Over the years I’ve benefitted by flipping various kinds of real estate. In fact, the only category I haven’t rehabbed for a profit is a house. 2-4 units, small apartment buildings, even a medical building once. In fact, that one was my favorite. I’m not the flipping type, but those who do it well have my respect and admiration. The real pros can fix ‘n flip in pretty much any market conditions, with few exceptions.
What the vast majority of ’em can’t do is retire well. Some can’t retire at all.
Those who buy and sell for a profit on a consistent basis will definitely improve their lifestyle. They’ll drive better cars, send their kids to better schools, live in better homes, and enjoy superior vacations. This is a good thing. We all like the finer things in life.
Problem is, though an incredibly enhanced lifestyle is wonderful, it does nothing for retirement. Maybe that huge RV would work?
In the last decade or so I’ve had, perhaps, a dozen new clients who came to me as first class flippers. With some exceptions they fell into the age range of 40ish to 60ish. What they shared was the realization that their ability to make profits by adding value to homes hadn’t done squat to ensure a happy retirement. The next thought poppin’ into their heads is that they don’t wanna be rehabbin’ homes their whole lives. Even with excellent teams workin’ for ’em, the process gets old when retirement beckons.
Unless rehabbing is gonna be the source of your retirement income, you need an additional strategy.
Next week I’ll address how a skilled, experienced flipper can create a stand alone retirement plan that will get them where they need to go — and likely more quickly than those who aren’t talented flippers.
What you wanna take away from this post is simple: Flippers often live very well — and often retire, um, not so well.