Rebuild Riches: The Ultimate Flipping Simulator
Unit Overview Summary
General summary of unit:
Skills students need or will develop:
Goals For A Final Project:
"How can we successfully flip a house to maximize profit and create an appealing living space?"
Rebuild Riches
Big Question
Teacher Directions (material included)
Feel free to add what you would like to this unit or extend it into a new unit
To take the project to new heights, students could also embark on a hands-on adventure by crafting an object or sewing something that enhances the showcasing of the house, such as custom curtains, decorative pillows, or artwork. Additionally, they could elevate the house showing experience by baking mouthwatering treats that will entice potential buyers. Imagine the enticing aroma of freshly baked cookies filling the air as buyers explore the renovated space!
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Quick Lesson Pages Links
Project Duration (approximate) 14 to 16 Days
Lesson 1
Intro
Teacher Page: NOT SHARED WITH STUDENTS
Teacher Notes & Resources For Lesson:
Discuss the chart that shows how much can be made on a house and why people do it!!!
See if you have anyone in the class who has a parent that is in real estate or construction and have them asked their parent if they have been involved in a flip, you may be able to have them come into your class.
Potential Lesson Timers used for pacing
Materials Needed: Presentation
Objectives & Success Criteria
Embark on an epic real estate adventure with the "Rebuild Riches: The Ultimate Flipping Simulator"
YOU WILL:
Note: This thrilling challenge is designed to ignite your entrepreneurial spirit.
What Hours Do You Prefer Working?
Who Knows A Real Estate Agent?
What are some of the skills you need to flip a house?
Would you risk everything to flip a house?
Activity: You will be teamed up with a partner, how could you protect yourself if one of the following happening to you? (Example Below) -Assign Each Group a Scenario
Discovering that the market value of the renovated property has decreased since the initial purchase, leading to a potential loss or lower-than-expected profits. - Answer: Build in an adequate profit to your flip and only repair or improve areas of the house that will bring you the most profit (kitchens and bathrooms)
Criteria | 4 - Distinguished | 3 - Proficient | 2 - Developing | 1 -Beginning |
Problem Analysis (Problem Solving) | Student thoroughly analyzes the issue, considers multiple factors, and accurately identifies the implications. | Student identifies and explains the problem, but may miss some key aspects or fails to provide a complete analysis. | Student provides a limited analysis of the problem with several missing details or inaccuracies. | Student fails to adequately analyze the problem or misidentifies key aspects of the problem. |
Solution Generation (Professional Communication) | Student proposes a comprehensive and well-thought-out solution that addresses the problem and considers various factors. | Student suggests a reasonable solution, but may overlook some aspects or have minor inconsistencies. | Student offers a limited solution with several gaps or inconsistencies in the solution. | Student proposes an incomplete or ineffective solution, or fails to propose any solution at all. |
Why do people flip homes?
What show do you watch on TV about Flipping Home If Any?
Exit Ticket:
Lesson 2
The Challenge
Teacher Notes & Resources For Lesson: (You may take 1 to 2 days here and could add some additions resources, such as some short clips from flipping show. DO NOT SHOW MORE than 5 to 10 minutes of highlights)
Potential Lesson Timers used for pacing
Teacher Page: NOT SHARED WITH STUDENTS
Materials Needed: Slides
Objectives & Success Criteria
You have been given a golden opportunity to dive into the exciting world of real estate investment.
Have you ever watched those captivating TV shows where people purchase houses, transform them, and sell them for a profit?
Well, get ready to step into the shoes of a real estate investor as we embark on a thrilling house flipping adventure!
In this project, you will have the chance to make critical decisions and strategize to "flip" a house successfully. But what exactly does flipping a house mean? It involves purchasing a property, making improvements to increase its value, and then selling it for a profit. Now, it's your turn to become a House Flipper and make those smart choices that will lead to financial success!
You will have a list of options to choose from as you create the perfect house for resale.
Remember, there are no "correct" answers in this project. Just like in real life, you need to make choices that make sense �for you. The key is to think strategically, evaluate your�budget, and make the best decisions that will yield �the highest possible profit.
