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House Flipping as a Family Business
A recent survey showed that nearly one in four adult Americans have credit card debt that exceeds their savings. If they have savings at all. Let us not forget those with student loans either. Add all the unemployment issues to this, as well as the newest predictions that another global financial crisis is imminent, and the prospects of paying off ones debts in the next 10+ years seem bleak. So, is there any hope left for having any quality of life? Actually there is. Taking things into your own hands and starting a family business might be the solution for those who wish to gain financial freedom and become debt-free. If you have no idea what sort of business you should start, we suggest house flipping.
Why House Flipping?
Buying relatively low-cost homes, fixing them up, and selling them at a profit involves a lot of hard work and carries a number of risks with it, but the rewards can be very lucrative. If it was not the case, many Hollywood celebrities who flip houses on the side would not be wasting their time on it. And the more money you invest at the beginning, the more profit you are likely to gain.
How to Start?
If you do not want to gamble with your family’s future, there are some things you need to learn about house flipping. It is not for the weak-hearted and those looking to get rich quickly. It is a time consuming venture that takes patience. Rushing into things thoughtlessly does not necessarily mean that you will fail, but it will most definitely chip away at your profit.
Before you begin the process of purchasing a house, do your research and educate yourself. Visit seminars about house flipping, or look for useful material online, such as free downloadable ebook by Flip2freedom community. Share this part of the legwork with your entire family and give research assignments to everyone.
To enter the house flipping market, ideally, you will need money for a down payment. But if the money is not available, there are different borrowing options. Ask a friend for a loan or find a business partner just to get started.
Now, the real money in this line of work lies in sweat equity. That is another reason to get your whole family involved. If you hire a contractor to do all the repairs, your profit will be drastically reduced. So, get everyone to grab a hammer, or a nail gun, and start fixing.
How Will This Affect Your Children?
Cortney and Robert Novogratz have been successfully juggling dozens of flipping projects and seven children for over twenty five years, and they believe that house flipping is all but bad for your kids. Both parents agree that this kind of family business can be used to develop strong work ethic with your kids and teach them various practical skills. Besides, your children’s unique personalities can be a valuable contribution in the renovation process. If you are concerned that constant moving could be stressful for the youngest members of your family, do not worry. If it is only the house they are changing, but not the school or town, then it can actually teach them to be more flexible. Another way in which your children can participate (provided that they are old enough) is to run a blog about your projects. This can bring additional income to your household budget.
While the debt payoff can be the strongest motivator to start flipping houses, saving for retirement, quitting the rat race, and spending more time with your family are not insignificant benefits either.