Business Plan · Dallas / DFW
You already have the rare skill — making a tired house look amazing. This is the plan to build a business around it, in order. Each card is something to do or research, not just read. The first two phases earn cash and a network with almost no money down; buying your own house comes last, on purpose.
The one number that keeps you safe — the 70% rule
Max offer = (ARV × 0.70) − repair cost
ARV = After-Repair Value (what it sells for fixed up). Example: sells for $300k fixed, needs $40k of work → don't pay over (300k × 0.70) − 40k = $170k. That 30% haircut is your profit and your cushion for surprises. Run this on every single deal.
Weeks 1–8. Almost no capital. Goal: cash coming in, a portfolio, and a network of people who buy ugly houses.
Document 2–3 dramatic transformations with real photos: your own place, a friend's, or a cheap staging job done for free. In this business, before/after photos are the resume. Shoot them well (daylight, wide, same angle before and after).
Search Meetup and Facebook for "Dallas real estate investing", "DFW wholesaling", "fix and flip Dallas", and find DFW REIA. Go to two this month. Introduce yourself in one line: "I'm the guy who makes your ugly houses beautiful, on budget, on time." These people are your customers and your future partners.
A single-page website and an Instagram that is only before/afters. No essays. Add a phone number and "Dallas / DFW." This is what you send after every handshake.
From the meetups: offer to be the cosmetic-transformation subcontractor on someone's flip. You get paid, you learn the money side by watching a real deal end-to-end, and you build your reputation on their dime — not your risk.
Ask for their "make-ready" work — the cosmetic refresh between tenants. It's boring but steady and recurring, which pays the bills while the bigger stuff builds. Offer paint, fixtures, cleanup, small repairs.
Months 2–4, running alongside Phase 1. Goal: analyze real deals until a good number is obvious to you. Buy nothing yet.
Wholesalers find distressed sellers and sell you the contract for a fee. Get on their lists (free — you meet them at the meetups) and deals land in your inbox daily. You don't have to buy — just study the ones they send.
For 10 real houses, look up recently sold homes nearby that are similar in size, beds, and condition (Redfin/Zillow "sold" filter, or ask a friendly realtor for a CMA). That sold price — not the asking price — is your ARV. Getting this wrong is how people lose money.
Your renovation experience is the edge here. Write down your real numbers: $/sq-ft for paint, flooring, a kitchen, a bath, roof, HVAC. Beginners get destroyed by underestimating repairs — you shouldn't. Keep refining it on every job.
Take 10 deals the wholesalers send you. For each: estimate ARV, estimate repairs, compute (ARV × 0.70) − repairs, and compare to the asking price. After 10 you'll feel a good deal instantly. This is the single most valuable habit before you buy.
Cosmetic is your friend; the hidden stuff bankrupts flippers: foundation, roof, plumbing, electrical, mold, permits. Find a good home inspector and a foundation guy now and build the relationship — you'll want them on your first buy.
A house sells cheap because the seller has a problem — speed, condition, or hassle. These are the channels, easiest and safest first.
Wholesalers (already on their lists from Phase 2) and stale MLS listings — search for "as-is," "cash only," "investor special," "price reduced," or anything sitting 60+ days. Thinner discount, but you can inspect and it's low-risk. Have an agent set up alerts.
Drive older DFW neighborhoods (Garland, Mesquite, Oak Cliff, older Plano/Richardson) and note neglected houses — overgrown, boarded, mail piling up. Then reach the owner directly (mail, "we buy houses"). Also look up probate and tax-delinquent lists. Most work, least competition, best price.
Texas holds trustee sales the 1st Tuesday of each month at the county courthouse. Cheapest prices, highest risk: usually all-cash, often no inspection, sometimes you can't go inside. Go watch one to learn — don't bid until you've done a deal the safer way.
Buying below market still means buying. Solve funding before you find the deal, or the deal slips away.
The capital-light path: your first deal doesn't have to be yours alone. Bring the skill + sweat, let an experienced investor bring the cash and risk, and split the profit. You learn acquisition and financing on someone else's money — then go solo once you've seen it work.
Hard money is short-term financing against the deal, not your salary — how capital-light flippers buy. Expect roughly 10–12% + points and a fast clock. Meet a couple now (they're at the meetups too) and understand their terms before you need them.
Identify one investor from Phase 1 who liked your work and would fund a deal you renovate. Agree on a simple split in writing. This is the lowest-risk way to do a first flip.
Real budget also includes holding costs (loan interest, taxes, insurance, utilities while you work), closing costs both ends, and agent commission on the sale. A slow renovation eats profit fast — build these into the 70% math.
Only after Phases 1–4. By now you've seen deals end-to-end, you can price one in your sleep, and your money is lined up.
Watch out: a cheap house can be a trap. The discount is only real if your ARV and repair numbers are honest. When a deal feels too good, it usually means a cost you haven't found yet. Inspect for the invisible stuff before you commit.
Texas has its own contract quirks. Before you sign anything, have a real estate attorney lined up and buy through a title company so liens and ownership are clean. Non-negotiable on your first deal.
First deal: be conservative. Buy below your max offer, not right at it. Inspect for foundation/roof/plumbing first. If the numbers are tight, walk — there's always another house.
Close using the partner or lender from Phase 4. Keep a written scope and budget from day one.
This is your home turf: the transformation. Move quickly (every extra week is holding cost) and design to what buyers in that neighborhood want, not your personal taste.
List with your agent (or sell to another investor). Write down what the deal actually cost vs. your estimate — that correction makes deal #2 sharper. Then do it again with a bigger cushion and less hand-holding.