Are you ready to take on the challenge and become a successful House Flipper? Let's dive in and start making those strategic choices that will lead to big profits!
Expectations and Hints for Success
1. You have a total budget of $400,000 to purchase the house, do any repairs/remodeling, pay real estate fees and closing costs, etc. So, your house and all your choices should total $400,000 or less (you do not have to spend all your money).�
2. You will choose ONE house from the four choices and then as many of the options from the list as you would like (that fit in your budget). List your choices on the worksheet provided.�
3. You must pay closing costs for your sale which is 5% of your total selling price.�
4. Make sure to read the house description so you know what things you need to improve in the house. This will make a difference in what you can sell your house for in later assignments.�
5. The closer you can get your house to “move in ready” (meaning that the buyer does not need to do anything else to the house for it to be “perfect”), the more you can charge for the house.
Not sure what Criteria or Constraints Mean?
Problem Restatement: Use The Rebuilding Riches Handout
Criteria and Constraints:
List three criteria or factors that you need to consider when making decisions in this project.
a.
b.
c.
Identify two constraints or limitations that you must adhere to throughout the project.
a.
b.
Example Answer: TEACHER EYES
Problem:
The goal is to successfully flip a house by purchasing a property, making improvements to increase its value, and selling it for a profit while staying within a budget of $400,000. The challenge is to strategically choose the house and options for renovations that will maximize profits.
Criteria and Constraints:
Student Response:
Criteria | 4 - Distinguished | 3 - Proficient | 2 - Developing | 1 -Beginning |
Problem Statement�(Problem Solving) | The problem statement clearly explains the goal of flipping a house for profit through strategic decision-making and staying within a budget of $400,000. | The problem statement provides a general understanding of flipping a house, but lacks clarity in explaining the budget and strategic decision-making. | The problem statement is unclear and lacks a clear understanding of flipping a house for profit or the budget constraints. | The problem statement is absent or does not address the key aspects of flipping a house or the budget constraints. |
Criteria�(Computational Learning) | The criteria for successful house flipping, such as budget limitations, house selection, renovation options, and impact on selling price, are clearly stated. | The criteria for successful house flipping are mentioned, but some aspects lack clarity or specificity. | The criteria for successful house flipping are partially addressed but lack clarity, specificity, or coherence. | The criteria for successful house flipping are absent or not properly addressed. |
Constraints (Computational Learning) | The constraints, including the $400,000 budget limit, the need to pay closing costs, and the importance of making the house move-in ready, are clearly defined. | The constraints are mentioned, but some aspects lack clarity or specificity. | The constraints are partially mentioned but lack clarity, specificity, or coherence. | The constraints are absent or not properly addressed. |
Organization�(Professional Communication) | Presented in a clear, well-organized table format with distinct sections for each criterion. | Presented in a table format, but the organization could be improved for better clarity. | Presented, but the organization lacks clarity or coherence. | Poorly organized or not presented in a coherent format. |
Lesson 3
House Selection
Teacher Notes & Resources For Lesson: (This lesson may take 2-3 Days)
** Print out the Key housekeeping terms - the Flashcard game is just one idea to make learning some terminology fun, feel free to come up with a more creative way.
** Students can expand the photos to see the photos larger.
** The students will have 4 options, if you want to find other houses, feel free to make some more up.
** Discuss the opportunity to make a profit and discuss the keys to real estate.
Potential Lesson Timers used for pacing
Teacher Page: NOT SHARED WITH STUDENTS
Materials Needed: (1 to 2 Days)
Zillow for the Teacher - Students may not be able to access the
Materials Needed:
Objectives & Success Criteria
Lesson Starter - 15 Key Terms For House Flippers
Activity: House Flipping Terminology Game
Get into groups of 3-4
Make your cards for your group (Each person begin writing a term on the card)
Shuffle your cards and turn them upside down
We will go around the room and each group will select a card from their deck of cards, if your team can define the term, you will get a point.
