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Approaching any task or project that requires a financial investment can easily become unwieldy if numbers aren’t crunched and a budget isn’t put in place from the start. This is especially true for fix and flip investment properties, where unforeseen costs can easily wreak havoc and loom over what could have otherwise been a smooth process. While surprises are likely to happen, there’s no reason why you can’t handle the aspects you can easily control—the materials.
Refurbish whenever possible
On the surface, that’s really what a fix and flip property is anyway, right? So why not apply that on a more granular level? After all, not everything that is scratched, broken, or dated needs to be tossed aside and replaced. Keeping original cabinetry and applying fresh paint to them can breathe new life to an otherwise outdated kitchen. Opting for high-grade vinyl flooring vs. expensive hardwood can still upgrade a property without breaking the bank.
Being liberally open-minded on how you can save dollars without sacrificing quality and a high-end product is ultimately the balance you want to strike when fixing and flipping and refurbishing is one great way to achieve that.
Compare prices and stock up
For the craftier investors who will be doing a lot of fixing work on their own, you can benefit from visiting not only multiple websites, but also multiple local stores when shopping for supplies. Comparing prices from several locations can seem tedious, but you could potentially miss out on scooping up deals that will save you money in the long run. Moreover, you can find opportunities to stock up on any supplies or materials that you’ll need multiples of.
Speaking of buying in bulk…
Sometimes, things like paint, light fixtures, or tiles can be used repeatedly across multiple properties. If you are in the process of building out your portfolio and are gearing up for buying another property, it could be beneficial—and budget-friendly—to buy these materials in bulk and have them on standby for both a current and future project.
Look to tile/flooring suppliers
Not only will these suppliers let you in on any overstock information, usually leading to cheaper prices, but they show more affordable options for what look you’re trying to achieve. This would also be another opportunity to build a lasting relationship for future projects.
Fix and flip investments are one of the best ways to build a strong portfolio and strengthen your investor experience, however, without a clear budget and some flexibility on where money can be saved, the project can quickly run over. If you’re ready to begin your fix and flip journey and need a private lender to partner with, contact us today.