A business plan for your fix and flip investments is an important step in obtaining financing or securing partners. This report details your business strategy, competitive analysis, and financial outlook. You develop concrete plans for your business and identify your risk tolerance. Partners see your level of commitment. Here is the information you will need to show on your business plan.

Mission Statement

The mission statement is the first formal communication that a lender or partner sees defining your business. Take the time to clearly identify the business’ purpose, define corporate strategy and summarize organizational goals. Providing an accurate representation of your business can seal the deal.

Project Goals

Define the short-and-long-term goals for each rehab project as you take them on. If you are working with a lender for one property, you will focus on just that one property. You will also need to provide overall goals for your entire organization.

Financial Forecasts

Prospective partners and lenders will scrutinize the financial data that you provide. The financials for the business should be provided. Include information about the project, such as sales price, rehab costs, and contingency plans.

Project Timeline

Your lender needs to see the project timeline. This step is crucial for your management of the fix and flip project. In addition to helping the lender, it also helps you stay on track.

Market Strategy

A SWOT analysis helps define your marketing strategy. It is important to know your business’s internal strengths and weaknesses as well as external opportunities and threats. Do not hesitate to include potential threats in your business plan, as long as you include the strategy for overcoming them.

Lending Requirements

Each rehab has its financial requirements based on criteria such as purchase price, rehab costs, insurance, and utilities. Be sure to include corporate financial records.

Organizational Structure

Share your and your primary partners’ related experience. You can also include details regarding the contractors or other professionals that will be working on the project. Identify each team member’s strengths and how they will make the rehab successful.

Contingency Plan

Every project needs a backup plan. Take the time to anticipate the potential challenges you may experience and detail how you plan to overcome them.

Investing the time to develop your business plan is a smart move for your fix and flip business. This not only allows you to provide concrete business information to lenders and partners, but it also helps you prepare for your next project.