Why Fix & Flip?
Fix and flip investing is one of the most accessible, highest-return strategies in real estate — and you don't need to be a millionaire to start. You need knowledge, the right team, and the discipline to stick to your numbers.
The Power of This Strategy
The concept is simple: purchase a distressed or undervalued property, renovate it strategically, and sell it for profit — or hold it for long-term income. But simple doesn't mean effortless. Success requires market knowledge, financial discipline, contractor management, and knowing when to walk away.
💰 High Returns
Create $50K–$150K+ in equity in just 3–6 months on a single deal.
🏦 Use Other People's Money
Hard money and private lenders fund your purchase AND renovation.
📈 Build Momentum
Every flip grows your network, skills, and capital for the next deal.
🔑 No Perfect Credit
Lenders evaluate the deal strength — not just your credit score.
Success starts with buying the right property. Remember: Numbers over Emotion.
— Patrice HumphriesThe Fix & Flip Process
Property Search Strategy
The deal is made at purchase. Every dollar of profit begins with finding the right property at the right price. Your search must be disciplined, systematic, and emotion-free.
MLS Search Strategy
The MLS is still one of the best deal sources — if you know exactly what signals to look for. Work with an investor-friendly agent or get your own license to access listings directly.
30+ Days on Market
Seller motivation grows with time. This is your negotiating leverage.
Keywords to Search
"TLC," "As-Is," "Investor Special," "Needs Work," "Priced to Sell"
Poor Listing Photos
Dark, cluttered, or sparse photos signal neglect — and opportunity.
Below Market $/Sq Ft
Target 20–40% below ARV price per square foot of renovated comps.
Off-Market Deal Sources
The best deals often never hit the MLS. Build systems to find properties before anyone else.
- ✓Wholesale buyers and bird-dog networks
- ✓Driving for dollars — noting vacant or neglected properties
- ✓Direct mail to absentee and out-of-state owners
- ✓Probate attorneys, estate sales, and foreclosure lists
- ✓Tax delinquent and pre-foreclosure property lists
- ✓Real Estate Investor Association (REIA) networking
The 15-Minute Deal Test
Financial Analysis & Deal Evaluation
This is where most beginners lose money — not because they can't do math, but because emotion overrides their numbers. The spreadsheet doesn't lie. Protect every dollar before you make an offer.
Key Terms You Must Master
ARV — After Repair Value
ARV (After Repair Value) is the projected market value of a property after all renovations are complete. It is calculated by comparing recently sold homes of similar size and condition in the same area.
MAO — Maximum Allowable Offer
MAO (Maximum Allowable Offer) is the absolute highest price you should pay for a property and still make a profit. This is your ceiling — never go above it, no matter how much you love the deal.
Hard Money Lending
Short-term private financing (8–15% interest). Funds both purchase and renovation. Patrice's preferred tool.
Holding Costs
Monthly ownership expenses: loan interest, insurance, utilities, taxes. Every extra week eats profit.
Seller Contributions
Negotiate the seller to cover closing costs. Reduces your out-of-pocket and improves your return.
Price Per Sq Ft
Sale Price ÷ Sq Footage = $/SF. Average comps to establish neighborhood renovated value.
The Golden Formula
ARV = After Repair Value | MAO = Maximum Allowable Offer
Most hard money lenders won't fund more than 70% of ARV. This formula keeps your offer aligned with what lenders will approve AND protects your profit margin after all costs.
Real Deal #1: The Fix & Flip
This is a real deal Patrice executed from start to finish. No hypotheticals. No textbook numbers. Real strategy, real execution, real results — including a move most investors overlook.
What Made This Deal Work?
