2016 is quickly coming to an end, which means 2017 is right around the corner. Tarek and I love to spend the last part of the year reviewing our business plan and taking the steps necessary to make sure we are ready to start flipping once the holidays are over.
For brand new flippers and experienced investors alike, right now is the perfect time to start planning for your first flip in the new year. Preparing now will not only ensure that you have plenty of work to start the year with, but also help everything run more smoothly.
Start the new year off right by following these easy steps.
CREATE (OR REVIEW) YOUR BUSINESS PLAN
Whether you consider house flipping a full-time job or just an extra source of income, one thing is certain: You need to have a business plan set in stone.
A necessary and essential part of any successful business is a business plan, which helps you determine your purpose and keeps you on track. Whether you plan to flip 50 houses during the year or are satisfied with five, a business plan will guarantee that you make the right decisions to help you reach your goals.
If flipping is not your full-time job, rehabbing may just seem like a fun side hustle. But without any direction, this extra source of income can quickly fizzle out. Create a business plan that outlines your strategy, includes your timeline and lays out your financial projections.
If you’ve previously created a business plan, now is the perfect time to review it to see if you are on track strategically and financially. You can make adjustments if necessary, but sticking to your business plan throughout the year will help you become a more successful house flipper.
SET YOUR INVESTING GOALS
Setting house-flipping goals is essential for your success as an investor. Take some time to write down your goals, as you’ll have a much better chance of reaching them if they are written somewhere you can see them.
A goal can be as simple as flipping 10 houses or making a profit of $50,000 by the end of the year. Make sure your goals are specific and are attainable. Instead of just saying “I want to flip 10 houses this year,” you could instead outline how and when you plan to flip those 10 houses — for example, “I plan to purchase and flip one house each month during this year.”
You will be much more likely to accomplish your goals if you’re specific about how you plan to achieve them.
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