The Secret to the Most Efficient Timeline in House Flipping
You just signed a contract for a very lucrative flip opportunity. You bought the house at a price lower than you expected. It’s in a great neighborhood where fix and flip homes have sold quickly. Buyers are buying at a premium and fast. You’re ready to start work. What’s next?
How Do You Get a Rehab House on the Market Fast?
The secret: a job sequencing spreadsheet.
It’s nothing sexy, but it works magic. One recent house flipping project with a larger rehab was completed within three weeks and that included downtime for holidays. A big part was the job sequencing spreadsheet was right on target.
What is a Job Sequencing Spreadsheet for House Flipping?
A job sequencing spreadsheet in house flipping lays out all home repairs and rehab work on one spreadsheet. The goal is to see what parts of the job must start first, which rely on another to be completed, and what work can be done simultaneously.
The spreadsheet may include:
- Project categories
- Work to be done within each category
- Contractors or companies to complete the necessary work
- Start date and finish date of each project
- Any other necessary fields to effectively see the entire home rehab project
- Color coding for any portions behind schedule
The 4 Steps to Creating the Most Efficient Timeline for a Property Rehab
- Create your job sequencing spreadsheet first. You must have a plan in place before you start the demolition. All work should be sequenced and scheduled with strict start and finish dates before any work begins. As soon as you sign a contract for a property, start your job sequencing spreadsheet.
- Schedule all contractors ahead of time. Schedule your contractors and projects based on the spreadsheet and stick to the deadlines. “The order is critical, especially if you are using different contractors. Have this plan in place before you start the work,” advises Jeff Johnson, Director of Lending at Catalyst Funding, Houston.
- Accurately estimate project timelines. You need to know how long a project will take. You’ll get better at this with experience; however, in the meantime, do your research before the rehab work begins. Turn to your mentors in the real estate industry and house flipping articles as well.
- Hire reliable people. Whether a general contractor or individual contractor, you need to have a reliable network of people you can count on to get the job done as scheduled (By the way, we strongly starting using a general contractor until you get more experience). When new to house flipping and property investing, take time to network and align yourself with the right wholesalers, lenders and contractors. Look for partners who understand property investing and the importance of time management.
What You Don’t Want to Happen When Flipping a House
Imagine this: Electrical work done. Drywall up. Paint on. “Did anyone schedule the electrical inspection?” Nope. Uh oh!
Inspector arrives, and sure enough, a few adjustments need to be made behind the newly painted drywall. Out comes the drywall saw and there goes your project timeline and some of your profit.
This shows just how important job scheduling and sequencing are when flipping a house or rehabbing a home. When it comes to real estate investing, your profit margin is directly tied to staying on schedule.
The faster you can get the house on the market, the more opportunity you have for profits. Each day you own a property you have holding costs. Mortgage payments, taxes, insurance, HOA fees, and more. This extra time can cost you hundreds — maybe even thousands — of dollars a day in lost earnings.
Never underestimate the power of a job sequencing spreadsheet, good overall planning, and consistent follow-up.
Investing in real estate is a business venture that requires quickness, efficiency, and expert guidance. Catalyst Funding is a hard money lender that can help you succeed in real estate investment.
With a background in fix and flip and fix to rent projects, we can provide resources and guidance to help you through the entire process. We strive to be more than a lender! For more information, contact Catalyst Funding online or call us at (832) 699.6960.