Quick answer
A fix-and-flip scope of work is a written renovation plan: the line-item work, the budget for each item, and the general timeline. A clear, realistic scope of work and budget help the review and set up the draw schedule.
A clear scope of work is one of the most important parts of a fix-and-flip loan. It turns your renovation into a plan we can review, and it sets up how your draws will be released. This checklist covers what your scope of work and budget should include. For the full review picture, see hard money loan requirements in Texas.
What a Scope of Work Is
A scope of work is a written renovation plan for a non-owner-occupied investment property. It lists the work to be done, the budget for each item, and the general timeline. A clear scope of work shows the work and what it costs; a vague one is hard to review.
What a Scope of Work Should Include
Use this as a starting point. The right level of detail depends on your project and the property.
| Component | What to include | Why it matters |
|---|---|---|
| Line-item work | Each task by area or system | Shows the full project |
| Material and labor costs | Cost for each line item | Supports the budget |
| Timeline | The sequence and duration of the work | Shows feasibility |
| Contractor information | Who performs the work, if available | Adds context |
| Permits | Where applicable to the work | Keeps the project on track |
| Value support | Comparable sales for the projected value | Supports the resale plan |
Line-Item Areas to Cover
Breaking your renovation into areas helps build a complete, line-item scope. Depending on the property, you may cover:
Exterior and structure
- Roof, siding, and exterior
- Foundation items, where relevant
- Windows and doors
Systems
- HVAC
- Electrical
- Plumbing
Interior
- Kitchen and baths
- Flooring, paint, and fixtures
- Interior finishes
Site and other
- Landscaping and exterior site work
- Permits, where applicable
- A contingency for the unexpected
Building a Realistic Budget
Underestimating cost is a common scope-of-work mistake. A budget that ties realistic costs to specific work is easier to review than an optimistic lump sum. You can estimate your project numbers with the fix and flip profit calculator and the hard money loan calculator, then build your scope of work around them. Nothing in a calculator is a quote.
How the Scope of Work Ties to Draws
Renovation funds are released in draws as stages of your scope of work are completed and inspected. A clear, well-organized scope makes it easier to request and document each draw. For how that works, see how hard money loan draws work. Keep your scope and budget updated as the project moves.
What We Review on a Fix-and-Flip
On a fix-and-flip, we review your purchase price, your scope of work and budget, value support for the projected value, photos, your borrower profile, and your resale exit before determining whether your loan fits.
What Can Weaken a Scope of Work
These do not always stop your loan, but they can slow the review or require more documentation:
- A single lump-sum budget with no line items
- Underestimated renovation costs
- No timeline or sequence
- A scope that does not match the property's condition
- A projected value not supported by comparable sales
Common Scope of Work Mistakes
- Treating the budget as a single number
- Leaving out a contingency
- Forgetting permits where the work calls for them
- Drifting off the scope mid-project without updating it
- Unsupported value assumptions
Related resources
Apply for a Texas fix and flip loan.
Send us the property, your scope of work, and your budget, or call 817-984-3129. Review is subject to underwriting, collateral review, title review, documentation, and approval.