Whether you’re a seasoned flipper or you’re a novice just getting started out, the fix and flip industry can be a highly lucrative one. After all, everyone needs a place to live! However, while there certainly can be money to be made in the flipping market, it’s just as easy to make simple mistakes that can cost you a significant amount of capital. To avoid inadvertently throwing money away – and to maximize your earnings on your next flipping project – here are four key tips to save money and increase your bottom line the next time you flip a home!
Plan Ahead Carefully
Before you start you flip, you need to sit down and take a hard look at how you want to approach the project. You’ll want to start by designing a budget, which can help you be more mindful of any expenses you may encounter along the way. Try to stick to this budget, as these costs can add up quickly! By doing so, and maintaining realistic expectations, you can help avoid excessive expenses during your flip.
Learn How to Haggle
Haggling has a bad reputation, but in the construction industry, it has its place. It’s important to realize that prices may not always be set in stone, and many contractors or suppliers may be receptive to negotiation prices for equipment, materials, and even labor. That said, avoid inadvertently being rude by making excessively low offers, as that can alienate potential contractors and suppliers.
Buy Your Tools
While renting your tools can help save you a little bit of money if you weren’t going to flip very often, frequently renting can get expensive quickly. If you see yourself investing in flipping for the long term, then it may be wiser to purchase your tools outright. This can be much better for future savings, versus constantly paying to merely borrow tools and equipment.
Save on Labor
Finally, you can save a hefty amount of money on labor costs if you know where to look. Many students would be more than happy to earn a few dollars by helping you out. Just make sure you keep them on simple tasks, like tiding up or raking. You can also find “moonlighters” – skilled contractors who are willing to work during non-business hours to earn a little extra money on the side. Their rates may be much cheaper if they’re working for you off the clock.
If you’re wanting to get started on flipping, then you may benefit from a fix and flip loan. To learn more about how we can help you get started on this business venture, or to get started on your loan application, please don’t hesitate to reach out to us here at Hard Man Money today!