House flipping is an exciting business venture as long as you enter into it fully prepared. For seniors, much of the DIY portion can be overly strenuous, but that doesn't mean that you can't be hands-on and enjoy the process. Consider these vital tips from TJ Fortener to help you get started and grow a successful housing flipping business.
Find the Perfect Property to Get Started
If you want the house to sell quickly when you finish, prioritize location. Fox Business recommends that you buy a more run-down property in a better neighborhood and fix it up to get the best return on your investment. Research school districts and community amenities. Avoid choosing anything too unique. Something that can conform to appeal to a greater demographic.
Search for the Right Financing
Obviously, the best financing solution is to pay out-of-pocket for your first investment property. If you have the money, start small and purchase a home with your own cash. If you prefer to finance through an outside source, a traditional loan is not recommended. Many lenders will not even offer a mortgage for a flip. You could consider a home equity loan or line of credit. Start with your established bank if you have a good relationship.
Make the Necessary Renovations
In many instances, your home improvements and repairs should add value to the property. Some easy ways to do that include the following:
- Update the kitchen
- Add quality bathroom fixtures
- Invest in high-end landscaping for curb appeal
- Strategize your lighting placement
- Hire professional painters
- Replace the flooring
Using quality products will make all the difference. If the property already has real hardwood flooring, invest in restoring it to its original beauty. Buyers appreciate a home that has been shown love.
Make Your Business Official
Once you get used to the house flipping experience, you can turn it into business and market yourself. To start, name your company and register as an LLC. You can do it online, making the process very simple. Registration is affordable, and you get to take advantage of the low paperwork cost and tax breaks. To get a better grasp of the steps it takes to launch your LLC, it may help to work with a formation service. However, it’s important to select a service that will ensure that all of your paperwork is filed correctly with the state. So, do some research online to help locate the best LLC formation service for you.
Make Marketing Fun
Now you can begin marketing your business. Create a YouTube channel and upload videos to showcase the renovations you made. Post updates about open-house events and share them on social media. Create a visual branding strategy that you can use across your online presence, starting with customized YouTube banner templates. You can add your own logo, text, and visuals. Make sure you add it to your business webpage as well.
Prepare Your Finished Home for Sale
Now that your first flip is complete, it's time to put it on the market. Take advantage of local realtors to find the right owner. If you need to sell fast, Ownerly notes that you can participate in real estate auctions. Start by contacting an auction company for more information. Hire an interior designer to help you stage the property for open-house events and walk-throughs. If you have your own furniture to use, you can still seek professional advice on proper placement. Not all buyers can see the full appeal of the home without furniture.
With every sale, you can reinvest in a new property and start the process all over. Don't be afraid to start small and work your way up. You learn as you go in the housing-flipping business. Remember to find the perfect property, form your LLC using a formation service, prioritize marketing, and prep your home for sale.
If you’re looking for the right home, TJ Fortener of Keller Williams Heritage West can help. You can get in contact with TJ by calling 940-465-5154.