Retirement funding is a fast growing financial epidemic in the United States today. According to a survey by the BankRate Monitor, 42% of Americans have saved less than $10,000 for retirement. For Americans nearing retirement age, the average amount of retirement savings equals only 12% of the recommended amount needed to fund a retirement at the median income level in America today ($46,XXX). Even more disturbing is that in 2022, Social Security costs are projected to begin exceeding revenues and the fund is expected to be entirely depleted by 2034. As advancements in medicine continue, Americans are living longer, and therefore requiring more years of retirement funds, than ever before in history. Based on these trends, the Harvard Business Review predicts the U.S. will soon see rates of elder poverty at their highest since the Great Depression.

Scary, huh? One of the ways to get ahead of this epidemic is to create supplemental income as part of a plan to get caught up in retirement savings. Fixing and flipping houses has been a key contributor to my supplemental income, and has kept me on track for retirement. Here’s why:

In 2017, house flipping was at a level not seen since 2007 with over 207,000 properties flipped by 138,000 different entities nationwide. 69% of these entities were husband and wife investors. The amount of gross profit (sales price minus the purchase price) for these properties in 2017 has risen to $68,143 per transaction. While this number does not take into account the remodel expenses and holding costs such as utilities, taxes and financing expenses, this gross profit amount is at the highest level since 2000.

The numbers work out on paper, but I know starting a fix and flip business can be daunting. You probably have some unanswered questions and reservations before taking the dive (I know I did). You’re likely asking questions like:

  •       I already have a job. How can I do this too?
  •       How can I get the education I need to ensure my projects are profitable?
  •       How can I get the financing I need to fix and flip properties?
  •       How do I find properties in my market?
  •       Are there experts I can turn to for advice when there are bumps along the way?

I’m here to tell you, yes, you can do this– even if you already have a job. Fixing and flipping houses was my side hustle for many years before our profits allowed me to make it my main gig. Today, we’ve flipped over 200 properties, and I want to share the lessons we’ve learned along the way. The best advice I can provide is, before anything else, take the time invest in an education and gain the baseline knowledge you’ll need to successfully fix and flip houses for profit. As you research real estate education seminars, you’ll likely notice that many of these classes cost upwards of $10,000. I’ve attended many of those seminars, and can tell you the price point is absolutely unaligned with the value you will derive from those classes. If you interested in an affordable solution to gain your real estate education from real experts who are fixing and flipping houses every day, check out our Fixters Academy.

Once your education is in place, getting funding is essential to getting your business off the ground. You need money to operate your business and purchase your first property. Through the Fixters Funding Network, we have financing options available that can help you get started and there’s a good chance you can receive 100% financing for your first projects to get you started.

As you start your fix and flip business, building strong relationships with trustworthy and knowledgeable property sources is critical to your success and your ability to grow in the future. As part of the Fixters community, you can see other members projects across the country and coaches are available to help you through the unexpected items that come up in almost every property.

At Fixters, we feel it is important to get started slowly and conservatively. It is important to get off the ground the right way to be able to build a long-lasting and sustainable business that can provide supplemental income for years to come. Check back in next week for the second part of this blog series where we will walk through how to invest your new profits to create a supplemental retirement plan and achieve your financial goals and the lifestyle you want!