You’re never too old for a new opportunity. If you have a career in construction or simply love to DIY, flipping houses can be a lucrative venture after retirement. Before you jump in, there are several things you need to take into consideration, such as funding, locating homes, renovations, and sales.
Here are some tips from CrownPointe Communities for getting started.
Starting Your Business
One of the first things to consider is the business itself. This isn’t just a chance to fix up homes; it’s a money-making opportunity. Consider protecting yourself from some liability by setting up an LLC. This may provide certain tax benefits as well. Forming an LLC is simple and affordable to do on your own, or use an online business formation service to navigate the rules in different states.
Next, take steps to market and get the word out about your business. To get an edge over the competition, use this free banner creator to create an eye-catching design, then post your listing via social media. You should also create your own website and post your banners there, as well.
Unless you plan on doing every bit of work yourself, you’re going to need to hire some help. When it comes time to pay your laborers, use a payroll calculator to make sure everything is correct. This will help you account for all withholdings and taxes, even making adjustments for different state taxes as well. It also makes the proper calculations when distinguishing between hourly and salaried work.
Funding Your Flips
If you have a lump sum of cash, this is the best source of funds for purchasing a home to flip. It reduces your need to hurry through the flipping process in an effort to avoid extra mortgage payments. It also helps you avoid interest and other fees associated with mortgages.
Most beginners need a mortgage at least for the first few flips. You can get the best financing deal possible by ensuring your credit score is high and your credit report is up to date. Getting preapproved by a lender helps you understand how much you can afford to spend to purchase a home for your project.
Finding the Right Home to Renovate
The ideal home for flipping isn’t the same as your ideal home to live in. Look for a home that has good bones and doesn’t require any structural repairs. Avoid homes needing expensive roof replacements and those with mold issues. Particularly for your first few flips, look for a home that needs simple renovations. These sorts of fixes require minimal time and monetary input while providing a large return when selling the home.
You’ll probably also want to update the range hood and appliances in an older kitchen or retile the floor and install a new sink in the bathrooms. Work in kitchens and bathrooms is common – and expected. In general, you’ll see your biggest return when focusing on updating the main living areas, replacing flooring, and adding a fresh coat of paint in a neutral palette.
As far as location, the best neighborhoods to search are those that have seniors moving out and younger families moving in, areas where new construction is starting to take place, or popular areas where rentals are becoming hard to find.
Selling the New Property
When the renovations are completed, the work isn’t over. When selling the property, you must consider many things. Choosing a pricing strategy is one of the most important. Listing at a high price conveys the impression the home is high-quality, but it may take longer to sell. A lower price indicates a good deal and usually a quick sale. Make sure the prices are comparable to other homes in the area, and get your listing out into the world, so the future homeowner sees it.
Make Money Flipping Homes
Flipping homes can be fun and profitable, but it’s also a risky business. By following the tips above and doing your research every step along the way, this can be a successful opportunity for seniors.
CrownPointe Communities owns and operates seven assisted living campuses (six in Indiana and one in Michigan); along with senior condominium campuses in Anderson, Yorktown, and Muncie, Indiana. Call (765) 759-0230.