Many seniors take on side projects or volunteer to stay busy during retirement. But others choose a different route: entrepreneurship. If you have the entrepreneurial itch, consider starting side career flipping houses. You likely already have an abundance of knowledge about homes, and house flipping can be a rewarding, lucrative money-making business. But it can also be a money pit for those who enter the fray without the necessary knowledge.
Today, Gayle Probst shares a few tips on how to get into house flipping and tips for your success.
Pick the Perfect Property
Finding the right property is the key to success with house flipping. Make sure to avoid properties with structural damage, weak foundations, and bad plumbing, which are sure to increase costs (and headaches). The perfect house shouldn’t need much more than some fresh paint, new flooring, landscaping, and other quick, simple fixups to make it shine.
Financing Your Expenses
There are numerous financing options available, but it’s best to pay in cash if you can. This way, you can avoid hefty fees and interest. If you do finance through a loan, do thorough research before you decide. Each financing option has varying requirements, interest rates, and fees, so you will want to ensure you choose the appropriate option.
Once you have financing in place and you have purchased the house, be sure to select your renovation projects carefully. One project that’s a safe bet is fixing up the kitchen. It’s a good idea to refresh the appliances, add or upgrade the range hood to the kitchen, refinish the cabinets, and update the hardware. Your prospective buyers will notice and appreciate an up-to-date kitchen.
Use Project Management and Financial Tools
If you want to make a profit with house flipping, it’s essential to stay organized and stay on top of your business’s financial health. The right business accounting software can help you streamline processes and build your profits.
When issuing checks and invoices, be clear and consistent in your branding by including your business’s logo. This way, the recipients will know at a glance to whom they owe money. If you don’t quite have the room in your budget for a graphic designer, online logo design tools can help you create a great image using premade templates.
Another important digital tool for your business’s success is project management software. Not only are these programs imperative for organizing your business, but they also keep you connected to your crew. These online project management apps, like AirTable, Asana, and Slack, can sync across all your devices and connect you to your business wherever you are.
Show Off on Social Media
You don’t actually benefit from flipping houses until you sell for a profit, so you need to spend some energy generating buzz for your properties on social media. Share clear, high quality images on Facebook and Instagram in particular, since this is a great way to reach a massive audience of potential buys and let them know what you’re all about.
Think About the Long Term
Another thing you’ll have to decide is whether you’d prefer to rent or sell your property. Both options have their pros and cons. Selling could mean a quicker payout, for instance, but renting could mean more money in the long run. But renting also means the additional responsibility of managing and maintaining the property. If you decide to rent, it’s a good idea to hire a property manager to help you handle the logistics and keep up with repairs.
If you decide that flipping houses is the perfect gig for you, you may want to make it a full time pursuit! While starting a new company comes with certain challenges and risks, it can also be extremely rewarding – in more ways than one. Consider forming an LLC in California to protect your personal assets and take advantage of great tax benefits. It’s a simple five-step process that you can do on your own, or you can work with a formation service who will file everything for you.
Is House Flipping Your Next Adventure?
Flipping houses isn’t for everyone, but for those willing to put in the time, money, and patience, it can be a rewarding, lucrative experience. If you pick the right house, make strategic upgrades, thoroughly research financing options, and use financial tools and project management applications, you can turn your dream of flipping houses into a reality!
For help finding the Palos Verdes home of your dreams, contact real estate agent Gayle Probst today!