How Seniors Can Become House Flippers

Getting Your Financing on Track

While house-flipping has become more popular, it’s still a risky business — and it requires a lot of money. You’ll need cash upfront to buy a home and more to renovate and put it on the market again. If you don’t have savings, several financing options are available to house flippers — but ensure you weigh your options carefully before taking on any debt.

Look for properties in areas that are growing. You want to see new construction, population growth, and a demand for new housing units. Look at current listings, too — you’ll get an idea of what they’re selling for and see what renovations might make your house more valuable.

Renovations are the key to turning a low-value property into a high-value property. A newly finished basement, for example, is likely to add significant value to your home, especially if you can find a buyer looking for additional space or an open floor plan. Additionally, ensure you include all the updates when writing up your home sale so buyers know what they’re getting. It can be the difference between making or losing money on the sale.

With the 70% rule, you can figure out the maximum amount you should pay for an investment property. In this case, the maximum purchase price would be up to 70% of the after-repair value minus the costs of renovating the property. 

If you're unsure how to form your business structure, talk to a financial professional. A limited liability company (LLC) is a good choice if you plan to start your business and are concerned about protecting personal assets from liabilities.

While you probably don’t need to market your small flipping business, it can help to network here and there, particularly with contractors or other home professionals in your area. So always keep a stack of business cards in your car. This doesn’t have to be a major expense either. You can create business cards online using a template, and then have a bulk run made at an affordable price.

It’s never too late to consider a career in house flipping. If you’re an older entrepreneur looking for a change or just retired and thinking about what you can do to add some sparkle to your golden years, flipping houses may be an ideal business model for you.

For your estate planning and business formation legal needs, trust the expert counsel of Simon, McKinsey, Miller & Stone!