- ✓Purchased well below market using hard money — no savings required
- ✓Negotiated seller contributions to reduce out-of-pocket closing costs
- ✓Acted as her own real estate agent — earned commission and controlled the deal
- ✓Converted upstairs loft into a 4th bedroom — high impact, low cost
- ✓Closed at $310,000 — capturing full market value
💡 The Loft Conversion Lesson
One of the most overlooked value-add strategies is converting underutilized space into functional bedrooms. This loft conversion required minimal structural work but significantly increased the bedroom count, appraised value, and buyer appeal. Always ask: what space exists that buyers aren't currently paying for?
I was the investor AND the agent on this deal. I negotiated seller contributions, converted the loft into a bedroom, and closed at $310,000. Every advantage was earned through strategy — not luck.
— Patrice HumphriesReal Deal #2: The BRRRR Strategy
Not every great deal ends at the closing table. Sometimes the smartest move is to hold the asset, pull equity out through refinancing, and let the property generate monthly income while you buy the next deal.
The BRRRR Breakdown
💡 Why a 7-Bedroom Property?
A 7-bedroom, 3-bath home at 3,530 sq ft near Prairie View A&M University is not a typical rental — it's an income engine. High bedroom counts near universities command premium rents through student housing, workforce housing, and shared-living models. Patrice saw what most investors walked past.
The BRRRR strategy turned one smart purchase into a cash-flowing asset AND freed up capital to go find the next deal. That's how you scale from one property to a portfolio.
— Patrice HumphriesRenovation Execution
The renovation phase is where profit is protected or lost. Poor planning, contractor mismanagement, and scope creep are the top reasons flips fail. Here's how to execute like a professional.
Define Your Scope of Work First
Before a single contractor walks the property, you need a detailed written Scope of Work (SOW). Without a clear scope, you cannot control the project, the budget, or the timeline.
Interior
Flooring, paint, kitchen, baths, fixtures, lighting, doors, trim, closets
Exterior
Roof, siding, landscaping, driveway, windows, gutters, curb appeal
Systems
HVAC, plumbing, electrical — inspect and bring to code before cosmetic work
Material & Labor
Include both in every line item so estimates reflect true project cost
Hiring Contractors the Right Way
Errors to Avoid
⚠ Budget Overruns
Always build a 10–15% contingency buffer into your rehab budget. Unexpected costs are not a surprise — they're guaranteed.
⚠ Unclear Scope
Without a written scope of work, every conversation becomes a change order. Define it upfront — in writing, always.
⚠ Poor Contractor Management
Ineffective oversight causes delays that raise holding costs. Show up. Stay involved. Check daily progress.
⚠ Sacrificing Quality for Speed
Rushing leads to mistakes. Quality work protects your ARV and appraisal. Move fast — but never sacrifice quality.
- ✓Written Scope of Work completed before any contractor starts
- ✓Minimum 2–3 contractor bids received and compared
- ✓All contractors verified: license, insurance, references
- ✓Signed contracts with scope, timeline, and milestone payments
- ✓10–15% contingency budget set aside
- ✓Systems (HVAC, plumbing, electrical) inspected first
- ✓Weekly site visits scheduled and documented
- ✓Final punch list completed before staging
Design & Staging
Design is where vision meets value. The right renovation choices can add $20,000–$50,000 to your sale price without blowing your budget. Think luxury-inspired — not luxury-priced.
Smart Design Decisions That Move the Needle
Kitchen
Shaker cabinets (white or black), quartz countertops, stainless appliances. Buyers make decisions here.
Bathrooms
New vanities, modern fixtures, clean tile. Contemporary and fresh always wins.
Flooring
Luxury vinyl plank (LVP) throughout — durable, beautiful, and budget-smart.
Paint
Warm neutrals: Agreeable Gray, Accessible Beige, or Pure White. Consistent throughout.
Lighting
Replace every fixture. Modern lighting transforms a dated home instantly and inexpensively.
Curb Appeal
Fresh landscaping, new front door, clean driveway. Buyers form opinions in 8 seconds.
Staging Strategy
Staged homes sell faster and at higher prices. Effective staging can yield 5–15% more than a vacant home — and prevents low appraisals that kill financed deals.
