Fix and Flip
Writing a Scope of Work That Gets Funded
Flipping is a math business wearing a construction costume. Here is the part of the math this topic covers.
Fix and Flip
The short version, then the substance.
Key Takeaways
- What it is
- Why lenders care so much
- The format that works
What it is. A line-item list of every task in the renovation with a price next to it. Demo, roof, HVAC, electrical, plumbing, kitchen, baths, flooring, paint, landscaping. It is the rehab budget made specific enough to inspect against.
Why lenders care so much. The scope of work drives the draw schedule. Vague scopes produce draw disputes and stalled projects. Specific scopes produce fast inspections and fast money. Ten extra minutes of detail now saves ten days of friction later.
The format that works. Group by trade, price each line, and note who does the work. Add allowances for finishes you have not selected. Total it, add contingency, and make sure it matches the number on your loan application exactly.
The South Texas angle. Averlend underwrites this every week in San Antonio and across Bexar County. If you are working a deal in Alamo Heights or anywhere else in the metro, the theory above comes with a local desk attached: see our San Antonio lending page or send the deal directly.
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Questions
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