Seniors, Do You Want to Get Into the House Flipping Business

House flipping is the ultimate business venture that is simultaneously risky and rewarding. And it's not as simple as buying a cheap home, doing a few touch-ups, and then selling it in a month, either. Many factors separate a successful flip from a total flop. According to Money.com, 12% of all flips are sold at a loss or break-even cost. Do you want to avoid the common mistakes and make it to the finish line? Here, we walk you through the main ways to get a great return on your investment.  

Monitor Your Finances Closely  

You'll never know if your flipping business is successful if you don't take a hard look at the numbers. Math and finance aren't everybody's strongest suit, but there are tools out there that make it easier. Find the right accounting software for your consulting business. Not only does the right software provide real-time financial reports and income and balance statements, but it can also help you analyze profitability and allow workflow automation.   Also, consider where you're getting your finances from. Some seniors prefer dipping into their retirement fund for the project, while others refer to a mortgage lender for support.  Another thing to consider is creating an LLC for your house flipping business. This entity has certain tax benefits and less paperwork, and your assets will be protected in case of litigation. The easiest way to form a Florida LLC is to use a formation service.   

Inspect the Property Before Making an Offer  

Simply put: Don't just 'go with your gut.' Avoid making an impulsive purchase that may reveal significant property flaws when it's too late. Get an appraisal or inspection done so that you can assess the condition accurately and budget accordingly for the repairs.   

Know Your Target Audience  

Keep your end user in mind. They should be influencing all your renovation and design decisions because, ultimately, they will buy the property from you. 

Consider the following questions:  

● Are they low price point buyers or higher-end ones? 

● Which sorts of neighborhoods would suit them most? 

● What renovations and upgrades would be most appealing to them?  These questions will help you tailor 

your improvements to fit within the ideal budget. It will also ensure that there are buyers out there who will be interested in the end product.  

Surround Yourself With a Good Team  

First-time buyers should reach out to a reputed contractor and instructor. Having a trusted real estate agent for finding cheap but well-built properties is a must, as is hiring a mortgage lender for financing. With the right team, you'll be setting yourself up for maximum success. Budget their salaries for transparent planning, and remember to set up payroll. Automating payroll is the best way to manage paychecks worry-free.  

Know Which Improvements to Make  

A common mistake first-time flippers make is to over-improve a property. This will not help you reach your desired return on investment. There's no point renovating a home to make it look like your ‘dream property' because you're not the one living in it! Keep your costs low and evaluate the upcoming industry trends and necessary renovations. According to HGTV, investing in the latest HVAC, plumbing, and electrical improvements will always pay off well.  Seniors also often attempt to DIY their projects. While older adults have the skill set to DIY many minor project elements, consider if it is worth your time and effort. Sometimes, it makes more sense to hire a professional to get the job done more quickly, efficiently, and just... better.  The bottom line is that house flipping is like any other significant project — it is much more complex than it looks. Get prepared to wear multiple hats and do various tasks; as a senior, you are more than equipped to do so. All the best for your new venture, you have everything it takes to make flipping a success!  

Does your Tampa-area home need repairs or remodeling? Turn to the skilled professionals at Todd Homes! Reach out to us at (813) 932-5988.