One of the biggest mistakes many wouldbe house flippers make is operating without a business plan , according to a recent article published by millionacres . com ( a Motley Fool service ).
Information about the structure of your organization . For example , are you a corporation , LLC , or sole proprietor ? Are there other people involved in your company ? How and why was your company founded ? A strong mission statement , which discusses the principles under which your business operates , is also important .
However , this blueprint should not focus on a specific rehab property ; it needs to be a document that discusses the vision for the overall flipping business , according to the article .
Any solid business plan needs the following basic information :
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• Specific goals for the company , with a realistic time frame set for each goal
• Details about the actions necessary to achieve those goals with the desired time frame
• An executive summary , which includes details about your experience and education ( this is especially crucial for any wouldbe investors )
A complete business plan has multiple categories and is not a static document . It is a document that will change and evolve as your flipping business grows .
Other aspects of a solid business plan for house flipping include :
A complete business plan has multiple categories and is not a static document . It is a document that will change and evolve as your flipping business grows .
A market analysis . Basically , you need to identify and analyze the neighborhoods and communities of focus . Why are these neighborhoods good ? Discuss schools , crime rates , and other information important to homebuyers . Are you focusing on specific types of properties , such as singlefamily homes or condos ? What are your price points ? Who is your ideal buyer ?
Financial details . Discuss , in detail , how your first few home purchases and rehabs will be financed . Also , what are your financial projections for the future of your company ? Basic documents needed include an income statement , cash flow statement , and balance sheet .
Growth , leads , and acquisitions strategies . How do you plan to grow your house-flipping business ? How will you find the properties you want to flip ? And how will you find homebuyers ?
When creating a business plan , it ’ s important to stay realistic and back up any claims with thirdparty data , according to
millionacres . com . Also , the business plan does not need to be a long document . While it should be thorough , most people nowadays don ’ t have the time or patience to read long , meandering documents .
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