Flipping After 50: Buying and Reselling Real Estate
Working after retiring from your career isn’t always about making money.
Sometimes, it’s about having fun, staying involved in something rewarding, learning a new skill or trade, or fulfilling a lifelong dream that you felt you couldn’t indulge in with other responsibilities. Earning additional income in the process, however, can ease your mind about things like long-term care, as well as provide you with the freedom to travel or leave something extra to your relatives or your favorite charity.
If you’ve always enjoyed investing but want to be more of an active participant than manipulating stocks or crafting streams of passive income, the house flipping business may be exactly what you’re looking for. As you are fixing up and detailing your investment homes to be more attractive to buyers, check out the offerings on Stuff4Homes, a family-owned business that will help any home feel like your buyer’s new home.
If you don’t have what it takes, get it!
Flipping homes engages several aptitudes, including:
● Financial savvy
● An understanding of — and access to — real estate markets and channels
● Negotiating skills
It would be surprising if you were proficient at an expert level in all of these skills! If you’re like most people and excel at just a few, then partner with someone who has complementary expertise. You can also hire out anything you cannot do yourself, such as significant remodeling and repairs.
If you don’t already have the expertise or a network to help you locate properties, consider partnering with or getting help from a real estate agent to help you with your search. Discuss your goals and then pinpoint the markets that offer the best promise of reaching those goals. If you have the time, you can also scope out properties yourself. Depending on your experience, consider the first time you do this to be a learning experience, so don’t take on too much for your first project.
If you are really passionate about real estate, consider getting your real estate agent’s license. You’ll save on fees in the flipping business, have easy access to properties, and, if you decide to get out of the flipping business eventually, you can still stay in the real estate industry, working as much or as little as you like.
Flipping fun is still a business!
Even if you’re having the time of your life getting started in your adventures of house flipping, remember to treat it like a business and not a hobby. Whether you go it alone and contract out services or embark on this journey with a carefully selected business partner, have the necessary contracts and agreements in place and set up a separate bank account for this venture.
An accountant can advise you on such things as payroll and your necessary tax payments. Discuss the advantages of forming a business structure for your home flipping business, such as a limited liability company or LLC. Consider, for example, if you decide to rent out any of your homes prior to re-selling it — a common strategy but one which could open you up to liabilities with tenants. As a sole proprietor, you would be personally vulnerable, whereas a corporate or LLC structure can offer some protection for you and your assets while granting you certain tax advantages. An LLC, in particular, offers greater flexibility with less paperwork than some other corporate structures. Using Zenbusiness can save you money and get your LLC formed painlessly and quickly while making sure that all of your state’s requirements are still met.
Do it as long as it’s fun!
One nice element to flipping homes is that, as your success grows, you can minimize your participation as long as you have trusted partners, employees, and contractors to do most of the work. You can stay involved as much as you want — perhaps you’d just like to keep your hand in the remodeling and design stages, for example. It’s rewarding to have a hand in selecting a home for someone else.