Every fix and flip project in Dallas-Fort Worth lives or dies by one document: the scope of work. Before a single nail gets pulled or a cabinet gets demoed, your scope sets the roadmap for everything that follows, from your budget to your draw requests to your final profit margin. At HiFi Hard Money, we’ve worked through thousands of projects with investors across DFW, and the ones that close clean and profitable almost always start with a scope that’s clear, realistic, and built for execution.
Here’s how to put one together the right way.
What a Scope of Work Actually Does for Your Project
A scope of work isn’t just a contractor checklist. It’s the document that connects your purchase price, your rehab budget, and your after-repaired value into one coherent investment thesis. When you bring a project to us, we’re looking at that scope alongside the property to understand what the numbers are telling us. A well-organized scope makes the lending conversation faster and gives your contractor less room to run up costs mid-project.
We prefer a simple one-page format. It doesn’t need to be a 40-line spreadsheet with color-coded columns. What it does need is a clear breakdown of the work by category, realistic cost estimates for each line item, and a logical sequencing of trades so nothing gets done twice.
Start with the Property’s Biggest Needs First
Walk the property before you write a single line. Take photos and video of everything, from the roof to the foundation. Your scope should prioritize structural and mechanical work above cosmetic updates because those are the items lenders and appraisers pay attention to, and they’re the ones that blow budgets when they get discovered mid-rehab instead of upfront.
In the Dallas-Fort Worth market, roof condition, HVAC age, and foundation status are the three areas we see that cause the most costly surprises. Address them in your scope first, price them honestly, and everything else becomes easier to manage.
Build Your Line Items Around Trade Categories
Once you’ve handled the priority items, organize the rest of your scope by trade. Plumbing, electrical, framing, drywall, flooring, cabinets, fixtures, paint, and landscaping should each have their own section with estimated costs. This structure makes it easier to get competitive bids from subcontractors and easier for us to review when you’re applying for your draw.
Single-family homes in the major Texas markets like Dallas, Fort Worth, Austin, San Antonio, and Houston tend to follow predictable rehab patterns. Knowing what a full kitchen renovation typically costs in your target neighborhood helps you gut-check your numbers before you commit. If your scope shows a kitchen budget that’s well below what comparable renovations reflect in the area, we’re going to have a conversation.
Price for Reality, Not Best Case Scenarios
One of the most common mistakes we see from newer investors is scoping for the lowest possible outcome. Labor shortages, material delays, and unexpected structural issues are part of Texas real estate, not exceptions to it. Build a contingency line into your scope, typically somewhere between 10 and 15 percent of your total rehab budget, and treat it as a real cost rather than a number you hope not to spend.
This matters for your draw process, too. We work from your scope when we process draw requests, and our physical inspection typically happens once, at around 40 to 50 percent completion. After that, photos and videos are usually sufficient. The cleaner and more accurate your original scope, the smoother those draw approvals go.
Connect Your Scope to Your ARV Before You Start
The last thing your scope needs to do is tie back to your after-repaired value. We lend up to 75 percent of ARV on fix and flip projects in the DFW area, so your renovation decisions should always be framed around what the market supports, not what looks impressive. Over-improving a home relative to its comp set costs you profit. A scope built with ARV in mind keeps every dollar working toward your exit.
Ready to talk through your next Dallas flip? Contact us at (972) 630-6676 or reach out at info@hifihardmoney.com. New investors typically close in about 5 business days. If you’ve worked with us before, you may qualify for our Express Lane with closings in as few as 3 business days.
FAQs
Does HiFi Hard Money review my scope of work before approving a loan?
Yes. We work directly with your scope during the loan process and prefer a simple one-page format that outlines your rehab by category with estimated costs.
What property types does HiFi fund in the DFW area?
We focus on non-owner-occupied single-family homes in the major Texas markets. Multifamily may be considered on a case-by-case basis.
How does the draw process work once my project is underway?
We typically conduct one physical inspection at around 40 to 50 percent completion. After that, photos and videos are generally sufficient. Draw inspection fees and wire fees are deferred until you sell the property.
How much can I borrow for a fix-and-flip project?
HiFi lends up to 75 percent of the after-repaired value on fix-and-flip loans in the DFW area.