** You have 5 minutes to study the terms
House flippers typically make use of the 70% rule here, which states that no more than 70% of the after repair value (ARV) of a property should be paid, subtracting the cost of repairs. This calculation helps investors to avoid overpaying for a property
What Is the 70% Rule Formula?
Maximum Offer Price = After Repair Value * 70% – Repair Costs
Students do step 3 on your handout
Example: I will multiply my expected after repair value of $350,00 and multiply it by .70 and subtract what I think my repair costs will be. Let’s assume I need $81,000 in repairs, I can determine what I should pay for my house.
($350,000 * .7) - $81,000 = $164,000
Look for a house in good shape in the same area to determine your ARV, these homes are Comps
If you have your definition of the project and your criteria and constraints, your teacher will assign you to a team, if not you need to complete steps 1 & 2
You have 15 minutes to select your house based on initial cost and photos. Attempt to do some research in the area. Complete Steps 4 & 5 on your handout.
You will find the house info on the following slides, you can expand the photos to see them closer. If you don’t like any of my homes, feel free to find another one, but you may be restricted on what you can do at school. House choices slides for students
Each teammate should be researching a house, you need to work as a TEAM to get this done!!!
| 1-One Story | 2-Two Story | 3-Two story | 4-Split Level Home |
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Square Footage | 1790 sq. ft. | 3048 sq. ft. | 1344 sq. ft. | 587 sq. ft. |
# Bedrooms | 3 | 5 | 3 | 2 |
# Bathrooms | 1.5 | 3 | 2 | 1 |
Year Built | 1958 | 1970 | 1926 | 1932 |
Pool/Spa | No | No - | No | No |
Overall condition | Fixer-upper | Poor | Good | Average |
Known problems | *Electrical problems *Plumbing problems *Older kitchen | *Needs landscaping | *Termite problems *Older bathrooms | *Termite problems *Needs new roof *Older kitchen |
Price | $175,000 | $209,000 | $239,999 | $265,000 |
House 1
House 2
House 3
House 4
What house did you select?
Give it a name - Example “The Cozy Cottage”
What are two major factors that you like about the house?
What would you like to investigate more?
Criteria | 4 - Distinguished | 3 - Proficient | 2 - Developing | 1 -Beginning |
House Selection�(Skilled Professional) | Student selects a house within the given time frame, considering both initial cost and photos, and provides a clear and appropriate name for the house. | Student selects a house within the given time frame, considering either initial cost or photos, and provides a somewhat appropriate name for the house. | Student selects a house, but it may not fully align with the given criteria or fails to provide an appropriate name for the house. | Student fails to select a house within the given time frame or does not consider the given criteria. |
Major Factors Liked (Problem Solving) | Student clearly identifies two major factors that they like about the selected house. | Student identifies one major factor that they like about the selected house. | Student vaguely identifies one major factor or mentions two minor factors about the selected house. | Student fails to identify any major factors or provides irrelevant information. |
Investigation Interest (Knowledgeable Professional) | Student clearly identifies a specific aspect or feature of the house that they would like to investigate further. | Student identifies a general aspect or feature of the house that they would like to investigate further. | Student vaguely identifies an aspect or feature of the house to investigate further or provides a non-specific interest. | Student fails to identify any aspect or feature to investigate further. |
Lesson 4
Does IT MAKE “Cents”
Teacher Notes & Resources For Lesson:
Potential Lesson Timers used for pacing
Teacher Page: NOT SHARED WITH STUDENTS
Materials Needed:
Objectives & Success Criteria
OPEN A New Google Sheet
Type in the information to the right, make sure you type info into the correct cells - Example my house goes in cell A4.
Follow along with the screencast and create your spreadsheet.
Today we need to analyze today to see if your House Selection makes sense. We will use Google Sheets to make our job easy
How many of you know how to use google sheets? IT IS MAGICAL IF YOU HAVE NOT!!
Analyze the costs below (remember to stay within your total $400,000 budget though). Write out you plan and what you play to fix on your house.
