How to Start a House Flipping Business in 2021

A house flipping business, just like any new business, is never identical.

Nor does it have the same strategy.

It’s essential to look at the current state of the real estate market before you get started.

2020 was a year of massive changes.

The COVID-19 pandemic changed everything reshaping our world.

The way we work and live in the post-pandemic future will change real estate activities. In a way, it ultimately affects how we run a house-flipping business.

Let’s start with the three things house flippers need to learn in 2021. These are important to know before picking up on the first flip of the year.

Many of us know that properties and real estate are the go-to investment to establish long-term intergenerational wealth.

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An approximate estimate of 21.6 million LLCs has been set up in the US.

As there is no way to know the number of the LLCs formed and dissolved, any estimate is likely to overestimate the number that exists.

As more people tune in to HGTV and YouTube, enterprising investors are influenced in setting up a house-flipping business.

One of the toughest new business models for short-term investment is by flipping a house.

If you can identify this business as an exciting opportunity for you, let’s agree to find out how.

As in every industry, you require financing, resources, and research before you can start a house-flipping business.

What is a house-flipping business?

House flipping is the process of purchasing a distressed or foreclosed property at a low price. Business owners have the intent to renovate or fix it up.

And then sell at a higher price within a short time.

We sum it up in 3 steps:

  • Buy
  • Fix
  • Flip

Before you can buy, you will need to get your finances in order.

How to Start a House Flipping Business

How do you turn a distressed property into a home that you can Flip for profit?

How to start a house flipping business?

You need to learn more about the house flipping business before you fix up that first property,

If you’re an enterprising investor, get this guide to help you develop

  • a business strategy
  • determine and execute
  • for optimal financial profit

You Can Start a House Flipping Business in 8 Steps

The business strategy works on a project-by-project basis.

If investing in short-term real estate is what you want, flipping a home would be ideal for you.

Here’s where to start:

Step 1: Write a Business Plan

Step 2: Set Up Your Business

Step 3: Obtain insurance, permits, and licenses.

Step 4: Grow your network.

Step 5: Connect With Contractors & Other Professionals

Step 6: Form a team.

Step 7: Understand The Importance Of Market Research

Step 8: Buy, Renovate, & Sell Your First Property

Step 1: Write a Business Plan

For real estate investors, before you start a house-flipping business, the first and most crucial step is to write a business plan.

A business plan is key to keeping your business on track.

It helps you estimate expenses, and most importantly, make and maintain profits.

Your business plan should be reasonably in-depth.

Other information includes data from the real estate market – research, acquisition, renovation, and flipping the property.

Before taking any action, make sure you add a section for all business components from hiring contractors, buying materials, etc.

You can either write it on as you go along during your research.

Or use a business plan template to help you.

Remember that the critical part of a business plan is your profit margins, no matter which method you adopt.

You start with an executive summary.

Here you will describe the purpose of your business.

Your vision and mission.

It can combine some high-level financial projections and return on investment.

You should also identify the people who will be involved in the business.

The rest of the business plan should include a section on demand for your business – is it viable?

As business owners, you need to list down your competitors, if any.

Knowing if there’s demand will sustain your house-flipping business.

Going into a business with no research is similar to being clueless.

One reason 42% of all small firms fail is they cannot plan.

“If you fail to plan, you are planning to fail.” – Benjamin Franklin.

Benjamin Franklin’s quote applies not only to choices we make BUT our financial planning to growing wealth and entrepreneurship.

If we don’t take his message to heart, we may face costly mistakes because of a lack of foresight.

Your business plan will lay out your business process.

How much it costs to operate.

What you expect to make in profits.

With house flipping, you’ll want to detail how much Cash you have upfront.

As a House Flipper, you need to know how much to pay for a property.

  • Purchase Price
  • Closing Costs
  • Rehab Costs (fix and flip)

And finally, the nice profit (ROI) you expect to make back on your investment model.

Tips: When you have a house flipping business, the properties you buy and sell are not personal assets. They are your inventory.

How to Start a House Flipping Business

Your business plan will lay out your business process.

Step 2: Set Up Your Business

Once you’ve written down and completed your business plan, it’s time to set up your house flipping business.

At the absolute minimum, you start by

  • choosing your legal structure
  • registering your business name
  • setting up a business bank account, and
  • applying for any required licenses or permits.

Taking these steps allows you to operate your business legally and securely.

