A House Flipping Business Can Be Fulfilling and Profitable During Your Senior Years
If you are a fan of home renovation and house-flipping television shows, you may have wondered if it’s too late for you to join in on the action. The good news is that it’s never too late. Seniors are uniquely qualified to flip homes because they have the wisdom that comes with experience and the extra free time that comes with retirement. If this type of work appeals to you, Meade’s PC Repair Shop has a few steps that can get you started.
Prepare Your Finances
Unless you have excess money you want to invest, the house flipping business will require you to find funding. Most often, financing will come from a loan. By preparing in advance, Bankrate notes that you can search for an institution that offers favorable rates and conditions while also making sure you will be viewed as an excellent loan candidate when the time comes.
Early in the process, make sure your credit rating is as high as possible. An excellent score not only qualifies you for a bigger loan amount but also helps you get a better rate. Apply for a free credit score and quickly address any issues or errors you discover.
Next, prepare a budget. Take into account:
- Current expenses, including outstanding and expected bills, debt repayment, and average living expenses.
- Current income, including pension money, Social Security income, required minimum distributions from retirement accounts, and any other streams of revenue.
- Projected expenses for flipping, including home purchase and rehabilitation costs. The ideal fixer-upper to purchase needs only superficial updates, like new coats of paint and replacing outdated appliances, but that’s always the case.
- Rehab costs may include projects that are above and beyond the DIY scope, such as window repair or replacement; finding and hiring home window repair companies near you, for example, is easy with Angi, where you can read up on customer reviews before making the call.
Begin the Search
When you have a budget, it’s easier to target your search. If your budget is limited, Reseau Sara points out that foreclosures and distressed properties may be your best options. It’s also helpful to target your search in up-and-coming neighborhoods. If you have the flexibility to flip homes anywhere, statistics show that Virginia can offer above 63 percent in ROI.
Additionally, search for homes that are solidly built but suffer from superficial features that can turn off buyers. For example, a house with an ugly paint job and an overgrown yard can be an easy project that won’t cost much money. Conversely, a property with structural damage and a leaky roof may prove to be more than you bargained for in terms of time and renovations costs.
Streamline Your Business
The profit margin from flipping homes is dependent on how quickly you can complete the process. The longer you take to buy, rehab, and sell, the lower your profits will be.
To ensure a quick turnaround, partner with a contractor and his team who can work with you consistently. Not only will most contractors welcome the steady income, but the arrangement benefits you, as well:
- Ensures you have an expert on hand to help you evaluate homes
- Allows you to benefit from lower and predictable labor prices
- Ensures you have a consistent team in place to avoid delays
- Provides a valuable second opinion when you create a timeline and budget for a project
If you go this route, use an online payroll service to assist. The service can track employee hours, calculate withholdings, schedule direct deposits, and file necessary tax documents. Of course, you’ll need a fast and reliable computer to run all your software, so it’s a good idea to get a check-up from professionals like Meade’s PC Repair Shop to make sure your devices are up to the task.
Next, an online formation service can help you quickly and affordably file as a limited liability company. LLC status is advantageous because it protects your personal assets from liability and gives you flexibility during tax season.
Flipping homes may be the perfect venture for your senior years. With proper planning and strategy, it can be both fulfilling and profitable during your golden years.
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