If you're intrigued by the idea of making some extra money by flipping houses, you aren't alone. Especially now that you've retired, perhaps you need to stay busy or want to pad your nest egg a little more. By entering the house flipping business, you can do both.
Before You Start
House flipping describes the process of purchasing property under market value, revamping it, and selling it at market value, for a great profit. There are several things you need to know before you jump into the first house purchase. House flipping takes a lot of work, and you'll need a lot of funds for it. It may not be a completely easy path to wealth, but it's a perfect place to start because, in the long run, you'll appreciate what you learn, as well as the financial gains.
How to Get Started With House Flipping
Because flipping houses isn't something you can get into overnight, you'll want to ensure that you have your finances in order and suitable properties in mind. You also need a game plan, as well as the resources to help you realize your vision.
Set a Budget
To achieve a significant financial gain in house flipping, having enough money to finance your project is important at the outset. Consider the possible financing options you can qualify for as a retiree to determine the most advantageous. Ruoff Mortgage offers a wide range of options geared towards helping you acquire and improve a home.
Find the Right House
Look for properties that can help you save cash, is of sound structure, and is in a great location. A mix of variables will increase the home’s appraisal value once it’s renovated and hits the market. Browse through auctions, foreclosures, and short sales to find properties that are within or under budget. You can then make an offer.
It’s a good idea to work with a real estate agent to help you stay within budget, as well as have access to a wider inventory of potential properties to flip. Finally, be prepared to make multiple offers since, realistically, not all will go through.
Know What Renovations to Make
Know what kind of changes the property needs to increase its market value and make it compelling for buyers. In many cases, a property may just need sprucing up that you can DIY. This can include changing fixtures like cabinet handles, revamping walls, and repainting. Installing wallpaper can be a nice and easy aesthetic upgrade. These days, there’s adhesive-based wallpaper that can be easily peeled and stuck on, making installation and removal easy. Designs are printed on-demand, as well, so you can customize them to your heart’s content.
Hire Trusted Contractors
For certain renovations and repairs, you will need to hire a team of experts. Not only will they be licensed and insured, but this is a move that guarantees your utmost safety. These pertain to structural repairs, handling asbestos, and HVAC, electricity, and plumbing concerns.
Sell the Property
After aesthetic updates and making sure the property is up to code, you’re ready to put it up for sale and make a profit! Make sure to research property values in the local market to determine a competitive selling price for the house. Better yet, work with a realtor to help you market the property the right way and to widen your reach.
To conclude, flipping houses is not easy, no matter how simple it looks on TV shows. However, if you're ready to learn what you need to know to do this business and put in the work, you'll realize that house flipping is a profitable venture and can help keep you very comfortable indeed in your golden years.
Find a Ruoff loan officer near you to get the ball rolling, starting with financing your first project!