Improvement Options | Details | Cost |
Small kitchen remodel | New cabinets, counters and flooring | 20,000 |
Medium Kitchen Remodel | New cabinets, counters and flooring | 30,000 |
Upscale kitchen remodel | New custom cabinets, counters, flooring and appliances | 40,000 |
Remodel 1/2 bathroom (each) | New fixtures, tile and flooring | 6,000 |
Remodel Full Bath | New fixtures, tile, shower or tub and flooring | 20,000 |
Upgrade flooring | Add hardwood flooring and/or new carpet | 8,000 |
Upgrade landscaping | New trees, shrubs, flowers, patio/deck | 10,000 |
Add Pool | Install in-ground pool with patio | 60,000 |
Fix termite damage | Required if the home has this problem | 8,000 |
Fix plumbing issues | Required if the home has this problem | 10,000 |
Fix/upgrade electrical problems | Required if the home has this problem | 8,000 |
Replace roof | Required if the home has this problem | 25,000 |
House Chosen (Number) | Price |
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Improvements to Make | Cost |
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TOTAL COSTS (must be less than $300,000) |
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Look at the Example on the 1st Tab
Next Open up your budget sheet in tab 2 and TYPE your information in the shaded blue area.
| 4 - Distinguished | 3 - Proficient | 2 - Developing | 1 -Beginning |
Analysis and Reflection (Computational Learner) | Student provides a thorough analysis of the house flip using the 70% rule, including clear explanations and logical reasoning. Reflection demonstrates critical thinking and insightful considerations of the implications. | Student provides a satisfactory analysis of the house flip using the 70% rule, including explanations and reasoning, but with some minor gaps or lack of depth. Reflection shows basic thinking and considerations. | Student provides a limited analysis of the house flip using the 70% rule, with vague explanations and weak reasoning. Reflection lacks depth and critical thinking. | Student provides minimal or no analysis of the house flip using the 70% rule, with little or no explanation or reasoning. Reflection is absent or irrelevant. |
Lesson 5
Design Your House
Teacher Notes & Resources For Lesson: (2 Days)
Potential Lesson Timers used for pacing
Teacher Page: NOT SHARED WITH STUDENTS
Materials Needed: www.floorplanner.com
Objectives & Success Criteria
Utilize Floor Planner To:www.floorplanner.com
Design YOUR HOUSE
Now that you have your budget in place, it’s time to design! In this assignment, you will be creating a floor plan for your house that is similar to the description of your house. For example, if you chose a two-story house, your floor plan should be two stories. It should have the correct number of bedrooms and bathrooms too. The rest of the design though is up to you.
You can use www.floorplanner.com, for this project. You will draw the floor plan and then include the furnishings in your home.
Students log into floorplanner.com and use the Google Login - We will work through this intro Tutorial together.
IMPORTANT:
the website is now different from the video demonstrating magic layout. You must enable the magic layout and then choose a style board instead of the theme.
Expectations
1. Floor plan needs to include the main features of the house you chose in this project: same number of bedrooms, same number of bathrooms, same number of stories to the house.
2. Your design should make sense. For example, you need a door to get into rooms, you don’t want to have to walk through a bathroom to get to the kitchen, etc.
3. Make rooms a realistic size. You can’t sleep in a 3’ x 3’ bedroom and none of the houses in this assignment are mansions, so they won’t have 25 rooms or 3-car garages J
4. All rooms include furnishings; kitchen includes cabinets and appliances; bathrooms include all fixtures. If you are using Sketchup, you can use 3D Warehouse for ALL furnishings if you want.
5. Save your file (Sketchup) or take a screenshot of it (using PrtScn key) and paste the result into a Google Document.
Sample Projects
Student Response:
Instructions:
Based on today's activities, briefly explain one key concept or skill that you learned and how you can apply it in real-life situations.