Your business structure gives you credibility with banks, moneylenders, and investors.

It also determines how you are taxed.

You can base it on a Business Plan Template as a guide or change one to suit.

As a quick summary, the type of business structure or a legal structure can take the form.

  • Sole Proprietorship
  • Partnerships
  • Corporations
  • Limited Liability Company (LLC)

Sole Proprietorship

A sole proprietorship is the easiest and cheapest to set up, and it does not require registration.

The IRS taxes Sole Proprietors at the personal tax rate.

Business earnings or losses are filed on individual tax returns.

A sole proprietorship structure does not offer liability protection.

Partnerships

A partnership is a structure for a business with two or multiple owners.

They taxed partners at the personal tax rate and file earnings or losses on individual tax returns.

Limited partners have liability protections, and general partners do not have any protection.

Corporations

A corporation is the most expensive business entity to form.

It has the most requirements requiring a board of directors and having annual meetings.

We filed taxes using the corporate tax rate.

Corporations can raise money through the sale of stock.

There are liability protections in place for owners.

Limited Liability Company (LLC)

An LLC offers features of several legal structures.

There are no requirements.

Business owners can choose how they are taxed. There are liability protections under an LLC.

Choose the Right Business Entity for Your House Flipping Business

We start a business to make a difference and aim to keep the business activities running smoothly.

As a small business, you can’t afford to be sued.

Above all, you must do everything within your means to limit risks.

Liability protection is vital for a house-flipping business as many unforeseen circumstances can go wrong.

We recommend you set up a limited liability company (LLC).

An LLC is a business structure in the United States where the owners are not personally liable for the company’s debts or liabilities.

Limited liability companies are hybrid entities.

They combine the characteristics of a corporation with those of a partnership or sole proprietorship.

You will want your assets protected at all costs.

In case someone sues over an issue with a property you flipped, you are protected.

If you’re unsure which entity is right for your business, it is best to consult a business attorney to weigh your options.

Alternatively, you can check with our consultants on how to form your house-flipping business legally.

Aside from choosing the type of business structure, knowing which state to register your business entity is equally important.

You are assured to file for corporate taxes instead of a personal tax return.

Tips: With so many corporate structures to choose from, opt for one with limited liability protection.

Choose an LLC or a C corporation.

The first step is to choose your legal business structure now that we have gone through some common types.

What are the Steps to Registering Your House Flipping Business?

  1. Determine the proper business structure for yourself.
  2. Decide where you should form your LLC.
  3. Find a local registered agent.
  4. If applicable, register your LLC or S-corporation.
  5. Apply for an EIN.
  6. Get a US mailing address.
  7. Open a US bank account.

Determine the proper business structure for yourself.

Once you’ve determined your legal structure, start registering your business name in the state you’ll operate.

Decide where you should set up your LLC.

Noble Sky recommends setting up an LLC in Wyoming.

The main benefits of setting up an LLC in Wyoming are:

  1. No state income tax on limited liability companies.
  2. LLC assets are safe from personal liabilities.
  3. Charging order protection extended to single-member LLCs.
  4. They do not list members nor managers with the state.

How to Form an LLC in Wyoming?

  1. Choose a Name for Your LLC.
  2. Appoint a Registered Agent.
  3. File Articles of Organization.
  4. Prepare an Operating Agreement.
  5. Comply With Tax and Regulatory Requirements.
  6. Annual Report.

Find a local registered agent.

You can find an agent online or leverage Noble Sky’s SkyInvest Concierge for help to register your business.

Noble Sky assists investors worldwide in setting up their business entity in the United States.

If applicable, register your LLC or S-corporation.

Depending on the type of legal structure you select, additional paperwork and fees may be required.

Next, you’ll need to determine the type of licenses you need to operate your house flipping business.

It depends on the state that you choose to operate your business.

There are a few more steps to take if you want to start work as a house flipper.

Apply for an EIN.

First things first – you need to register for an employer identification number (EIN).

The EIN is like a social’s security number for your business.

You will use this for tax purposes and apply for a business bank account, credit card, or business loan.

You can apply for an EIN can be done online through the IRS website.

Get a US mailing address.

To open and maintain US bank accounts, financial institutions require a US mailing address.

There is no way around it.

If you want to keep a US bank account and credit card, you must keep a US mailing address.

Noble Sky has assisted our investors in getting a US mailing address for this purpose.

Open a US bank account.

