If you’ve done any reading at all about house flipping and creating a real estate investing business, then you know that it’s not a full-time, 9-to-5 style career. You know that this kind of business can afford you a lot more free time to spend with your family, which is a much more attractive idea than spending 40 (or more) hours a week cooped up in an office, staring at a computer screen.
At the same time, I wouldn’t exactly call house flipping “passive income.” To keep making money as a house flipper I have to keep making deals. As I grow my business, I can delegate a lot of tasks—like lead generation and project management—to my employees and partners. However, as much as I delegate, I’m still a very active participant in my business. And, seeing that, a lot of people have asked me if there’s any way they’ll ever really be able to “retire” and keep collecting income with house flipping. Yes, actually, and you can do it in a few different ways.
Become an Investing Partner or Private Lender
As you start to make more deals and sell more houses, you’re going to start accruing some serious capital. You could let that sit in the bank, or you could reinvest it to help it grow even more. As you become more successful as a house flipper, you will have the opportunity to become a private lender or investing partner for another house flipper in your area.
If you’ve built a house flipping business with a full staff of interns, assistants, and budding real estate investors, you may actually want to do this within your own business. Instead of being in charge of all of your fix-and-flip projects, you can step back and let one of your rising investors take your place. Then they can put in the sweat equity while you put in the capital (and/or find new investing partners to work with for bigger projects).
If you’ve largely been working on your own and with contractor help for your real estate investing business, transitioning to become an investing partner or private lender is even easier. You can partner with trusted house flippers in your area who will put in the work while you put in the money, and you won’t have to lift a finger to gain serious returns in very little time.
Invest in Fix and Hold Properties
Another good way to turn your house flipping business into passive income is to start investing in fix-and-hold properties. Find a good property management company, and once you’ve finished with the rehabs on each of your properties, have your property manager take care of tenant acquisition and all of the daily, weekly, and monthly tasks that come with being a landlord. Having a few fix-and-hold properties can be a great way to start collecting passive income that will continue to come in for as long as you own the properties and have tenants living in them.
These are just a couple of the ways you can turn a house flipping business into passive income so that you can enjoy your retirement (or retire early and enjoy a lifetime vacation). And, of course, there’s no rule that says you have to stop flipping houses entirely if you choose either of these routes. You can always keep your eye on the MLS and great leads in your area so that you can take on especially lucrative or interesting flip properties whenever you want.