Fix & Flip Guide

Fix & Flip Guide Using DealWorthIt

Step 1: Understanding Fix & Flip

Fix & flip is a real estate investment strategy where you buy a distressed property at a discount, renovate it, and sell it for a profit.

✅ Your Goal: Buy low, rehab efficiently, and sell for maximum value.
✅ Your Tools: DealWorthIt for finding, analyzing, and underwriting deals.

Step 2: Setting Up Your Business

Before getting started, set up the necessary legal and financial foundation:

• Form an LLC (Protect yourself legally)
• Obtain an EIN (For tax and financing purposes)
• Open a Business Bank Account (Separate personal and business finances)
• Find a Hard Money Lender or Private Investor (For funding deals)
• Build a Team (Contractors, realtors, lenders, and title companies)

Step 3: Finding the Right Property with DealWorthIt

Use DealWorthIt to source both on-market and off-market properties:

1. Off-Market Deals (Best for Discounts)

• Use DealWorthIt’s Skip Tracing to get seller contact details
• Find properties with foreclosures, tax liens, or absentee owners
• Contact sellers through cold calling, direct mail, or door knocking

2. On-Market Deals (MLS Listings & Auctions)

• Use DealWorthIt’s MLS Integration to track distressed listings
• Look for properties that have been sitting on the market for 90+ days
• Make low-ball offers on outdated homes

3. Direct-to-Seller Marketing

• Facebook & Google Ads
• Bandit Signs (“We Buy Houses Cash!”)
• Networking at Real Estate Investor Events

Step 4: Analyzing the Deal Using DealWorthIt

Once you find a potential deal, use DealWorthIt to determine if it’s profitable.

✅ Run Comps: Check MLS and recent sales of similar properties in the area
✅ Estimate ARV (After Repair Value): Use Market Rent & Comps Tool
✅ Estimate Rehab Costs: Use DealWorthIt’s Repair Cost Calculator
✅ Analyze ROI (Return on Investment): Use Flip Profit Calculator

Key Formula:

Maximum Allowable Offer (MAO)

MAO = (ARV × 70%) – Repair Costs – Holding & Selling Costs

Example:

• ARV: $300,000
• Repairs: $50,000
• Holding & Selling Costs: $20,000
• MAO: ($300,000 × 70%) – $50,000 – $20,000 = $140,000

Offer no more than $140,000 to ensure a good profit.

Step 5: Getting the Property Under Contract

Once you find a profitable deal, lock it up with a Purchase and Sale Agreement (PSA).

✅ Use DealWorthIt’s Legal Templates to generate a contract
✅ Include an Inspection Period to back out if needed
✅ Submit an Earnest Money Deposit (EMD) to the Title Company

Step 6: Securing Financing

Most fix & flippers use a combination of funding sources:

• Hard Money Lenders (Short-term loans based on property value)
• Private Money Lenders (Friends, family, or investors)
• Partnerships or Joint Ventures (Split profits with an investor)

✅ Use DealWorthIt’s Loan Calculator to compare financing options

Step 7: Renovating the Property

Create a detailed rehab plan to stay on budget and timeline.

✅ Get a Detailed Scope of Work (SOW) (List of repairs needed)
✅ Hire Reliable Contractors (Check reviews and references)
✅ Use DealWorthIt to Track Rehab Costs and Adjust Budgets
✅ Stick to a Timeline (Average flip takes 3-6 months)

What to Renovate for Maximum ROI:

• Curb Appeal: Landscaping, fresh paint, new doors
• Kitchen & Bathrooms: Updated appliances, modern finishes
• Flooring & Paint: Neutral colors and durable materials
• Lighting & Fixtures: Modern LED lighting

Step 8: Listing & Selling the Property

Once renovations are complete, sell for maximum profit.

✅ Get a Pre-Listing Appraisal (Verify ARV)
✅ List on the MLS with a Realtor or Sell Off-Market to Investors
✅ Use Professional Photography & Staging
✅ Market the Property via Facebook Ads, Open Houses, & Zillow
✅ Negotiate Offers & Accept the Best One

Step 9: Closing & Getting Paid

Once you accept an offer, the title company will handle the closing process.

✅ Review the HUD-1 Settlement Statement (Breakdown of final numbers)
✅ Pay Off Any Hard Money Loan (If applicable)
✅ Receive Your Profits via wire transfer or check

Example Profit Breakdown:

• Purchase Price: $140,000
• Renovation Costs: $50,000
• Holding Costs: $10,000
• Selling Costs: $15,000
• Final Sale Price (ARV): $300,000
• Net Profit: $85,000 🚀

Step 10: Scaling Your Fix & Flip Business

To grow and flip more properties:

✅ Automate Lead Generation with DealWorthIt
✅ Build a Network of Private Money Lenders
✅ Hire a Project Manager to Oversee Renovations
✅ Leverage Business Credit for Bigger Deals
✅ Expand into Multiple Markets Using DealWorthIt’s Market Research

Final Thoughts

Fix & flipping can be highly profitable when done correctly. By using DealWorthIt to find, analyze, and track deals, you’ll have a competitive edge and make smarter investment decisions.🚀 Start your first fix & flip today with DealWorthIt and build your real estate empire! 🚀