Finally, set up your business bank account – a necessity for keeping your business and personal finances separate.

If you’re applying for a business loan, this account is where you deposit all your funds.

Key Takeaway: By forming a legal entity, you limit your liability and protect your assets as a Business Owner.

How to Start a House Flipping Business

Determine the proper business structure for yourself.

Step 3: Get insurance, permits, and licenses

Next, your business insurance.

Before you can hire employees, you’ll need workers’ compensation, unemployment, and disability insurance.

You need to look into general liability and commercial property insurance to protect yourself, your business, and your properties.

Finally, to operate your house flipping business, you’ll need proper business licenses and necessary permits.

The licenses and permits depending on the state you are operating in and the work you’re doing.

To carry out work in the construction business, you will need several types of permits.

A good starting point is to contact the local government or county in the city you want to operate.

Please check to ensure you have all the paperwork you need before starting any work.

Get Business Insurance 

You will require a general business license and business insurance.

Other Insurances

As a house flipper, each new property has its requirements in terms of permits and insurances.

Your best bet is to establish a good relationship with an insurance agency early in the game.

Real Estate Licenses

Real estate licenses are authorizations issued by state governments to give agents and brokers the legal ability to represent a home seller or buyer buying or selling real estate.

The US requires all Real estate agents and real estate brokers to be licensed when conducting real estate transactions in the United States.

While it isn’t a requirement for a house-flipping business owner, it can certainly help if you decide to get your real estate license.

Finally, you’ll need to set up your business bank account – a necessity for keeping your business and personal finances separate.

If you’re applying for a business loan, this account is where you deposit all your funds.

How to Start a House Flipping Business

As a house flipper, each new property has its requirements in terms of permits and insurances.

Step 4: Grow your network.

Flipping houses is not as easy as it looks on TV.

It is challenging work.

You will need plenty of resources to help you start and finish each job.

A house flipping business is not something you can work part-time or as a side hustle.

Besides having experience in the real estate business, you will access a network of contractors and tradespeople – and it depends on your relationships with people.

You can buy your property as an asset, but you will need an entire network of “crew” to get the project off the ground to completion.

While you build your resources and network, learn to take advantage of your strengths.

Networking Events

First, start your professional networking with family, relatives, friends, neighbors, or even colleagues involved in real estate investment.

Don’t be shy to ask for leads and deals in the area you plan to invest in property.

There are online communities of real estate investors on social media that you can regularly reach out to and connect with.

Friendly word-of-mouth advice can help you find reputable realtors, wholesalers, contractors, and suppliers to complete jobs within budget.

You can reach out to your existing professional, personal and social networks.

Sometimes in conversations, it is easy to find contacts.

Someone will know someone who knows someone who has a specific skill.

You can bring along your business cards when you attend industry events for professional connections.

Seek experts who can help with an opinion or two for mentoring and advice.

Get active and join local real estate investment groups on social media with industry professionals.

While it is not possible to have an in-person meeting, you can take things online and chat on Zoom, WhatsApp Video, Facetime, Skype – there are many mobile apps out there to help you stay connected.

You can also connect for a video chat with one of Noble Sky International Consultants for a FREE no-obligation 1-hour consult.

How to Start a House Flipping Business

Growing your network or leverage on Noble Sky International’s expertise in the USA – the choice is yours to make.

Step 5: Connect With Contractors & Other Professionals

Once your business is established, aside from making friends with your banker, you will want to build a robust support network.

It’s time to establish relationships with a reputable contractor with a ready crew, suppliers, and other professionals that will help your new house flipping business.

Even if you plan to get hands-on with the renovation and plan to contribute sweat equity to your house-flipping business – you’ll still need a team of contractors to help with the work!

Unlike what you’ve seen on Flippers TV, you are working with actual distressed properties to transform a drab interior into some magazine cover glitz magically.

Most TV shows gloss over and make everything easy with a glamourous transformation.

The truth is, you will need additional sub-contractors to complete a project successfully.

Things you can’t do yourself include significant works like

  • Correct a faulty foundation
  • Connect a sewer line
  • Rewire the entire house
  • Change the roof, ceiling, and rainwater goods
  • Tear down walls and rebuild
  • Remove and redo floor tiles, carpet, and wallpaper
  • Remodel bathrooms
  • Install a new swimming pool

You know – the heavy-duty stuff that involves more than one man and heavy machinery in real-time.

