5 Ways House Flipping Can Be Lucrative for Seniors
5 Ways House Flipping Can Be Lucrative for Seniors
If you’re a senior wanting to expand your business opportunities, consider house flipping. It can be fun and profitable even if you’re not knowledgeable about real estate. Look at five reasons seniors such as actress Diane Keaton love this line of work.
- Houses in Beach Cities Command Attractive Prices
Many beach-adjacent homes sell for a premium. To make money flipping houses, you find low-priced properties that need work, whether it’s a little work or a lot, and complete it at a smart price. You’re then able to resell the house for more than you paid for the original purchase plus renovations. In general, flipping one house costs the original purchase price plus 10% of what you paid.
- Knowledgeable Partners and Contractors Are Abundant
A great team minimizes the risks if you know little about real estate or are unsure about your ability to perform the labors involved in renovating. Many times, seniors have money, while their potential business partners do not. What their partners have, however, are skills and know-how. If you have the capital to outright buy homes or secure a mortgage but need assistance with the particulars, you can help each other out.
Skilled contractors will be able to take on any project you want completed at your property, such as adding an outdoor kitchen. If you envision future owners wanting an outdoor space for entertaining guests, then having a patio area complete with a sink, refrigerator, stove, and range hood will provide them a great environment for hosting. Unique features like this can be a great way to get the attention of potential buyers.
- Real Estate Agents Offer Helpful Guidance
Experienced real estate agents like Carol Gilles can guide you in finding perfect properties and determining the best renovations to make. They can also help you establish relationships with mortgage companies. Last but not least, when you’re ready to sell the house you flipped, agents work to get the job done. Good agents are in tune with the housing market and are among the first to hear about low-priced properties that would shine after some work and polish. Establish relationships with a few good agents, and you could be well on your way to a profitable career in house flipping.
- Forming Your Business as an LLC Protects Your Personal Assets
House flipping, as is true for any business venture, comes with risks. Those associated with real estate include hidden issues with a house that go undiscovered by an inexperienced team (one reason it’s so important to work with a trained team!). Forming your business as an LLC separates your personal and professional ventures and ensures that house flipping won’t put other parts of your life at risk. You can form an LLC online with services that make it simple and cost-effective.
- You Can Do as Little or As Much Work as You Like
House-flipping can be as hands-on as you want it to be. You don’t have to know much to get started, either. Mostly, you just have to put together a terrific team and learn as you work with each member. For instance, when you go out with real estate agents to identify potential properties, you learn about telltale signs of structural damage, which is potentially expensive and often not worth the trouble. You also learn how to choose between two similar properties to determine the one that will bring in more money based on location and other factors. As you gain more experience, you can take on more of the work yourself if you prefer.
If you plan on paying others to take on the work, then getting payroll done will be a principal concern. Good payroll software makes things simple by withholding taxes, tracking worker time, and generating direct deposits in one system. This can save you time and headaches, leaving you with fewer worries in retirement.
To get started on house flipping, contact an experienced real estate agent like Carol Gilles to help you source potential homes to flip and to help get them sold when work is completed. With the right tips and knowledge, you can enjoy turning a profit in your golden years.
Special thanks to Monica Smith of recoveringworks.org
Before you choose a home to flip contact Realtor Carol Gilles, of The RealEstate Group. She can help you with market value on the finished home. With over 40 years experience helping buyers and sellers, let Carol & her expertise work with you. Call Carol at 310-864-9738 or email her at Carol@CarolGilles.com.