Start here: this article is part of our fix-and-flip collection. For the full picture, read our complete guide, Sell As-Is or Fix It Up First? A Homeowner's Guide to Selling a House That Needs Work.
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Learn how to source quality contractors, vet their work and references, manage projects effectively, and build long-term relationships that serve your portfolio...
Frequently asked questions
How do investors calculate a maximum offer on a flip?
The common shorthand is after-repair value multiplied by roughly 70%, minus the repair budget — the spread covers financing, holding costs, closing costs on both ends, and profit. The two inputs that break deals are an optimistic ARV and a repair estimate built from a walkthrough rather than contractor bids.
What are the most common ways a flip loses money?
Underestimating the scope once walls open up, timeline slippage that stacks up interest and utilities, over-improving beyond what the neighborhood supports, and buying at a price that never had margin. Permitting delays are a quieter killer, especially on structural, electrical, or plumbing work.
What are my options if a flip stalls mid-project?
You can refinance into a longer-term loan and rent it out, bring in a partner, or sell the project as-is to another investor and stop the bleeding. Holding costs compound every month, so the worst outcome is usually the decision that gets deferred. We buy in-progress rehabs directly when the math has stopped working.
What does the selling process look like start to finish?
With SilverCrest Estates: you share the property details, we underwrite it and send a written offer (usually within 24 hours), we confirm condition with a brief walkthrough, then title work runs while you pick a closing date. You sign at the title company or remotely, and funds are wired the same day the deed records.
Sources & further reading
Primary sources we consulted for this article. Rules vary by state and change over time — always confirm against the original source.
- 1Business structures and liability basics
U.S. Small Business Administration
How entity choice affects liability and taxes for people who buy property as a business.
- 2Home improvement and energy-savings guidance
U.S. Department of Energy
Which upgrades actually reduce operating costs, useful when weighing pre-sale repairs.
- 3Selling Guide: eligible property and sale types
Fannie Mae
The underwriting standards conventional buyers must meet, which shape financed-offer risk.

About the author
Michael Thompson
Fix & Flip Expert
Michael Thompson works with the SilverCrest Estates acquisitions team, helping homeowners across 50+ US markets understand their options and close on their own timeline.
Disclaimer: This article is for general information only and is not legal, tax, or financial advice. Real estate rules vary by state and change over time. Consult a licensed attorney, tax professional, or financial advisor about your specific situation before acting.





