You can make tons of money from buying a home in need of renovations, fixing what’s broken, and then putting it back on the market. Performing a profitable fix and flip, though, requires planning, a whole lot of elbow grease, and the right approach. Here’s some advice on how to profit in this complicated field.

Plan Out Everything

Treat every real estate project like you would the creation of a startup. Write a formal business plan, complete with a mission statement, market analysis, sales strategy, and profit goals. Leave nothing unstated. The more defined your plan is, the better prepared you’ll be.

Gather Your Team

Before making a purchase, make sure you have people you trust on board. Get references from trusted individuals with experience in the real estate market. Having professionals already in place will save time and avoid situations where you’re scrambling to find the right person. You’ll also have easy access to knowledgeable professionals that you can consult when questions arise.

Arrange Your Financing

The odds are that you lack enough immediate cash to purchase a property outright. Especially if you’re simultaneously working on more than one fix and flip operation, you’re going to need a loan. There are specialty lenders that understand your situation and are most likely willing to work with you. Research your funding options before looking at homes. This will make it easier to strike fast when a buying opportunity appears.

Master the Art of Delegation

As the person in charge of a multifaceted undertaking, it’s you who needs to make sure that everything’s getting done. Since you have specialists in place, figuring out who will do what should be easy. Stop anyone who’s attempting to get a job completed that lies outside of her responsibilities. Also, practice communication skills. The better you are at stating expectations, the smoother you can expect your project to go.

Prepare for Emergency Situations

In the world of real estate, Murphy’s Law applies. You never know what will go wrong. From electrical shortages and animal infestations to misplaced documentation and wrongly calculated property surveys, you need a tool kit that matches every eventuality. Always have a flashlight, tape measure, emergency contacts, and extra copies of paperwork on hand. You want to be able to react quickly when trouble arises.

Successful fix and flip projects require intense attention to detail and employing the correct methodologies. Follow the above recommendations to make your real estate adventure as calm and lucrative as possible.