Fix & Flip Basics: A Beginner’s Guide for Real Estate Investors

Goodwin Capital Solutions • December 8, 2025

Fix and flip real estate investing has become one of the fastest ways to build wealth, generate cash flow, and grow a real estate portfolio. But success isn’t about luck—it requires strategy, planning, and access to the right financing. At Goodwin Capital Solutions, we help investors secure the capital they need to buy, renovate, and sell properties quickly and profitably.


Whether you’re new to fix and flip or looking to refine your process, this guide covers the essentials.

What Is a Fix & Flip?

A fix and flip investment involves purchasing a property below market value, renovating it, and selling it at a higher price. Investors profit from the difference between total investment cost and final sale price.


These properties are often:

 

  • Distressed
  • Outdated
  • Foreclosed
  • Under-maintained
  • In desirable or emerging markets

The Fix & Flip Formula

Successful investors follow a proven formula:


Profit = ARV – (Purchase Price + Rehab + Holding Costs)


ARV (After Repair Value) is the estimated value of the home after renovations. This formula helps determine:


  • Whether the property is worth buying
  • How much you should spend on repairs
  • Your ideal target sale price

Keys to Fix & Flip Success

1. Buy Right

Profits are made when you buy, not when you sell. Look for homes priced well below market value.


2. Focus on High-ROI Renovations

Choose upgrades that increase value, such as:

  • Kitchen updates
  • Bathroom remodels
  • Flooring
  • Paint
  • Curb appeal improvements


3. Know Your Market

Research comps, neighborhood growth, demand, and local sale trends.


4. Use Fast Funding

Traditional banks are too slow for competitive flip markets. Goodwin Capital Solutions offers fast, investor-friendly fix & flip financing.

How Goodwin Capital Solutions Helps Investors Win

We offer flexible fix & flip funding that allows you to:


  • Close quickly on undervalued properties
  • Finance purchase + rehab
  • Leverage capital to take on multiple flips
  • Scale your investing business faster

Final Thoughts

Fix & flip investing is profitable when executed with the right strategy, team, and financing. With Goodwin Capital Solutions, investors get the capital and support needed to make every deal a success.