Get a Reputable Contractor on Your Team

When short-listing for contractors, don’t be afraid to ask for references or a portfolio.

Shop around to find a reputable contractor in the construction business for the long haul – someone who knows how to work with your budget.

Since you’re new to the house flipping business industry, you can score savings by developing a good working relationship with reputable construction professionals.

Your contractor will advise you to work on what is necessary to repair instead of replacing every item with a new one.

You can get your contractor to write up a bid or give you an estimate or quotation for the cost of works.

It is essential to add in the working hours required for the job as you will need to coordinate all the trades yourself and become the general or main contractor.

Remember to recommend general contractors with a portfolio of completed houses, references, and positive feedback from previous projects.

A good contractor can coordinate any remodeling plans and provide estimates with budget projections.

Unless you work with a general contractor directly, you may need to deal with other trades on your own time.

These will include

  • Electrical Contractors
  • Plumbing Contractor
  • Restoration Contractor

Do Contractors Flip Houses?

Flipping a house is a team effort.

The crucial part of most house flipping teams are general contractors or trained home remodeling professionals who conduct and oversee residential rehabilitations and renovations.

Find Contractors for your house flipping business.

How to find a good contractor?

Good contacts for a great contractor are real estate agents, property managers, or other builders.

Anyone who owns a home would have used contractors before and could recommend one.

Work with a Trusted General Contractor

At Noble Sky, we work with a trusted, experienced expert contractor who can work within budget down to the last dollar and promptly.

When we sub-contract the projects to our expert in the field, we tap into his knowledge, pool of reliable workers, and a network of reputable suppliers.

Not only will a reputable contractor complete the work required to flip a house for profit, but he will know about local county requirements licenses, permits and have a trusted network.

We make good profits because of an accurate estimate of the rehab required to keep everything within budget.

Getting the numbers right is incredibly important if you plan to run your business right.

We discuss our timelines and budgets with our contractors, so we don’t have workers or supplies disruption, unnecessary expenses, or extended timelines cutting our profits.

Tap into your network and do your research to find some reputable options.

The right contractor can and will make a massive difference in your project.

How to Start a House Flipping Business

Not every rehab requires major works. An experienced contractor will help with an accurate estimate.

How to Start a House Flipping Business

An experienced contractor will give you an accurate estimate for repairs.

How to Start a House Flipping Business

Some rooms require a new coat of paint to brighten them without any major works.

Work with a Real Estate Agent

Before you opt to get your real estate license, having a professional real estate agent on your team is a boon.

Your real estate agent or realtor has access to the necessary resources that will be essential for your house flipping business.

They have a good network of prospective homeowners that could be interested in purchasing your flipped properties.

Aside from access to properties on the multiple listing service (MLS), a good realtor can help market and sell your renovated properties.

Work with a Real Estate Attorney

A Real Estate Attorney is a lawyer that specializes in real estate.

They can help with some legalities of flipping houses, so you don’t overlook critical things during your first flip.

Have a Real Estate Attorney manage crucial legal details, errors in contracts, and other issues is essential to protect the good reputation of your house flipping business in the industry.

Work with an Accountant and Other Investors

Over time, you will meet other professionals you’d like to have on your team.

Your Accountant to file your taxes and other potential investors to collaborate with.

For now, just as you’re starting, focus on finding the right contractors, attorneys, and realtors for your house flipping team.

We hope you found these tips helpful and will put them to use!

Step 6: Assemble a team.

A house flipping business is not something you spend an hour a week monitoring.

So it would be best if you had a team.

Noble Sky does this business full time, 24/7/365.

We have a team in Asia and a US Team to run this business around the clock for our investors.

So, if you’re thinking of starting, whether you can choose to bring in a partner or attempt this business as the sole proprietor, you will need a qualified team to complete a successful flip.

Business Partners or Investors

While some prefer to be a single owner in their house flipping business, others may want to join other active investors in a project.

Instead of using money lenders to gain financing for a bigger project, active investors join forces together.

From a few thousand dollars to a few hundreds of thousands, we have more capital to work with, which means getting better deals rather than buying distressed properties.

You can find a private investor in your network, or you can hire a project manager.

Just as a good business partner is an asset to the business, a great work ethic may be more critical than injecting capital.

If you are determined to make an excellent honest profit, partnering with others to get more leverage in bigger investment deals can be an option, you could consider.

