By Erin Reynolds
House flipping has become increasingly popular in recent years, with many making profits along the way. If you're thinking of trying this venture, it’s essential to research and ensure you minimize risk. This guide from Photos by AG outlines the steps you need to take to pursue house-flipping as a senior.
Is Flipping for You?
As is the case with most investment opportunities, flipping houses comes with no guarantees. However, if you’re a senior citizen looking for alternative ways to earn money or perhaps gain equity in your home, flipping can be lucrative. It depends on your attitude toward risk and how much time you have.
Typically, you need at least $15,000 to renovate. However, if you want to make house flipping your full-time gig, you're likely to need more. The average cost of flipping a house is just over $20 per square foot.
As a senior citizen, you’re possibly working with a smaller budget, and you may need to secure financing options before investing. Consider taking out loans or using retirement funds as a means of securing additional capital if you don’t have enough cash on hand. It’s also helpful to talk with your bank about refinancing options, which may lower your interest rate and help you qualify for a mortgage.
When house flipping, whether you live in a big city or a rural area, look for homes needing repair that are within a reasonable driving distance of your home. Prioritize homes needing cosmetic upgrades over those needing major structural repairs.
Consider looking in up-and-coming areas — these may be affordable while improvements and new developments are in the works. Find a prospective property by walking or driving through neighborhoods and noting things you like or don’t like about properties.
Before you start thinking about buying a property, inspect it thoroughly. Many flippers go in blind, assuming they can identify all a property's issues by looking at it — but that isn’t always true. Some problems, such as termite damage or mold, don’t appear immediately and may be difficult and expensive to fix.
Add value and appeal by remodeling your kitchen, adding a deck, or knocking down walls to create open space. These upgrades can increase your home’s value and give you a head start on finding a buyer.
Selling Your Property
You’re best off working with a real estate agent to help sell your property. They know the ins and outs of the market and the area, and will be able to guide you through the process. But don’t rely on your agent to take your property photos. Work with an experienced photographer like Photos by Ag who will know the right angles and techniques to really show off your property.
Opening a Business
Opening a flipping business can involve risk and a variety of unknowns, so you need all the knowledge and support you can get. An LLC, or limited liability company, combines the simplicity of business formation with tax benefits and protection from personal liability. Forming an LLC is inexpensive, and if you use an online provider, almost entirely hassle-free.
Plus, once you have your business established, you can develop a professional reputation for house flipping. Be strategic about your branding, too, so you build brand recognition. Develop a clean and memorable logo, and use it along with your brand colors to design banners online to promote your business across social media platforms and your website. The process is simple and you can customize templates for free.
What better way is there to spend your senior years than by buying bargain-priced properties and turning them into valuable assets? To start your home-flipping project, you need access to cash and a keen eye for opportunities. And contact Photos by AG to get amazing pictures to feature your finished properties.