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If you’re like most seniors, you’ve accumulated quite a bit of money and have spent many years either saving or investing it. You can use that money to invest in real estate and help provide yourself with an income stream once you retire through your own home-flipping business, even if it’s just as simple as flipping one property yourself. Below are some great tips from Technology Revolution Lab on how seniors can get into the house-flipping business and experience success.
Finding the Right Fixer-Upper
You can find a fixer-upper anywhere, but to make sure you’re getting a home in the area that’s worth your while, choose a place with potential. Determine whether enough other homes in the area have similar characteristics and values to make it possible for you to capitalize on value appreciation. Check out how many similar homes were purchased and what they sold for.
Finding a Mortgage
If you’re planning to flip a house, you probably don’t have the entire amount in your own cash reserves, so it may be worth going after a mortgage. To qualify, you’re likely to need some 20 percent or more for a down payment, enough income to cover carrying costs if renovations run over budget, good credit, and low-risk investments that prove you can handle losses with ease.
Renovations That Boost Value
As a home flipper, you may want to consider making some upgrades to boost your home’s value. After all, your ultimate goal is to make money — so don’t leave money on the table. Common renovations that improve resale value include new paint jobs, remodeled kitchens and bathrooms, upgraded flooring materials, and upgraded HVAC systems.
Before spending big bucks on renovations, research how much these changes can impact resale value in your area. If you’re planning on doing the work yourself, check this out: Takeoff software can eliminate common mistakes that crop up going from plan to reality. Every delay you can prevent means more profit for you.
Selling the Home
The goal of every house flipper is to make a profit, but you can’t sell a property if it doesn’t look presentable. Hire a professional home stager or decorator to give your home that just-right look and feel. Give your house a makeover by taking care of minor repairs and renovations, including repairing light fixtures and upgrading appliances. Applying a new coat of paint can also help you spruce up your property before you put it on sale.
Even if you plan on doing most of the renovation work yourself, you need a real estate agent to find a buyer and handle the negotiations and paperwork. Agents charge a commission for each transaction — so ask upfront about their fees, so you know how that impacts your budget. Many agents offer discounted commissions during slow times, such as winter or off-peak seasons.
Forming Your Business
There are many reasons business owners decide to form an LLC, but the most popular reason is the tax benefits and protection of personal assets this type of business structure affords. You must also establish an operating agreement that specifies how you control all aspects of your business.
As your business gets up and running, explore software that can make your job easier. For example, check out small business payroll software once you take on employees. It will make payroll processing much quicker. Also try out a logo maker instead of hiring a graphic designer. You can save a lot of money and still have a professional logo.
Design a Business Card
A business card is a powerful promotional tool, especially for a house-flipping business. It can help you establish a professional image and make a memorable first impression. By including your name, contact information, and a brief description of your services, a well-designed business card can create a lasting impact on potential clients. Additionally, business cards can be distributed easily in networking events, open houses, or even to people you meet casually. To make the most of this marketing resource, consider using an online tool to create your own business card design. There are many user-friendly options that offer customizable templates and allow you to add your own branding elements. By designing your own cards, you can ensure they represent your business accurately and stand out from the competition.
In an evolving real estate industry, house flipping can prove to be a lucrative option for seniors who are seeking to supplement their retirement earnings. While undertaking such a venture may require considerable effort and perseverance, the potential financial rewards can be significant. With the right strategy, coupled with meticulous planning, the experience of flipping a house can be both financially rewarding and satisfying for seniors in their retirement. It is important to remember that success in house flipping is often realized through patience, persistence, and a willingness to learn from mistakes.