There are a few ways to look at this to evaluate a deal.

Do you want others to bring local knowledge or connections with contractors?

Or, are you looking at getting a slice of more extensive projects?

Are you earning 30% of a $100K investment and 30% of a $500K? The bigger investment deal may be more attractive.

While you evaluate the advantage of a business partner’s ability to get a bigger deal, you might want to consider partnering up with someone who can do in-depth research and knows the Flip property’s profit potential profits.

Realtors or Property Owners

a big plus in the house-flipping business is having a background in real estate and property ownership.

With a knowledgeable partner, you not only leverage his experience to identify the most valuable improvements to the property – once the rehabilitation is complete, you get help to navigate contracts and sales.

Stage the home for prospective viewers? Contacts with banks and lenders?

An experienced partner can steer you every step of the way.

Another thing to note is owner or seller financing – sometimes you find a homeowner who wants to sell and is willing to loan you the money for necessary repairs and renovations!

Legal counsel 

Always seek legal advice about any financial agreement or contractual obligation, especially when you’re considering making significant investments and buying property.

How to Start a House Flipping Business

Having trusting teams is important to your success as a business owner.

Step 7: Understand The Importance Of Market Research

Know the target market size and market trends are vital to maximizing profits for your house flipping business.

Effective market research is crucial in finding the right investment property in a good school district in a US city BUT a customer base.

Your demographic questions should be based on house buyers or consumer behavior based on accurate analysis of data.

A good school district has good retention for growing families, a safe, healthy environment – a favorable climate to attract the best and brightest to want to live here.

The best US cities to buy a house are based on home values, property taxes, homeownership rates, housing costs, and real estate trends, among other factors.

Your ideal customer will want to stay in such an environment.

Buy the wrong property in the poor neighborhood could cause a low gain worth investing in to fix and flip the property.

At the significantly worse, you will be looking at a loss instead of profits.

Work with a Realtor

For business owners, local realtors have the inside scoop on where the hottest neighborhoods are located – along with migration trends.

They have the latest information on recently sold properties and other data that help find suitable homes for flipping.

While you can Google to find the information and do your research for free, working with a realtor can help you know niche market sectors.

Types of Market Research

With market research, you want to know what buyers are looking for, where they want to buy and how much they’re willing to pay.

A big part of your house flipping business plan involves marketing strategies and actionable insights based on the current market conditions.

While you may find some variables in the US, hot markets are almost always neighborhoods at least 20 years old with excellent schools, low crime rates, and homes close to amenities.

Once you understand the market trends, you can narrow down the counties you wish to target, the suburbs where potential customers or homebuyers want to live.

How to Start a House Flipping Business

“If you fail to plan, you are planning to fail” – Benjamin Franklin

In Noble Sky, we are very serious about conducting research, analyzing properties, and getting our estimates down to the last dollar – way ahead of acquiring the property.

Our approach is prudent.

We have long-established a track record of erring on the side of caution when bidding for a property.

We do our due diligence with estimates, either minimally with a drive-by or an on-site viewing of the property before making the estimates required for repairs.

Prudence in accounting and financial reporting is a long-established track record for Noble Sky to make the necessary judgment calls to make the estimates required.

In fact, for your interest, we are giving away a FREE PDF download US Real Estate Investment Analysis below.

How to Start a House Flipping Business

Go Ahead and download this FREE resource!

The exciting part is preparing for the next step: buying and flipping a property!

Step 8: Buy, Renovate, & Sell Your First Property

Now that you’ve set up your business and connected with a team of reputable professionals, and know the current market selling prices – it is time to zero in on the properties on your radar.

Once the price is right, you can pick up your property.

Where to Find Distressed Property?

You can find such properties online on sites like

While some websites cover just foreclosures, others list foreclosures, REOs, and even government-owned properties.

If you want to look at a distressed commercial property, LoopNet is another good option.

You can do your comparative market analysis based on selling price, curb appeal, and market conditions.

One of the essential parts of the selling process is the closing costs.

What are Closing Costs?

Closing costs are the expenses on top of the property price that buyers and sellers incur to finalize a real estate transaction.

How much are closing costs generally?

Closing costs typically range from 3 to 6% of the home’s purchase price. If you buy a $200,000 house, your closing costs could range from $6,000 to $12,000.

Closing fees vary depending on the state you are in, loan type, and mortgage lender, so it’s essential to pay close attention to these fees.

