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Updated 18 days ago on . Most recent reply

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Kiryl Ulanovich
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Step by step process for fix and flipping

Kiryl Ulanovich
Posted

What is the order of events that I have to do as a flipper with the participation of wholesaler and hard money lender? And is what I wrote down below right or not?

  1. 1. Get Pre-Approval from Hard Money Lender.
  2. 2. Find a deal through wholesaler (in this case)
  3. 3. Perform a home inspection
  4. 4. Sign an Assignment of Contract:

      Check the terms of the contract.

      Make an Earnest Money Deposit.

  1. 5. Get final approval from Hard Money Lender.
  2. 6. Do a title search with title company
  3. 7. Close the deal through title company.

Is that right?

Most Popular Reply

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Obed Calixte
  • Real Estate Agent
  • St Petersburg, FL
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Obed Calixte
  • Real Estate Agent
  • St Petersburg, FL
Replied

Adding to Trevor's step 5 -  create a detailed SOW. 

This is where having contractors setup early will help you tons. 

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Trevor Finn
  • Real Estate Consultant
  • Columbia, MD
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Trevor Finn
  • Real Estate Consultant
  • Columbia, MD
Replied

@Kiryl Ulanovich,

You're on the right track:

  1. Get Pre-Approval from Hard Money Lender – Know your terms and limits upfront.
  2. Find a Deal Through a Wholesaler – Verify numbers and ensure it meets your criteria.
  3. Review the Assignment of Contract – Confirm terms, earnest money, and contingencies.
  4. Conduct Due Diligence – This includes an inspection (if allowed), verifying ARV, and rehab estimates.
  5. Submit to Hard Money Lender for Final Approval – Lender will review title, contract, and property condition.
  6. Title Search & Clear Any Issues – Ensure a clean title before closing.
  7. Close Through Title Company – Finalize funding and take ownership.

Consider also lining up contractors early for a smooth transition into renovations.

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Prashant P.
  • Real Estate Investor
  • Philadelphia, PA
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Prashant P.
  • Real Estate Investor
  • Philadelphia, PA
Replied

I would say you need to find the contractors first.  At least ones that will walk the property with you and give you an fair estimate.  Once you have the place under contract you are time limited. So you might not be able to get the best estimate.  This will cost you money on the back end.

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Obed Calixte
  • Real Estate Agent
  • St Petersburg, FL
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Obed Calixte
  • Real Estate Agent
  • St Petersburg, FL
Replied

Adding to Trevor's step 5 -  create a detailed SOW. 

This is where having contractors setup early will help you tons. 

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Mills Thumser
  • Lender
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Mills Thumser
  • Lender
Replied

Hey Kiryl! I'd be happy to connect to discuss the Hard Money Lender side of things. Feel free to reach out or send me a connect!

  • Mills Thumser
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    Kyle Deutschmann
    • Lender
    • Baltimore, MD
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    Kyle Deutschmann
    • Lender
    • Baltimore, MD
    Replied
    Quote from @Kiryl Ulanovich:

    What is the order of events that I have to do as a flipper with the participation of wholesaler and hard money lender? And is what I wrote down below right or not?

    1. 1. Get Pre-Approval from Hard Money Lender.
    2. 2. Find a deal through wholesaler (in this case)
    3. 3. Perform a home inspection
    4. 4. Sign an Assignment of Contract:

          Check the terms of the contract.

          Make an Earnest Money Deposit.

    1. 5. Get final approval from Hard Money Lender.
    2. 6. Do a title search with title company
    3. 7. Close the deal through title company.

    Is that right?


     You're definitely on the right track! I always recommend speaking with a lender or two before you start deal hunting. That way you have them in your back pocket when you find the right one, and generally lenders can move a little faster to close the deal once you're already pre-approved and in their system. 

    The title search would likely happen simultaneously to your own due diligence and the lender's due diligence so it wouldn't really be separate steps. As others have mentioned, having a good ballpark estimate of rehab costs before closing is also smart, and likely required if using a hard money lender. 

  • Kyle Deutschmann
  • Kyled@thedominiongroup.com