If you love watching television home improvement shows and want to try house flipping for yourself, retirement is a great time to start. If done correctly, you can make some serious cash and feel good about breathing life into depressed homes. There are many communities to choose from, including age-restricted retirement communities. Let these helpful tips guide you to starting your own house flipping business as a senior.
Set Up Your Business Structure
You’ve worked hard over the years for your retirement savings. It’s essential to select a business structure for your new business that protects your personal assets. A limited liability corporation does that and offers flexibility and tax advantages.
After you set up your LLC, you need a registered agent to manage the legal documents for your company. Of course, you could do this yourself if you have experience. However, you might consider the advantages of hiring a registered agent service instead. That way, you are freed from being available during regular business hours to handle legal matters. A service can also save you from costly penalties by offering compliance reminders so you don’t forget to file a document on time.
Invest in Business Tools
As you build your business, you’ll need tools at your disposal to help you manage. An important application to consider early on is how to manage your payroll. Payroll management software allows you to easily track time, withhold taxes, and make direct deposits in a fast, consistent workflow. It ensures you won’t be stuck working on admin tasks for one day every pay period. It also has a mobile component for working on the go, and the software can scale with your business as it grows.
Line Up Funding for Your Flip
If you have the extra money in your retirement savings, decide how much you want to use to finance your first property. Self-funding keeps you from paying interest on a loan until the remodeled home sells.
You can select from various financing options if you need help with the funding or don’t want to risk your savings. These include investment property lines of credit, a hard money loan, or a cash-out refinance loan.
Select the Right Property
Experienced flippers advise you to look in the best neighborhood you can afford and find the worst or cheapest house as your first project. Calculate the cost of the home, your estimated renovation budget, and how much your home sales and staging fees will be. If you took out a loan, allow for holding costs if your flipped home doesn’t sell right away. Pad that amount for the inevitable, unexpected expenses that pop up. Be sure to purchase a property that fits within your budgeted amount for your first project.
Hire a Reputable Contractor for Your Flip
Hiring a reputable general contractor is a wise idea as this professional knows the building restrictions, local codes, and permits needed for the project. A contractor also has connections with licensed workers and can get them started on your house’s remodeling tasks quicker than you can yourself.
Take on the Right Projects
Apart from ensuring the house is safely livable, it’s wise to limit your work on the home to those projects that earn a significant return on investment. Kitchen remodeling, for example, is a practical necessity in most houses to be flipped. This can include several tasks, including repainting the cabinets, installing new hardware, replacing outdated appliances, installing a range hood for the stove, building an island, and more. Managing your budget when undertaking remodeling projects is critical to house flipping success.
Boost the Curb Appeal
Save some money to remodel the exterior of the home as well. Real estate experts reveal properties with curb appeal sell for 7% more than similar homes with lackluster exteriors. If needed, paint the house, install or repair the landscaping, and add pots of colorful flowers and some comfortable chairs to the front porch.
Hire a Real Estate Agent
Resist the urge to sell your flipped house yourself. An experienced agent knows how to market your property to make the right first impression on buyers. An agent is an expert at listing the home for the right price and knows how to spot serious buyers from casual lookers.
Retirement is a great time to begin your own house flipping business. Following these tips can help you transition successfully into this lucrative profession. Once your house is ready, trust the experts at Realty Executives to market and sell your house for maximum value.