Many seniors start to search for ways to occupy their time and make money after retirement. Getting into the house-flipping market is a great way to do both of those things and add some excitement to your life. If you’re considering house-flipping as a new business venture, this brief guide from Pearl Capital Management will help you get started in this lucrative field.
Find Your Ideal Property
Avoid purchasing a large property in need of extensive work. Start with a home that could just use small repairs and a few updates. Location is going to be your primary focus, after all. Research shows that buyers prioritize location above all else and look for areas with excellent school districts, low crime statistics, curb appeal, and available transportation. Find a starter home in a good neighborhood, and you’ll have no trouble selling it.
Look at rental homes around that area to get an idea of how much you might be able to rent your property for once it’s renovated. Sometimes it’s more lucrative to manage a long term rental than to sell your property, so it’s worth investigating.
Get the Right Mortgage
You can’t start flipping houses without proper financing, so start by looking into options with your own bank. If you’ve successfully paid off loans with the company in the past, you may have more favorable risk assessments and better financing options. However, you should continue to search for other sources. Get quotes from lenders so you can best weigh your options.
Renovate to Increase Value
When you start making renovations to the home, focus on areas that significantly increase the value. For example, kitchens are considered the heart of the home. Choose a focal point and enhance it. You could add a stylish range hood. It should also test well for grease, smoke, and odor removal. Update the bathroom and work on landscaping to make a good first impression on buyers. If you need some extra funds to complete your renovations, FHA 203k loans are available for qualified borrowers.
Turn It Into a Business
Consider turning your house-flipping venture into an official business. Start by choosing the appropriate business structure. Most small businesses begin by registering as an LLC Arizona because you get tax advantages and protection from potential liability lawsuits. However, regulations can vary slightly depending on your location, so you might want to contact an online formation service that’s already familiar with the requirements for setting up an LLC in your state.
Another important item on the checklist is to form an operating agreement. This is a vital component for an LLC that establishes your operational and financing plans. As you add employees to your business, you can use this document to define positions and rules for the company.
Before you dive into your new business, set up an appointment with Pearl Capital Management to discuss your long term financial goals. They can help guide you towards the most strategic investments to ensure you are on track.
Market for Yourself
Marketing can be a challenging segment of the process for seniors. Strategies evolve quickly in the digital age, but that doesn’t mean you have to struggle to keep up. Once you have a few properties to sell, you’ll need a website to post them all for sale and a visual brand to make your business identifiable. Start by designing a unique logo. It should make a strong first impression and be instantly recognizable to people in the market.
Get Your Investment Business Started
Now that you have the tools to enter the market, you can make your business official by registering as an LLC. Remember to start small and work your way up. You don’t want to overwhelm yourself too early and burn out before you get the chance to build your business.
