House flipping can bring in substantial sums of money for seniors. What’s even better is that getting started is often easy. Much of the time, it comes down to strategic alliances with real estate agents. Whether you’re a senior looking for a new, potentially lucrative, project, or a real estate agent looking for a way to get into the house flipping market, the Beranek Realty Group explains more so you can decide if this path is the right fit for you.

Take the Pulse of Your Area’s Housing Market
Local real estate agents are the best people to discuss housing trends with. They can tell you how viable house flipping might be. For example, do underpriced properties with good bones often come onto the market? How hot is the market right now, and what is the profit potential of house flipping in your region? How much money might you need to get started?

Check out agent websites that offer key details on properties for sale, rentals, housing inventory, and median income in the area. For example, fixer upper homes in the Los Angeles, California area start at around $400,000. These sites will help you to get a feel for the current market in your area.

Streamline Home Renovations, Purchases, and Sales
New house flippers sometimes make mistakes, such as spending too much money on a certain renovation while overlooking another home improvement that would be more lucrative. Property agents can tell you early in the process what’s more likely to be successful than not and prevent you from making costly errors. Similarly, they have a good eye for when a distressed property is not worth flipping, for instance, if it has structural issues. They can assist you in making smart purchases based on location, condition of the house, and price.

Auctions and foreclosures can be good ways to get properties at low prices. Agents have early, thorough knowledge of these opportunities and how to maximize the process so you end up with a house to flip. Whether you’re buying or selling, it is a huge benefit and time-saver to have the same agents handle the transactions.

Establish Relationships With Critical Parties
Agents know a wealth of folks, including contractors, renovators, mortgage lenders, and lawyers. Go through a real estate agent to save a lot of time finding and getting these people yourself. As an example, suppose you need a mortgage to get the ball rolling on your first house to flip. A real estate agent can use pre-established relationships to expedite the process.

Similarly, many house flippers form a limited liability company (LLC) for their business. This formation offers personal liability protection in case your business is sued. The process is technical but fairly simple, and an online formation service can help you set up your LLC in minutes.

Once you’re set up as a business, a payroll system is essential, especially if you plan to use contractors, such as repair professionals and property managers. You’ll want to check out payroll software that is robust enough to handle all your payroll needs, including direct deposit and tax payment to the proper authorities to help you stay compliant. Quality software will include an app that allows you to edit employee information and run reports on the go, even from your smartphone.

Offer Camaraderie and Support
Support goes a long way in business, and many agents offer genuine friendship. This type of alliance makes a world of difference whether you’re new to house flipping or are an experienced pro who recently moved to the area.

Of course, not all agents are created equally. Meet with a few (or more than a few!) rather than settling for the first one you encounter. Ask about the agent’s experience, particularly with house flippers/house flipping. Note if the agent has any strengths that could fill in for possible weaker areas you have.

Make Connections and Get Experience
As time goes on and you gain more experience, you will meet more real estate agents. They can all be valuable assets as you develop your house flipping business in your retirement. Make connections, learn what you can, and develop partnerships with the right people, when you find them. With the right strategies and assets, you can develop a successful house flipping business.