How To Save Money When Flipping Properties
If you like listening to property podcasts like The Property Hub with Rob&Rob, and We Buy Houses Radio with Rick Otton, chances are, you may have heard topics on fixing and flipping. Honestly speaking, profitable property flipping is all about timing. The more time you spend holding on to the house, the more expensive the entire process is going to be on your end.
There will be repairs, inspections, advertising and marketing costs, more repairs and so on. What you want to do is carry out all the necessary repairs, pay for the advertising and get those offers coming in as fast as possible. Here are some tips on how to save money when flipping properties.
Consult with an inspector and contractor before investing
There are three major steps to property flipping:
- Renovation (upgrading)
- Selling (preferably at a profit)
Before you undertake the very first step, which is buying the property to be flipped, you should consult with an inspector and a contractor. The inspector will give you a full report on what needs to be improved in the house before it can be sold and the contractor will tell you how much all that will cost and what kind of time it will require. This gives you enough information going into the transaction and saves you from the all too often expensive mistake of underestimating just how much the repairs will cost and how much time the house will spend off the market.
Think like a squirrel
If you have been in this game for a while, you are probably used to buying renovation materials for your new finds. The problem here is that material prices often change based on ongoing offers and deals. Since you are going to be doing this flipping properties business for the foreseeable future, it is advisable to stock up on the commonly needed materials whenever and wherever you find a good deal. Not only will this save you money during periods when the prices do go up, but it will also save you quite a bundle when you buy in bulk during those wonderful offers.
Find and use the right contractor
If it is at all possible, you should strive to find and use the same reliable contractor or sub-contractor for all your renovation jobs. This way, you will develop a cordial working relationship with that contractor that will result in better discounts and trust. Besides, contractors and sub-contractors know all about great material deals when they hit the market. Using the same company will make you like family and not only will they feel compelled to share these savings information, but also to give you a family rate on future jobs.
At the end of the day, it is the speed with which you identify, buy/renovate and flip the property that will make the big difference as far as saving money is concerned. This process can be a lot of fun but if not handled properly, can be quite expensive too. Save a tonne of money with these wonderful property flipping tips.