Creating Standard Operating Procedures for Your Flip Business

Standard Operating Procedures (SOPs) document the repeatable processes in your business. They ensure consistency, reduce errors, enable delegation, and make your operation scalable beyond your personal capacity.

Deal analysis SOP: Document your exact process for evaluating a potential deal — where to pull comps, how to estimate repairs (per square foot multipliers by renovation level), your go/no-go criteria (minimum profit, maximum renovation scope, target neighborhoods), and the format for presenting analysis to partners or lenders.

Acquisition SOP: Define the steps from accepted offer to closing — due diligence checklist and timeline, inspection scheduling process, title review procedure, lender communication and draw setup, insurance procurement, and closing document review.

Renovation SOP: Standardize your renovation management process — scope of work template, material specification packages by price point, contractor onboarding and payment procedures, draw request format and approval process, inspection schedule and checklist, change order approval workflow, and photo documentation protocol.

Marketing and sale SOP: Document your listing preparation process — staging timeline and vendor contacts, photography scheduling and shot list, listing description template, pricing analysis methodology, showing management procedures, and offer evaluation criteria.

Financial management SOP: Standardize your financial tracking — chart of accounts, expense categorization rules, budget versus actual reporting frequency and format, draw request preparation, and profit and loss calculation methodology.

Start simple. Write down what you do for each phase of a project, then refine over time. The first version won't be perfect, but it will be infinitely better than keeping everything in your head. Update SOPs after every project with lessons learned.