Strategies for Successful Fix and Flips
Know what packs a punch—and what does not—when it comes to fix & flips.
Do not underestimate the importance of staging.
When the renovation work has been completed in a fix & flip, the seller has an opportunity to “stage” the home for sale—meaning that they can fill it with furniture and décor items for the purpose of allowing prospective buyers to envision how the house could look once they move in. Many investors choose to hire professional stagers who are skilled at transforming an empty room into an appealing space. Not all buyers are able to envision how an empty space might otherwise look and feel, so staging before photos are taken and before the home is shown to prospective buyers is critical. It is also critical that the home be staged in such a way that it has the broadest appeal without appearing too plain vanilla.
Some sellers do not have the budget to hire a professional stager. We previously published a blog post on how to stage a home in Baltimore without breaking the bank that can help such sellers navigate the staging process on their own.
It goes without saying that the staging should ensure that the space feels open, welcoming, and uncluttered (but not too spartan).
Learn from other people’s mistakes.
Build a good team.
We have already discussed the importance of making informed selections of lenders and contractors. It is just as important that the other professionals who will be involved in the fix & flip process are vetted as carefully. That includes business advisors, anyone involved in staging the property, the person who will photograph the property for the listing, the agent who will list the property, plus others. You should ask each person for references, you should call those references, you should ask to see examples of the person’s previous work yourself, you should check the public domain for reviews, etc.
Once a solid team is in place, that team can be retained moving forward and only tweaked when necessary. Having the right team in place also means that the fix & flip process becomes slightly more formulaic moving forward—meaning, for example, that it will be easier to predict how long the contractor’s work will take.