How to Have Success Flipping Houses in Your Golden Years

According to data, about 46% of seniors intend to work part-time, and 18% intend to work full-time beyond the age of 70. Some seniors choose to continue working to supplement their income. Others, pursue work as a way to stay busy or pursue a passion. Whatever the reason, flipping houses can be a viable income opportunity for many seniors.

Set Up Your Business

You can start buying and selling houses and report the income on your personal income tax return. However, it is better to establish a business that is separate from yourself. Steps you must take include choosing a business name, creating a business plan, creating a marketing plan, and choosing a business structure. Many business owners choose to form their businesses as limited liability companies because of the tax advantages and protection for their personal assets. Simplify the process of getting an LLC by working with a formation service.

Find the Right Property

Once you have your business ready to go, find the right property to flip. Work with a local real estate agent who will be knowledgeable about local homes and help you identify properties that are good investments.

Consider working with wholesalers who specialize in finding rehab properties and then working with house flippers to make the sale. Working with a wholesaler may cost you more money upfront, but the time you save identifying properties can save you money in the long run.

Obtain Financing

Because house flipping often involves purchasing homes that need significant repairs or upgrades, the cost to buy these homes is usually higher than a house you plan to live in. Unfortunately, getting financing is also more difficult because banks view homes that are going to be flipped as riskier investments. Some may not be willing to loan money to an inexperienced flipper at all. Others charge higher fees and interest rates.

Many flippers utilize hard money loans. These are short-term loans that are based on the value of the home after repairs are made. Taking out a hard money loan provides you with some extra money to cover the cost of renovations and other expenses.

Make the Right Renovations

The way most house flippers make money is to purchase a home that is being sold for a lower purchase price because it needs repairs or renovations. The flipper fixes up the house and then sells it for a higher price. To make money, you must choose renovations that increase the value of the home by more than they cost. 

Study other homes for sale in the area and make note of the features the homes that sell the fastest have. Focus on improving the home’s curb appeal:

  • Wash the siding
  • Paint the trim
  • Make cosmetic repairs
  • Replace exterior hardware
  • Install outdoor lighting
  • Add an outdoor range hood if there’s an outdoor kitchen
  • Plant flowers and plants
  • Add shutters

Sell Your House

Once you have the home spruced up, it is time to sell. Enlist your real estate agent’s help. If you need to make a quick sale, consider a real estate auction. Explore home prices in your area to get an idea how much you can make from a sale. 

If you have an interest in buying and selling property and you are willing to take the risk, flipping houses can be a good way to make money in your retirement years. Register your business, find the right property, get financing, make upgrades buyers love, and then sell your home. Once you get the hang of it, flipping homes can be profitable and fun.

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