Bloomberg notes that house flipping has become increasingly popular in recent years, and with good reason. It offers you an opportunity to turn your home into money, and it’s surprisingly easy to get started if you know what you’re doing. With that in mind, below are some tips from Jersey Shore Real Estate on how to get into the house-flipping business as a senior veteran, including advice on finding the ideal property, reliable financing, and renovating your home to boost its value.
Finding the Right Property
Look around at homes in your area. Think about how you’d renovate them, what amenities you’d add or remove, and how that would increase their value. Keep an eye out for foreclosures or fixer-uppers, which can be a great way to get started with house flipping if you can obtain approval from the selling bank. Research online and even talk to a real estate agent about what makes a house sell quickly and for more money.
Securing Financing
There are many financing options to choose from when you’re flipping a home, especially as a senior veteran thanks to low-interest VA loans. Keep in mind, though, that not all lenders are created equal. The best way to find a lender that can accommodate your specific needs is by asking around and doing some research. Narrow down your list of options by using online resources like Bankrate, which offers mortgage calculators, reviews, and news about mortgage lenders and brokers.
Speaking of financing, if you feel like you need another revenue stream to fund your retirement – not to mention your house-flipping business – you could consider taking on a part-time job that will generate some extra income.
Making Your Property Attractive to Buyers
Kitchen remodels are popular among home flippers and offer some of the best bang for your buck when it comes to increasing your home’s value. In today’s real estate market, where homes are selling more quickly than ever before, having a kitchen that impresses buyers is critical to your success as a real estate investor. When it comes time to revamp your kitchen, make sure you hire a quality plumber, which will cost between $45 and $150 per hour according to HomeGuide. As a rule, only hire licensed and insured professionals.
Budgeting
When you’re trying to turn a profit on a flipped property, you can’t account for every repair — you just have to hope they don’t add up. For that reason, when preparing your budget and planning your renovations, it’s best to add 20% to your estimated cost of repairs as a contingency fund. If something comes up over budget during construction, you won’t be left scrambling at the last minute. Set extra money aside for work that involves trades or specialized skills, including HVAC upgrades, electrical repairs, and asbestos removal.
Benefits of Forming an LLC
A limited liability company or LLC is a legal entity that separates your personal assets from those of your business. Protecting your assets is important, especially if you plan to invest in real estate. When you purchase a property, an LLC protects you against liability issues that may arise should someone get hurt on or near your property. Online formation services are affordable and will help you streamline the process.
Work with a Realtor
Once you’ve fixed up the new property, your best bet is to work with an experienced realtor like Meghan Carroll to sell it as quickly as possible. That way, you can move on to your next project, taking full advantage of the valuable experience you’ve just gained – not to mention the equity!
Play Your Cards Right
While flipping houses as a senior veteran may seem like a risky move, it’s not as hard as you might think. It can cost you a pretty penny, but if you play your cards right, you could wind up with a safe income stream or even a great retirement plan.
Meghan Carroll with RE/MAX Elite will guide you through the process of understanding what home style is best for your family, as well as assist you with developing a purchase offer that makes sense and fits your needs. Call 732-508-7402.
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