College is Expensive

A college education is more expensive than ever, and taking out a student loan can be a slippery slope. Is there any other realistic way that adults could pay for college? If you don’t mind being your own boss and have a head for numbers, you could potentially flip houses to make money. A single successful flip can generate thousands in profits. And while the work is challenging, even beginners can do it with the right preparation. Below, OutFactors explain how adults could flip houses to pay for college:

What Does House Flipping Involve?

House Flipping is a Business

First, it’s important to know what house flipping entails. House flipping is running a business. As the founder, you’ll have to work hard and do a lot of the heavy lifting initially (until your business takes off and you can afford to hire help). Having a clear strategy to make money is essential, as is the willingness to navigate challenges and risks. Writing a business plan can help you get started on the right foot.

Find the Right Location

Location is king when it comes to real estate. Fixing a house up is only worthwhile if it’s in the right spot. As such, look at the area first before you look at the house. Check property values, recent trends, amenities, the accessibility factor, and the state of the local real estate market. A good realtor should be able to help you pick the right area.

Determining if the House Flip Will be Profitable

Running the numbers is essential if you want to turn a profit. Real Estate Skills explains the 70-percent rule in house flipping – you should only purchase a property if the “After Repair Value” (ARV) allows you to turn a significant profit. Note that the 70-percent rule is but one part of the equation – you still have to fix it up and then find buyers for it, which means profits aren’t guaranteed.

Finding Financing – Like Getting a Mortgage

How are you planning to purchase the home and fund the repair? You could apply for a mortgage, which is a popular option. Other options include loans from private lenders, finding investors, wholesaling, home equity, option to buy, crowdfunding, and “live-in” flipping. SuperMoney offers tried-and-tested ideas.

Upgrades to Attract Buyers

Besides repairing the house, you could upgrade it in various ways to make it more appealing to potential buyers and so turn a bigger profit. Adding outdoor upgrades like gardens, seating areas, pagodas, and verandahs maximize the property’s curb appeal. Indoor upgrades like new plumbing, a modular kitchen, a home office, and a garage bedroom give it functional value. This Old House lists high ROI upgrades.

Marketing Your House Flip

High-quality marketing is essential if you want the highest possible offer on your fixer-upper. There are various ways to market a property. A good strategy is to make it spick and span, stage the house (with rented furniture and decoration), click high-quality photos, and list it for sale. Creating offline and online marketing campaigns can help you find more potential buyers.

Forming an LLC

Establishing a limited liability company (LLC) for your house-flipping business can protect you and your assets from litigations. In order to form an LLC, you can hire a lawyer or use a formation service, the latter being the less expensive option. States have different regulations around LLC formation, so check the rules locally before moving ahead.

Learning While You Work on Your Business

You could pursue an online education program while working on your business. Online degree programs are much more affordable than in-person learning, and allow you to focus on house flipping while still keeping up with your studies. For example, if you want to be a teacher down the road, you can earn an education degree that covers instructional practice, learner development, and in-depth knowledge in particular subjects. With the right program, you won’t even need to get a traditional degree by attending college. Take a look at this option.

Conclusion

House flipping can be a challenge, but the rewards make it well worth it. A single successful flip could potentially be enough to fund your college education. Forming an LLC can make running the business easier. Remember that you don’t have to house flip alone. You could team up with realtors, marketers, contractors, and other professionals to improve your chances of success.