Higher Perceived Value
Staging creates atmosphere that justifies top comparable sale prices to both buyers and appraisers.
Avoids Low Appraisals
Staged homes give appraisers context. Vacant homes often appraise $10,000–$30,000 lower.
Key Rooms to Stage
Living room, kitchen, master bedroom, and primary bathroom — prioritize in that order.
Photography Matters
Professional photography is non-negotiable. Most buyers see your home online before anywhere else.
Luxury vision on a smart budget. Every design decision should earn its cost back — and then some.
— Patrice HumphriesSelling Your Property
You've purchased smart, renovated strategically, and staged beautifully. Now it's time to execute your exit — and recapture every dollar of value you created.
Time Drives Your Profit
Reduce Holding Costs
Every extra month reduces profit by $1,500–$2,500. Speed is money — protect your timeline.
List Immediately After Staging
Don't wait. Complete → Stage → List. Every day of delay is profit lost.
Realtor vs. For Sale By Owner (FSBO)
Using a Realtor ✓
MLS access, professional marketing, expert negotiation. Typically achieves the highest sale price.
FSBO
Save 2.5–3% commission. Attracts cash buyers. Requires your time, expertise, and negotiation skill.
💡 Patrice's Advantage
On the River Brook deal, Patrice served as her own buyer's agent — earning commission at closing. As your experience grows, consider getting your real estate license to control transactions and capture additional income on every deal.
Pricing Strategy
- ✓Price at or just below top renovated comps to generate multiple offers
- ✓Review sold comps in last 90 days within 0.5 miles, same size and finish
- ✓Overpriced homes sit — sitting homes lose perceived value and attract low offers
- ✓Spring and early Fall are peak selling seasons in most Texas markets
The BRRRR Strategy
Flipping generates capital. The BRRRR strategy multiplies it. Once you've mastered the flip, BRRRR allows you to recycle your money into permanent cash-flowing assets — building a portfolio one property at a time.
The BRRRR Framework
Why BRRRR Changes Everything
Traditional flipping is linear — you put money in, get money out, then need money again. BRRRR breaks that cycle. You buy, renovate, rent, and refinance to recapture most or all of your invested capital. The property stays in your portfolio generating monthly income, and your capital goes back to work on the next deal.
Flip vs. BRRRR — When to Choose Each
Choose to Flip When
You need liquid capital now · market favors quick sales · ARV supports strong profit margin
Choose BRRRR When
Rental demand is strong · property cash flows well · you want long-term passive income
Use Both Together
Flip some deals to build capital · BRRRR others to build passive income streams
The End Goal
Passive income that replaces the need to work — built one strategic property at a time
Flipping builds your account. BRRRR builds your future. The goal is to do both until the passive income replaces the need to work.
— Patrice HumphriesKey Takeaways & Your Action Plan
You now have the knowledge. The next step is action. Here are Patrice's core principles and your concrete 6-step plan to get started.
Patrice's Principles for Every Deal
Discipline Wins Deals
Stick to your numbers every time. The formula doesn't lie — emotion does.
Buy Right or Don't Buy
The profit is made at purchase. If the numbers don't work, walk away confidently.
Use Other People's Money
Hard money and private lending exist for investors. Your first deal doesn't require your savings.
Negotiate Everything
Seller contributions, price reductions, agent commissions — every dollar saved is profit earned.
Build Your Team First
Contractors, lenders, agents, inspectors — your team determines your outcome more than anything.
Think Legacy, Not Just Profit
Flipping builds capital. BRRRR builds assets. Together they build generational wealth.
Your 6-Step Action Plan
You don't have to be perfect to start. You just have to be willing to learn, work hard, and never quit.
— Patrice Humphries📞 Connect with Patrice
VESO Group LLC | vesogrp.com | (346) 382-8906 | @veso_group_LLC | Spring, Texas