For many people, their senior years are some of their most vibrant and satisfying, as they are finally in a position to pursue the things they want.
If you’ve long nursed a dream about having a successful business of your own in retirement, house-flipping may be just the ticket. Check out this guide to successful flipping to see if it’s right for you.
The Silver Life is an online community of active silver surfers. They are a great resource for learning about issues that are specific to seniors who want to make the most of their lives. Here, they bring you tips on how you can start your own successful house flipping business.
Most people need to take out loans to purchase the properties they find. It can be tricky to find lenders willing to lend to inexperienced house-flippers, so many opt for hard money loans, which usually have very short terms and higher interest rates. One benefit of hard money loans is that the amount you take out is the predicted value of the house after it’s been repaired.
Finding Houses to Flip
Per The Motley Fool, an important part of successfully flipping houses for a living is being able to consistently find properties that are good investments you can earn from. One way to do this is to build relationships with local realtors. Real estate offices are the first to know when homes are going up for sale or auction, and if you have a connection to agents, you’ll be able to get information about houses as soon as they become available.
If you can’t work with a real estate agent, try to focus on location first. Renovating houses in run-down areas can be like throwing money away; many people will not want to live in those communities and you will likely struggle to turn the profit that a more appealing locale could bring.
Inspecting for Costly Repairs
Some repairs cost more than others, and houses that have expensive issues aren’t good investments for flipping. Be on the lookout for homes that show signs of needing serious repairs such as new roofs or pest management. If you see cracks in the foundation or walls, those can indicate foundation issues that can cost over $10,000 to repair. Plumbing and electrical issues can likewise be incredibly costly, so look out for signs of water damage or mold present.
Making Small Changes for Big Returns
Big impacts can be made with savvy small moves. Painting kitchen cabinets and replacing hardware are inexpensive ways to upgrade a kitchen quickly. Installing outdoor lighting can have a dramatic impact for a small investment. Even a coat of paint can dramatically improve the appearance of a room.
Regardless of how inexpensive you hope a renovation will be, it’s smart to add 20% to your estimate. That way, when unexpected expenses arise, you’re less likely to go over budget when covering them.
Knowing When a Pro Is Needed
Many aspects of house-flipping you may be able to do yourself: cleaning, painting, and small repair jobs. For more serious renovations, though, it’s smarter to hire professionals rather than risk trying to fix something yourself and making major mistakes that eat up your time and budget. When you’re renovating a house, you’re responsible for paying not only your loan, the expenses of renovating, and utilities, but any taxes and other community fees that go along with it. The more time you waste trying to figure out how to do complicated tasks for yourself, the less money you make on a flip.
Selling Your Refurbished Home
You will probably use an agent to sell your house, but that doesn’t mean you should leave all the work to them. They have lots of houses to sell; you have just one. If you have a social media presence, that’s a great way to market your house. Aside from just posting on your page, take out an ad, too. Facebook’s potential audience is over 2 billion people! You can use this Facebook ad maker that is both free and easy to use. You can customize it to suit your needs quickly and professionally.
Taking out an ad in magazines geared towards senior living is another excellent way to advertise your home. Place an ad for your home in The Silver Life, to reach the demographic that could be the perfect fit for your property.
If flipping houses is a dream of yours, it’s time to make that dream a reality. Do your research and make smart moves, get help when you need it, and you’ll be on your way to success in no time.