Criteria | 9 or 10 | 7 or 8 | 6 | 5 |
Objective 1 | Student creates a floor plan that accurately includes the main features of the chosen house, meeting all the specified requirements. | Student creates a floor plan that includes most of the main features of the chosen house, but with minor omissions or inaccuracies. | Student creates a floor plan that partially includes the main features of the chosen house, with noticeable omissions or inaccuracies. | Student fails to create a floor plan that includes the main features of the chosen house or deviates significantly from the requirements. |
Objective 2 | Student designs a floor plan that demonstrates a logical flow, with proper room connections and accessibility, considering practicality and functionality. | Student designs a floor plan with generally logical room connections and accessibility, but with some minor issues or inconsistencies. | Student designs a floor plan with limited logical room connections and accessibility, with noticeable issues or inconsistencies. | Student fails to design a floor plan with logical room connections and accessibility, with significant issues or inconsistencies. |
Objective 3 | Student develops rooms of realistic sizes suitable for their intended purposes, considering practical dimensions and avoiding extreme limitations. | Student develops rooms of generally realistic sizes, but with some minor deviations from practical dimensions or slight limitations. | Student develops rooms of limited realistic sizes, with noticeable deviations from practical dimensions or significant limitations. | Student fails to develop rooms of realistic sizes, with significant deviations from practical dimensions or extreme limitations. |
Objective 4 | Student furnishes all rooms appropriately, including necessary items like cabinets, appliances, and fixtures, based on their respective room types. | Student furnishes most rooms appropriately, but with some minor missing or inaccurate items in terms of cabinets, appliances, or fixtures. | Student furnishes only a few rooms appropriately, with noticeable missing or inaccurate items in terms of cabinets, appliances, or fixtures. | Student fails to furnish most or all rooms appropriately, with significant missing or inaccurate items in terms of cabinets, appliances, or fixtures. |
Lesson 6
SELL - IT
Teacher Notes & Resources For Lesson: (Links for Student Facing Schoology Assignments)�
Potential Lesson Timers used for pacing
Teacher Page: NOT SHARED WITH STUDENTS
Materials Needed: Depending on the path you take you may needed craft material, baking material or Sewing
We will begin to market our house to sell it, lets watch some tips to get it ready for an open house, what else do you think you could do?
Objectives & Success Criteria
Scan through the article, can you think of a snack that may help you sell your home?
Is there a special food or snack that is distinct to the area?
Marketing your Property
** You are a little short with your advertising budget, so you have decided to create a facebook post about your property. Use the template to create your post.
We are doing this as a class today and here is your time frame
Cover Page - 10 Minutes
House Description and Features - 10 Minutes
Add 6 photos with a Title - 10 Minutes
Create a Community page - Sell the Schools, Parks and things to do - You will have 20 minutes tomorrow to complete this page and polish your first three.
TITLE
My House
Features
Description
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Home
Photos
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Home
Community Highlights
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Home
Please answer the following questions to indicate your progress on today's activity:
Did you complete the Cover Page within the given time of 10 minutes?
Rate your Cover Page on a scale of 1 to 5 (1 being poor, 5 being excellent):
Did you complete the House Description and Features section within the given time of 10 minutes?
Rate your House Description and Features section on a scale of 1 to 5:
Did you add 6 photos with titles within the given time of 10 minutes?
Rate your photo selection and titles on a scale of 1 to 5:
Were you able to start working on the Community Page during the allotted time of 20 minutes?
Rate your progress on the Community Page on a scale of 1 to 5:
Criteria | Points |
Cover Page (10 minutes) | /10 |
- Creativity and visual appeal | |
- Clear representation of the house being flipped | |
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House Description and Features (10 minutes) | /10 |
- Comprehensive and accurate description of the house | |
- Highlighting key features and selling points | |
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Add 6 Photos with a Title (10 minutes) | /10 |
- High-quality and well-composed photos | |
- Relevant titles that enhance the visual experience | |
| |
Community Page (20 minutes) | /10 |
- Inclusion of important community information | |
(schools, parks, attractions, etc.) | |
- Clear and persuasive content to attract buyers | |
You can now add your own twist by having the students create a treat or making something to accent the entryway of their house. You can shut it down and go onto another project. The choice is your.
Here are some simple ideas of things middle school students could do at the end of this project: