations, estimated costs, timeline, and exit strategy. In some cases, the work might be purely cosmetic, like replacing flooring, painting cabinets, or installing new countertops. Other times, you’ll be going down to the studs. The scope of work should also consider permitting requirements and funding plan.

Step 4: Funding

Financing plays a vital role in any property flip. Where is your capital coming from? Hard money lenders like Backflip can be a good option, offering loan options specifically tailored to real estate flips. Research different loan products and choose one that aligns with your project’s needs.

Step 5: Renovation

The renovation phase is where the magic happens—going from eyesore to showstopper. Managing this stage effectively requires a well-defined vision and clear communication with contractors. To maintain a realistic timeline, consider your lead time on materials, build in buffer for delays, and avoid going out of scope. As well as the core renovation, factor in a week or two to finalize the design features of the home.

Step 6: Stage & List

It’s time to go to market. Finding the right realtor (or being a realtor!) can save you time, and increase your profit. Staging showcases a property’s potential to prospective buyers. Strategic furniture placement and lighting can significantly enhance the space’s appeal. The faster you close, the sooner you can move on to the next one.

By following these six steps and conducting thorough research, you can increase your chances of success in the lucrative world of property flipping. Remember, smart sourcing, a keen eye for detail, and a well-executed plan are the cornerstones of a profitable flip. Come back for another member video insight soon!

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