If you’re a senior looking to start a part-time career after retirement, then house flipping may be the answer. This is a chance to scout out older properties in the area and transform them into beautiful homes that you can then renovate and rent out so you can make some extra money on the side. REsimpli understands that it’s important for seniors to take on new projects so we’ve put together some tips to help you become a successful house flipper.
Before you can jump into the house flipping game, you’ll need to think about starting a new company and how you want to set up your new business. Many people decide to approach this job by simply buying one house at a time, while others want to turn this into a full-fledged company which may involve flipping multiple homes at once. If you do, consider starting a limited liability corporation.
An LLC is a business structure that will ensure that your affairs are always in order and that you are in full compliance with state guidelines. On top of that, you will also enjoy many advantages, including breaks during tax time and less paperwork. It is a good idea if you decide to get very serious about house flipping.
Seniors looking to find their first house to flip can consider speaking to a real estate agent who can take the guesswork out of the equation. Your agent will know the best places to find flippable houses and they will also be able to negotiate contracts and ensure that you are getting the best deal without getting into legal hot water.
Another option is to look online for local estate and foreclosure auctions where homes that are no longer occupied are selling for great prices. You will need to bid on these homes, so in order to make the best offer, do your research ahead of time so you go in prepared.
Lastly, buying a fixer-upper can be beneficial, as it usually comes with more flexible terms than the typical real estate transaction, such as no repairs needed before closing. Additionally, it is possible to purchase a fixer-upper home at a discounted rate. However, it is important to do your due diligence and research the area thoroughly in order to ensure you get a good deal on that property.
Before signing any paperwork, inspect the condition of any potential property firsthand and also make sure that all necessary permits and licenses are up-to-date for renovation or resale purposes. Once you have taken all of these considerations into account, buying a fixer-upper could be an attractive option for your real estate portfolio.
The best-case scenario is to find an inexpensive house that you can buy with cash you have in the bank. In many cases, these homes will need a lot of work, but they will cost less upfront. If you don’t have a lot of cash on hand, then you may have to take out a bank loan.
Before you go in for a loan, you will need to do your research to determine exactly how much you want to spend on a new house and how much all of the repairs will cost. When you go to the bank, mention that you are planning to flip the house because many lenders will cut you a deal since they know you intend to pay the loan back when you sell, which may happen faster than it would with traditional home buyers.
In addition to fixing the damage in an existing house, it is also a good idea to make a few upgrades that could get new buyers more excited to buy or rent the property. Since, as The Guardian notes, many people are interested in sustainability these days, energy-efficient upgrades like LED lighting and smart appliances could bring in a large audience.
Moving.com points out that it is also a good idea to work on the curb appeal of the home since the exterior is the first thing that potential buyers will see and it will get them in the door. When beautifying the outside of the home, make sure to cut the grass and maintain the trees and shrubs on the property. You should also give the front door a clean coat of paint, reseal the driveway, and repair any missing siding on the outer walls.
Flipping a house is no easy task. Many people may be under the false impression that they can do it all on their own. The truth is, a certain level of expertise and skill are often needed in order to maximize any profits or simply save time. This is especially true regarding HVAC work, which requires specialized knowledge and resources. For this reason, it’s important to know your limitations and hire professionals for specific tasks in order to get the job done correctly and efficiently.
Professionals have experience in diagnosing and repairing everything from ductwork issues to furnaces that won’t turn on, so enlisting their help can prevent a minor repair from turning into an expensive replacement job while preventing potentially dangerous situations such as gas leaks and CO2 buildup. Knowing when to hire pros is definitely worth the peace of mind.
Once your house has been restored and you are ready to sell, you can turn to your real estate agent who can get your property on the market and find qualified buyers. You can also go back to the real estate auction which is a good idea if you are looking to sell the home in a hurry. In either case, make sure that you have a minimum cost that you are willing to accept and don’t compromise.
As you can see, the home-flipping business is relatively straightforward. It just takes a little work, patience, and dedication. But if you’re a senior looking for extra income, including flipping a fixer-upper, this is a great place to start!
REsimpli is a all-in-one real estate CRM software that requires no customization, empowering you with real-time data to help you make better decisions which means higher net profit. Contact us today for more info! (619) 786-3482
