I have recently had the pleasure of speaking with Teresa Greenhill who runs a charity called Mental Health For Seniors. Teresa spoke about how many retirees have gone into property flipping, to make some extra money and also give them that zest for life again that they may have lost since they stopped working.
Since my parents retired, they have found it a challenge initially finding ways to fill their days, as they no longer have that need to be anywhere or a purpose. Theresa spoke about how many retirees have gone into property flipping, to make some extra money and also give them that excitement for life again that they may have lost since they stopped working, this has improved their mental health dramatically.
In this blog, I will be discussing some of the information you need to become an expert at flipping homes as a senior. It provides helpful tips on finding the ideal home and most importantly ...making a profit!
Let's begin.....
Finding the Right Property
It’s probably best not to fling your cheque book at every fixer-upper you see. Instead, look for a property large enough for your needs and where you’ll be able to attract potential buyers when it comes time to sell. Alternatively, you could rent out the property or do some Airbnb hosting.
(photocredit, www.airbnb.com)
How To Get Financing for Your Property
If you plan on taking out a mortgage for your property, Money.co.uk explains that there are options. Talk with an online lender, ask family members for loans, or consider taking out equity from your home and using that cash for your project. Just ensure you weigh all options carefully before deciding what’s best for you and your new business.
To help you save time during the application process, ensure the process moves faster by using PDFs, which allow you to easily save and share documents. You can combine all the necessary documents needed for an application into one file, ensuring you don’t have to waste time hunting down the individual documents for each application. It’s also possible to rotate a PDF with this helpful tool in just six easy steps.
The Renovations Needed To Boost Value
Renovations are by far the best way to increase the value of your home. But what types of renovations are most valuable? Investing in a basement or attic conversion can boost your home's value. The attics and basements tend to be the places with unused space in your house, so redoing these areas is an investment that pays off.
RenoFi notes that kitchen upgrades also have a good ROI, such as adding good ventilation to vent grease, smoke, and odours from your kitchen to keep the air cleaner in the home. You may also consider making cosmetic changes, such as painting walls & adding new flooring.
The 70% Rule
Many experts advise house flippers not to spend more than 70% of the home’s after-repair value minus the costs of renovating. FlipperForce.com points out that the 70% rule ensures you buy the home for less than you expect to sell after renovations. The lower your cost basis, the higher your potential profit margin once you resell it.
The Last Few Steps Before Selling Your Home
Whether you're planning on selling your home soon or have already put it on the market, there are a few things to take care of before your estate agent puts up that for sale sign. Prospective buyers will judge your home immediately by how tidy it is and how well-maintained it looks. If you need any outside work done to increase curb appeal before listing your house for sale, such as painting garden walls or new landscaping, complete these jobs before selling.
Finding Wealth in the Property Market
To be successful at flipping houses as a senior, you must know what you're getting into. Remember to seek out the right property, acquire financing, know what renovations have the best ROI, and work with 70% Rule. Always have a plan to keep yourself safe while creating wealth in a property portfolio.
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Thanks to Teresa Greenhill