How Seniors Can Develop a Successful House Flipping Business

How Seniors Can Develop a Successful House Flipping Business

by Tina Martin

Whether you are switching fields or looking for a way to earn some money after retirement, fixing and flipping houses can be a profitable business venture for seniors. While some home improvement skills might be useful, you don't have to be a pro to make profitable investments in fixer-uppers. You do have to know how to manage your money and time wisely, though. If you think you might have the skills needed to start your own house flipping business, here’s what you need to know.

Whether you are buying or thinking of selling in New Hampshire or Seacoast Maine, it pays to have an experienced professional in your corner. Partner with the real estate pros at 207 Prime Properties. Call (207) 646-2223 or complete this form.

Covering the Expenses
Unless you have a sizable amount of money stashed away, you will likely need to apply for a loan from a bank or another financer. There are a few things you can do to increase your chances of securing an affordable loan. Unless it’s already excellent, you should work on improving your credit score. You can check your credit score online and resolve any outstanding debts or other issues.

Next, you will need to create a business plan in order to reassure potential lenders that you know what the project will require and how long it will take. HomeVestors notes that when writing a business plan, you should do a thorough analysis of the housing market. Evaluate both the risks and opportunities involved in flipping houses. Make sure you do your research specific to the neighborhood or neighborhoods you plan to invest in, so you can construct the most accurate business plan.

Finally, you should research all the financing options available in order to select the best one for you. You will likely require a bridge or hard money loan. These come with varying interest rates and requirements, so it’s important to look into them.

Paying Your Partners
If you don't plan on carrying out all the renovations yourself, you may need to partner with contractors or hire employees. It's vital that you have a reliable, efficient way to pay your workers. Software that makes life easier like online payroll services will help you keep on top of payments. Many of these services are even available online and can carry out payments and tax withdrawals automatically. With features such as same-day direct deposit, you can spend less time handling payroll issues and more time monitoring your property's progress.

Managing Time
Fix-and-flip projects only become profitable once they are completed and sold. For this reason, it's critical that you finish tasks on time so you can repay your lender and move on to the next property. Rehab Financial Group recommends lining up each contractor ahead of time according to which tasks must be completed first. This ensures the project is never at a standstill.

Consider making a calendar you can use to estimate the amount of time each phase will take and when each contractor should arrive. Avoid having an excessive number of people working at the same time as this could cause conflicts with the space and materials being used. Having too many projects being worked on at one time could end up taking longer because of the chaos.

Sticking to the Budget
Some experienced fix-and-flip business owners recommend purchasing buildings for 70% of the expected selling price after renovations. Sticking to this rule of thumb is a smart way to begin a new project. As you create your budget for repair work, be sure to leave space for unexpected expenses. These might include a delayed sale or an unforeseen structural problem. Once you have finalized your budget and acquired the necessary financing, be careful not to exceed your budget for each area of the building. Doing so may leave you with insufficient funds at the end of the project.

Depending on what type of work you have done in the past, fixing and flipping houses may seem unfamiliar and perhaps overwhelming at first. Even so, you can successfully transition to this field by making a plan and budgeting both your time and money wisely.

Post a Comment