Becoming The Boss By House Flipping
The goal of house flipping varies greatly from person to person. However, we see new investors looking to punch out of their day job to take on flipping houses full time. If you want to become your own boss, there are a few things you’ll need to keep in mind financially before you can pull the trigger:
- Employer costs, such as health insurance, retirement matching and other benefits will have to be shouldered by your gross profits. You’ll also have to consult with a tax professional to file your new income correctly and include taxes from the home sales.
- Planning for retirement should be a huge priority. While we’re not advising you plan to open a group 401k account, you should always be looking at your future financial success. It’s a good idea to store away funds in alternative investments to diversify your portfolio and minimize your risk.
- Never go all-in on a deal. As your own boss, you’ll need to pay yourself a salary from the profits and accounts that you keep. When your money is tied up in real estate you’re essentially broke regardless how much the future profits could be. Always keep a salary set aside to cover your living costs. Never take on a flip that could even possibly cost your entire nest egg.
- Borrow smart and effectively with Chicago Rehab Loans. By partnering with our private lenders, you can close on houses much faster and take advantage of opportunities without threatening your nest egg.
One mistake that new full-time flippers make is losing sight of deadlines and taking their eye off of the open house. Above all, you need to sell houses to make money which means making and sticking to deadlines whenever possible. Any deviation from your deadline should be avoided at all costs. At any point in the process, you should know which contractors are on site, where you are in the permit and inspection process. Additionally, you need to know what materials need to be ordered or delivered and when. Even if you work with a general contractor for one or more projects, check in with them regularly to keep track of these answers.
At Chicago Rehab Loans, we want to help you generate huge returns on your investment property. Our loans help you close on houses quicker than a traditional bank loan. Get the investment property funding you need quickly with our experienced private Chicago lenders.