By James Hall
Nowadays, many seniors are choosing to continue working after they retire. People who work after retirement tend to have more social opportunities and remain more active, as well as keep building their wealth. If you have an interest in real estate, consider the house-flipping business.
Understanding House Flipping
When it comes to house flipping, you need to limit your risks but maximize your returns. Research the value of a potential purchase carefully. You need to know not only what it costs to buy, but what you can potentially sell it for. You should not pay more than 70% of the value you plan to sell it for.
Before you purchase a home, ensure you can afford it. The government provides various resources for homeowners. All homes require an inspection before you put money down or agree to purchase. You need to know the property’s history and understand the ins and outs of the problems. Some issues may remain hidden without a proper inspection. Such hidden problems can become more significant issues down the road if you have to spend more money or time on the house than you planned for. When it comes to house-flipping, you do not want to sit with a property for too long.
Successful house-flippers know the types of renovations that can add value to a home. Once you reach retirement age, you may have enough experience with real estate to understand what buyers look for and which renovations are worth the time and effort. You do not always have to perform significant overhauls, but some major higher-value renovations may be worth it:
- Bathroom remodels
- Attic and basement conversions
- Exterior updates
- Landscaping
- Kitchen remodels
To find the right homes to flip, look at small houses in good neighborhoods. A small, well-priced home in a reputable neighborhood sells faster than more expensive, larger homes. Keep an eye out for homes with less landscaping. Curb appeal is one of the most straightforward problems to fix.
Building Your Business
To make house flipping into a genuine business, you need to think about what it takes to build your company. According to the experts, you should begin with a business plan. Start with putting into words your company’s objective. In the case of house-flipping, your objective is generally to improve homes to sell at a profit.
Your business structure is another important detail to determine. Many business owners choose a limited liability company because of its asset protection and tax advantages. You also need to consider the operating agreement. This document states how you plan to run the business, explaining your decision-making processes, funding, and other key points.
As your business grows, you’ll almost certainly take on contractors and possibly even staff. When you do, invest in tools to ensure that you are getting payroll done fast and accurately. Your reputation as a business is at stake, so be sure to protect it.
Creating an Impression
Like any business, you need to create an impression on potential customers. Often, the more genuine you are, the more people trust you. One of the most critical aspects of the real estate business is networking with others. Develop a brand for yourself.
Once you have the home ready to sell, do not try to market on your own. To create a positive first impression, work with a professional in real estate. They have the knowledge to gauge what others are selling similar homes for and whether you can expect a profit soon.
Working in your retirement years has numerous benefits. Not only can house-flipping deliver extra income, but it gives you purpose. To help people afford nice houses, consider flipping fixer-uppers and selling them to those who need a home.
Roslyn Lash, the Money Elevation Coach, offers online financial coaching as well as housing consulting. For more information, please visit her website or contact her today!