Is there any way not to pay any Closing Costs?

Pay Cash for a home eliminates the interest on the loan and any closing costs.

There are no mortgage origination fees, appraisal fees, or other fees charged by lenders to assess buyers.

For prospective buyers, you save time and money buying homes for sale with Cash.

Even if your completed building is on the market for months, you will not incur more with a monthly payment for a loan – since you bought the investment property with Cash.

How Your Team Can Help?

For Noble Sky, our US Team comes in handy and provides us with the “boots on the ground” knowledge – this gives us an early edge over other flippers and buyers.

While you may check county records or Google Maps for the property’s location and see the photos online, you need to know that these are not recent property photos.

Our US Team takes a drive there to ascertain that the building is still standing on the ground.

Imagine bidding for a property to discover that it burned down after you paid for it.

Sounds incredible?

Well, it happened when Rauf Said was a rookie investor in 2014.

Here’s the photo of the burned-down property he bought – without research!

We wouldn’t wish this upon anyone.

Do your research, especially a drive-by.

Your attorney can help prepare the paperwork and walk you through the process of purchasing and flipping a house.

Think walk-throughs, insurance requirements, and negotiating contracts.

After Purchase

Once you’ve purchased the property, start your rehab or renovation works ASAP.

Other works may not be accounted for that city inspectors may require that you put in for safety and regulatory.

Look at comparable properties nearby.

When determining the extent of renovations that need to be completed – look at the recently sold houses in the same neighborhood.

If they have updated granite countertops, add granite countertops to your “to-do” list.

Get a comprehensive quote from your contractor and finalize your budget.

Agree on the timeline with your contractors.

You can put the research you did earlier to good use here.

Finally, be prepared for the unexpected.

Sometimes missed inspection deadlines or additional expenses not accounted for in the budget can add up.

It evens the most experienced flippers — the key is learning to roll with the punches.

Quick Sale

After the renovations are complete, get the house ready – it’s time to put your home on the market.

Your Realtor or experienced agent will be a valuable asset by listing the property and helping you market it to buyers.

Tip: One of the ways to make a quick sale is to sell your property slightly below the market price range.

You’ll be surprised with the impression of buyers by just lowering the price somewhat by $5,000.

Remember that with passing days on the market – your property looks stale.

Tip: Home staging simply means preparing the home to sell to appeal to the most potential buyers who will pay the highest possible price.

You can DIY home staging instead of hiring a professional stager if you have a flair for interiors or extra furniture set to showcase the home!

Once a buyer is interested in a competitive market, work with your attorney to ensure all the documents are signed.

Once you have a successful home sale, any amount that exceeds what you’ve put into the house is pure profit.

How to Start a House Flipping Business

Home staging works to let the potential buyers see what the possible usage of the home is.

How to Start a House Flipping Business

A well-appointed kitchen, cabinets, and electrical appliances make the home very attractive!

Bonus: Source your deal

For real estate investors, the success of your house flipping business depends mainly on active deals like the supply and demand of distressed properties.

Factors like material and labor costs affect your renovations or rehab expenses and profit margins in the county or the local real estate market.

There are a few methods to source for your supply of properties.

  • County auction
  • Traditional broker
  • Real estate wholesaler

Identify your target property market might help you decide to find the right choice for your project.

County Auction

You may find higher volumes of properties available at a county auction.

However, the chance of you buying a lemon is pretty high if you don’t do your research.

With the home supply heating up, you may be caught in a bidding war and outbid someone with ready cash upfront.

Real estate wholesaler

A wholesale broker can show you distressed or foreclosed properties.

Traditional broker

A traditional broker might be right for you if the real estate market is new to you or needs help finding a specific type of property or building.

Before you jump in to renovate, you need to keep a close tab on the Costs to complete everything on the property.

Keep in mind the duration of the rehab works.

And if you are using a loan, know how much you have and what is borrowed for your fix-and-flip loan.

Bonus: Timelines & Budgets

No matter which project you choose to start, you need to implement a few more things about your house flipping business.

  • primary timelines
  • projected budgets
  • your market
  • properties you plan to flip.

As always, follow the best practices method for a successful return on investment.

As business owners, once you develop a business strategy, business plans, assemble a team, identify a property, and buy the property.

Get all the permits, insurances, and inspections out of the way first.

Then it is time to start implementing your renovation or rehab plans.

You need to plan and think about marketing and sell the property.

Liaise with realtors, cleaning, and staging your ready properties are just the final steps of getting your house-flipping business underway.

Make sure you commit to your business plan with your finances in place. 

Business Strategy & Planning

Lack of planning, logistics, and administrative organization will make or break your project.

While you have the potential to make a big, quick profit, starting a house-flipping business is no walk in the park.

You’ll need to scout properties, calculate renovation costs, source a trustworthy crew, possibly apply for a small business loan.

All these do not take into account the curveballs that may arise with every step.

Approach the process with a detailed business plan in hand will help keep you on track.

As you grow more confident with your business strategy and execution plan, you will become more adaptable to those unpredictable circumstances which may inevitably arise.

Grow your network.

Use your first fix-and-flip project to foster relationships with industry professionals in the state you are in and work to build a lasting relationship.

Your next house flip will be smoother with their support when you have a good network of investors, realtors, and carpenters whose collaboration skills you need.

Experienced contractors and agents can connect you with other suppliers and vendors.

Your network gives you the leads on properties, service providers and provides advice on specific projects.

Trusted contacts in the industry help you cover your blind spots and ensure estimates for properties and repairs are accurate – saving you time and money.

Make estimates—then double them.

Unless you’re already in possession of a property, have sufficient Cash, and have experience with home repairs, the process of flipping a home will require timelines and cost estimates at every turn.

Err on the side of caution when making any projections about the cost and duration of the renovation.

That’s especially important if you’re financing your startup with outside investors who need to see that you’ve done your due diligence before putting their capital on the line.

How to Start a House Flipping Business

Starting a house flipping business can be rewarding when you see the before and after transformation of homes.

Final Thoughts On Owing A House Flipping Business

Flipping houses just like any other business isn’t easy – no matter how simple it looks on TV.

Since 2014 Noble Sky has helped over 300 investors start their house flipping business where we do 99.99% of the work and heavy lifting.

Our investors have found that house flipping is extremely rewarding.

After we helped them flip their first few houses and see the returns, the process became more exciting.

As with any other business, once you see the company making money, you will invest more.

You don’t have to go at it entirely alone, although if you want to, you can.

With the business resources on this website, please check them out and learn more knowledge to get ready to build your business.

FAQ about starting a house flipping business

Some attendees at our online webinar have asked these questions.

Can you flip a house with 50k?

Flipping properties is one answer to how to invest 50k in real estate.

For novice investors, 50k should cover the entire house flipping process, including purchase, closing costs, repair costs, and insurances.

An estimated repair cost is around 20% of the property’s price.

At Noble Sky, we buy distressed properties from county auctions at a substantial discount to the current market value.

Hence, you get immediate equity and a min 30% profit when you sell the property.

Do House Flippers make money?

For a house to be considered a flip, it must be bought to resell quickly.

The time between the purchase and the sale often ranges from a couple of months to a little over a year.

After completing the rehab works, the houses are staged for a quick sale.

House Flippers make money from selling the home for a much higher price than they purchased it initially.

The houses are sometimes distressed properties and other times from wholesaling.

What is the average profit on flipping a house?

Some investors make as much as $100,000 or more, and others make less than $20,000.

So, is there the average for a smart investment?

Typically, the average investor makes $30,000 net profit on a house flip if all factors align for the right sales price.

You will want to sell the Flipped Property slightly below the current market value then hold on to it for an unrealistic inflated price.

How can I make the most money on Flipping Houses?

  • Flip Houses for Cash.
  • Renovate With a Buyer In Mind.
  • Finish Jobs Early.

Is a house flipping business profitable?

You may see Flippers on TV shows that make a sale price of $100,000 on a fix and flip, but television can be deceiving when it comes to actual renovation costs.

It is rare to make a $100,000 profit margin on house flips unless you deal with high-value/high-risk properties.

How many houses can I flip in a year?

In general, there is no limit to the number of houses you can flip in a year.

However, the average full-time house flipper can expect to flip any project between 2 and 7 houses a year from a practical and logistical standpoint.

How long does it usually take to flip a house?

According to a 2018 study by Attom Data Solutions, it takes an average of 180 days or about six months for a house flipping process.

The flipping process includes buying a wide range of homes, renovating, and selling them to their next owner.

A common mistake for first-time home flippers is to believe that a house can be flipped in a month or two!

At Noble Sky, the actual time taken is between 9 to 15 months.

Some delays can be expected with

  • inclement weather
  • approval of permits
  • lack of laborers
  • shortage of material
  • house buyer’s bank loan approvals

How do I start Fixing and Flipping Houses?

If you decide to start your own House Flipping Business, you will need to go through these steps on your real estate investment.

How to Start a House Flipping Business

A single-family home with a white picket fence in quiet neighborhoods symbolizes the ideal middle-class suburban American life with a family, children, and peaceful living.

Business Opportunities With Noble Sky International

The real estate industry is a super lucrative business opportunity.

Aside from starting your house flipping business, there are so many other different avenues that you could take.

These real estate business ideas range from working solely online, as a technology provider, or in in-person roles.

You base your decisions after weighing the risks and profit each choice holds.

As a Property Flipper, you will need a more considerable sum of Cash and have a team to research to determine if the property is worth investing in.

You could also do this as a Wholesale Flip.

In this case, you sell the distressed property as-is to another investor, and he remodels it and resells it to the eventual homeowner.

Your house flipping business can be run to buy houses for cash companies, other LLCs, or Real Estate Investors.

Other Ideas Aside From a House Flipping Business

Once you are in the real estate business, you will see many opportunities open up.

When you own homes, you can be a landlord, own a rental business, and host an Airbnb.

Become a Landlord

Becoming a landlord may be your next big business venture in real estate.

If you have capital and want to invest, becoming a landlord can reel in a Cash Flow rental income every month.

Best of all, Noble Sky helps procure and manage the properties for the investors.

You don’t have to manage the home, find the tenants, collect rent, or maintain its condition.

Check out SkyRental if you are interested in a passive retirement income.

How to Start a House Flipping Business

You can turn your house into vacation rentals, cabins, beach houses, unique homes for travelers to experiences as a host on Airbnb.

Be an Airbnb Host

Part of SkyRental’s business opportunities is to use your rental properties as Airbnb.

Airbnb is increasingly popular in the United States as Americans prefer to experience staying in a home rather than your typical hotel.

In the cities and metro areas where there is local tourism or popular cities, people regularly have excellent opportunities for an Airbnb rental.

With all of these business ideas in real estate, you not only have multiple avenues to choose from – you have the option for numerous types of revenue streams!

Connect with Real Estate Investors

Some Real Estate Investors are like angel investors – they have access to larger sums of money but don’t have the time to invest in building another business.

At Noble Sky, we work with both types of individuals – some who think they want to be hands-on and others who have no time to run the business on US time.

Unless you want to quit your job and run your house-flipping business full time, you may want to consider the Business Opportunities by investing with Noble Sky.

A House Flipping Business is not a get-rich-quick formula.

Since 2014, we have helped over 300 investors set up their own LLC in the US to run their house flipping and rental business with an excellent return on investments.

We do the in-depth research, property and market analysis, and bring you a Property Investment Report with projected profits.

You can decide if you want to take up this business opportunity or pass it up.

The choice is entirely up to you.

However, listen to what our 300 investors from 9 countries and 17 cities say about their property portfolio here.

We extend an invitation to our 2-hour FREE online webinar or a full-day workshop if you want to attend to ask and clarify your questions.

At Nobel Sky International, we help you get started by streaming the business for your and cover all the pertinent items include liaising with contractors, sourcing for materials, getting labor to do the job, and getting inspection, approval, and permits.

With the Nobel Sky SkyInvest Concierge Service, all investors are presented with an Investment Property Analysis Report – you get to select the property you are interested in investing in as a project.

Conclusion

In conclusion, a House Flipping Business takes time, and it’s not for people who want to generate quick sales or make money fast.

So, if you are seriously looking to invest in real estate in the United States, and want a professional firm that operates a US real estate business from Singapore, the next best time to invest profitably is now.

Reach out to us if you are interested in working with Noble Sky to get your investments off the ground.

Suppose you want a one-on-one personalized consultation with me on your House Flipping Business or are interested in Rental Income.

Simply fill up the form below, and we will be in touch!

 

 

 

 

 

 

 

 

 

DISCLAIMERS: Any information or advice available on the Noble Sky International website is intended for educational and general guidance only. Noble Sky Core LLC and Noble Sky Institute Pte. Ltd. shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising from accessing or using any of the content available on this channel. Consult a financial advisor or other wealth management professional before you make investments of any kind.