Your first flip preparation kit
Build your first-deal plan.
Use this checklist and cash worksheet while you search. Print a copy, record your assumptions, and turn a promising property into a clear financing submission.
Print and complete
First Flip Readiness Worksheet
Check off the preparation steps and fill in the amounts on your printed copy. These are working assumptions to discuss with your lender.
1. Prepare the essentials
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Choose the project
Write down your target market, property type, maximum purchase budget, and repair scope you can manage.
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Identify the people
Line up contractor bids and a plan for title, property insurance, permits, and access to the property.
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Support the finished value
Collect relevant sold comparable properties. Note differences in condition, size, location, and finish.
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Price the work
List labor, materials, permits, timing, and uncertain items. Match the budget to the contractor’s proposed payment schedule.
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Plan the exit
Estimate sale proceeds after costs and loan payoff, or test the rent and financing needed for a rental refinance.
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Check your available cash
Complete the worksheet below using accessible funds. Disclose any partners, borrowed funds, or other projects using that cash.
Useful references: scope of work guide, loan requirements, and flip calculator.
2. Separate your cash commitments
Use your current available balance for A and record its date below. Plan remaining cash needs from that same date. Record every dollar once. Ask which reserves overlap with carry or contingency and how the loan funds acquisition and rehab.
Starting date for balance A and remaining cash needs:
| Category and calculation | Your amount |
|---|---|
| A. Cash available for this project Exclude money already committed elsewhere. Identify any conditions on access to partner or borrowed funds. | |
| B. Closing contribution Equity, fees, and prepaids, plus any reserve collected at closing. Reconcile with the proposed settlement and funding schedule. | |
| C. Closing deposits already paid and credited Only include deposits paid before recording A. Subtract B − C to find the remaining closing contribution; exclude contractor deposits here. | |
| D. Cash remaining after the closing wire A − (B − C). This is the starting cash for the project after closing; it is not all available to spend on repairs. | |
| E. Carry budget after closing Monthly interest, taxes, insurance, utilities, and upkeep × planned hold. Add a delay scenario; exclude amounts already included in B. | |
| F. Repair contingency Set aside a cushion for identified uncertainties and possible overruns, separate from the approved rehab budget. | |
| G. Peak cash gap before reimbursement Use the draw timeline below. Measure the most rehab cash you must advance before reimbursements catch up. | |
| H. Additional required reserve Only add a lender-required amount not already accounted for above. Confirm whether reserves are verified or collected. | |
| Planning cushion or shortfall D − E − F − G − H. A shortfall means the plan needs revision. A positive result is a planning estimate, not loan approval. |
3. Check the gap before rehab reimbursements
For each stage, total the rehab payments still to be made after your starting date, then subtract reimbursements expected to arrive by that stage. Use the highest positive balance for G, or zero if none. Include future deposits, inspection fees, and a delayed-reimbursement scenario; the approved draw schedule controls.
Do not add contractor deposits or bills paid before recording A: they have already reduced that balance. Include any reimbursement for those earlier payments only at the stage when you expect to receive it. Update the plan with actual payments and receipts as work progresses.
First work stage
- Payment due date
- Blank to complete
- Rehab payments after starting date
- Reimbursements after starting date
- Net cash needed by this stage
Next work stage
- Payment due date
- Blank to complete
- Rehab payments after starting date
- Reimbursements after starting date
- Net cash needed by this stage
Delayed draw scenario
- Payment due date
- Blank to complete
- Rehab payments after starting date
- Reimbursements after starting date
- Net cash needed by this stage
Add stages for your project as needed. Read the rehab draw guide and test total carry with the flip calculator. For a rental exit, also use the BRRRR calculator.
4. Assemble the next conversation
Summarize the address or target, price, repair budget, supported value, available cash, contractor status, exit, and closing deadline. Identify which figures are estimates.
- Contract or property details
- Line-item scope and contractor bids
- Sold comparable property support
- Cash and draw-timing plan
- Entity, title, and insurance questions
- Sale or refinance exit assumptions
Keep account statements and identity documents for the appropriate secure intake step. This worksheet is for preparation and does not submit a financing request.
My next action or unresolved question:
Using the first-flip worksheet
- Do I need a property under contract to use this checklist?
- No. Use it while searching to set a budget and identify missing preparation. Once you have a target property, replace your estimates with actual prices, bids, comparable sales, and dates before submitting a financing scenario.
- Is the cash worksheet a financing quote?
- No. It organizes your planning assumptions. A loan quote, approved budget, closing statement, draw schedule, and underwriting requirements determine the actual figures. Reconcile them before relying on the total.
- What should I do if I find a cash shortfall?
- Revisit the purchase price, scope, timing, and available capital before committing. Disclose any proposed additional debt or partners to the lender. Do not assume that a higher loan amount or future refinance will cover the gap.
Review the First Flip Funding Review before submitting. Working on an existing commercial asset instead? See commercial real estate refinancing.
Have a property ready to discuss?
Use the existing fix-and-flip scenario form to share the deal. Tell us it is your first project and identify the numbers or documents you still need to confirm.
Or call (833) 264-7776