Today's guest article, How to Be a Successful Senior House Flipper, is written by the owner of the financial help website "Ted Knows Money". Ted James specializes in private, one-on-one coaching and counselling sessions to help people take control of their finances.
Learn more About Ted James.
House flipping can be an excellent strategy to ensure an income in retirement. However, as with any business, there are crucial steps you need to take to be successful. Finding the right property, making the appropriate renovations to boost your home’s value and sellability, and knowing how to sell your home are things you need to consider. Today, Money Solutions Online offers some tips and resources to help you make money from flipping houses as a retiree.
Finding your first property can be tricky, but researching can save you time and effort down the road. Try searching on popular real estate sites for properties within your price range located in relatively up-and-coming neighborhoods. Don’t be afraid to drive around town — you might find something unexpected. Alternatively, there are several popular apps designed for real estate searches.
The Renovation Process
After you find a good house and make an offer, you’ll need to renovate it before you can sell it. The renovation process involves more than just fixing things, like leaky faucets. It involves updating and possibly even redesigning your house so that it appeals to today’s buyers.
Ensure your renovations are worth the cost by checking out what other homes in your area have sold for. If you can add value through renovations, then go for it. While some things you’ll likely be able to tackle yourself, a quality general contractor will be able to handle the more difficult tasks like updating counters and cabinets, or completely making over a bathroom.
The 70% Rule
The 70% rule helps you determine how much you should spend. As a rule, 70% of the after-repair value minus the cost of renovations should be the maximum purchase price for your property. You can estimate your home’s after-repair value by comparing it with similar homes in your area that recently sold. And don’t forget about costs such as taxes and insurance during construction and real estate agent fees when selling.
Selling Your Home
Before you can sell your home, you need to make it appealing and livable. These days, there are many options available for updating your living space. Find one that fits your budget while still bringing value and appeal. A real estate agent helps you get the best price possible and sell your home quickly. They also have experience in knowing what updates will be most attractive to potential buyers.
Creating a Business
To start any business, you will need a business plan and must consider how you’ll structure your company. Because of the tax benefits and asset protection, most business owners choose to form an LLC. Other elements on the checklist should also be considered, such as an operating agreement, not to mention bookkeeping. For the latter, payroll software designed for small businesses is ideal, and will make your life a lot easier come tax time.
Planning and Determination
It takes some time and effort to learn how to flip houses. However, it can also be extremely lucrative. With some planning and determination, you can become an expert at it in no time!
Money Solutions Online can help you become spiritually and financially successful by providing Faith-based products, financial resources, and affordable web development. Reach out today to get started!
Image via Pexels