House Flipping Property Acquistion Checklist

As a professional house flipper, one of the big requirements of my business is to scale to the point where — despite only making $15-30K per house — my company is able to sustain a significant annual income. To do this, I focus a lot of energy on creating systems and processes, and documenting those systems and processes so that anyone in the company can execute on them.
One of processes I have in place is the set of tasks required to get from putting a property under contract through due diligence and then through the final purchase of the property. Because the due diligence period for a typical purchase is only 5-10 days, there’s a lot to be accomplished in a small amount of time. If anything in the due diligence process is missed, it’s very easy to overlook key information that may ultimately hurt your project, and your profits. So, having a good process in place is not just about efficiency, it’s also about long-term success.
If you’re planning to do an investment purchase, I would recommend reviewing the Acquisition Checklist below; your list may vary a bit, but for the most part, these are the things you should probably be focused on accomplishing in the days/weeks between contract and closing…

PROPERTY ACQUISITION CHECKLIST

Upon Contract Acceptance

Ensure Access to Property:

• Make Copy of Property Key(s)
• Purchase New Lockbox
• Place Key(s) in Lockbox and Install at Property

If Certified Funds are Required for EM:

• Get Certified Funds for EM from Bank
• Submit Certified Funds to Agent

If Financing the Purchase:

• Send Contract to Loan Officer
• Provide Loan Officer Property Info
• Connect Loan Officer with RE Agent
• Have Loan Officer Schedule Appraisal
• Make sure Loan Officer Knows Anticipated Closing Date

Due Diligence

Inspections:

• Turn On Utilities for Inspection (water, gas, electric)
• Schedule Termite Inspection
• Schedule Property Inspection
• Attend Inspection and Take Notes for “Scope of Work”
• Get Final Inspection Report and Review for “Scope of Work”
• Get Termite Letter/Pest Inspection Report

Contractor Prep:

• Create Scope of Work
• Create Materials List
• Determine Which Contractors Are Needed:
• GC
• HVAC
• Roofer
• Electrician
• Plumber
• Pest/Termite Control
• Painter
• Landscaper
• Carpenter
• Schedule GC Walk-Through(s)
• Get Contractor Quotes

Purchase Decision:

• Perform Final Financial Analysis Using Estimates/Quotes
• Perform Both Flip and Rental Analysis
• Make Go/No-Go Decision on Purchase

Upon Contingency Finalization

Final Purchase Prep:

• Get Closing Date from Lender/Agent
• Arrange Landlord Insurance Policy
• If Financing, Connect Insurance Agent with Loan Officer
• Follow-Up on Appraisal with Lender
• Get Pictures/Video
• Choose a General Contractor
• Choose Sub-Contractors (if no GC)
• Determine Exit Strategy
• Create Rehab Schedule (if no GC)
• Create Final Budget

Prior to Closing

Final Loan and Closing Prep:

• Obtain and Review HUD-1
• Obtain and Review GFE (if financing)
• Ensure Loan is Ready for Closing (if financing)
• Get Certified Funds for Closing
• Determine How to Hold Title
• Get Partnership Agreement Documents Signed (if partnering)

Upon Closing

Day of Closing:

• Get Keys
• Change Property Tax Records to Home Address
• Get GC and Sub Contracts/Docs Signed
• Arrange GC and Sub Start Dates

Greg Hammond Eagle Thirteen Properties/ We Buy Houses Louisville