Every project I’ve done has had different requirements and dependencies. Understanding the key phases helps me form a structure on how long it’s going to take so I can effectively manage the timeframe and communicate with investors.

In most cases, a fix and flip renovation is broken into four main phases:

Acquisition Phase (2-8 weeks)

For me this is typically on the shorter end because I’ve spent years doing deals, understanding my market and building connections with agents, property managers and wholesalers who send me inbound deal flow. If you’re newer, expect to put in more work to find deals on the front end. Components I still do on each deal to help you consider are:

-Research neighborhoods, real estate listings, and market trends

Resources I use are the MLS and City data
https://www.city-data.com/

-Identifying an undervalued property
-Estimate renovation costs and projected sale price
-Make a competitive purchase offer and finalize financing

Pre-Construction Phase (4-8 weeks)

I have a core crew that does most of our projects but if you’re newer this takes time to build out in your market. Its outside of the scope of this article but I'll mention some ways I’ve found contractors to pull quotes:

Word of mouth from other investors and relators

Other contractors

https://www.bbb.org/

https://www.thumbtack.com/

Once you have a list:

-Interview contractors and builders for bids and estimates
-Finalize building permits and required paperwork
-Order necessary materials and supplies upfront
-Complete any necessary demolition or pre-construction

Construction Phase (2-6 months)

Depending on project size and how well your team operates this will vary. The general structure I account for is:

-Gut walls/ ceilings, floors, bathrooms and kitchen where necessary
-Complete rough electrical, plumbing, HVAC throughout
-Build out new layout, if applicable, install drywall, paint, flooring
-Finish with cabinets, countertops, fixtures and finishes

Listing Phase (6-12 weeks)

At this point most of the hard work as been done. This is where you get to see the fruits of your labor pay off.

-Photograph property and create attractive listing materials
-Stage home and style interiors for added appeal

I use virtual staging to create renderings for our flips to save time and money on renting furniture. It works for us. Probably not the best if you plan to do a lot of open houses or walkthroughs but that really depends on your end buyer profile.

-Market the home (I leave this us to a relator)
-Review offers and negotiate favorable sale terms

Wrapping it up

Our average flip from contract to closing is roughly 7 months. We have done some in as little as 8 weeks and others that stretch to a year. The entire process especially if you’re newer generally lasts 6-12 months. With a good deal, accurate estimates, skilled contractors, and staying on top of things through active management, you help yourself a better chance at profiting. The key is staying on budget, finishing on schedule, and ultimately marketing it well to sell for top dollar.

With Discipline,

Josh

Cleveland, Ohio

5 Votes