As a fix and flip investor, you are in a unique position to reap the benefits of a frugal renovation strategy for your investment properties. Unlike private individuals tasked with the job of renovating their own homes, you can tap into substantial savings by having a "buy in bulk" mentality.
This is reasonable, considering that the typical fix and flip investor achieves success by continually working on new projects over a period of time. So, if you have a storage space where you can keep building materials, fixtures, and furnishings, read on for six great ways to save on renovations.
1) Befriend a contractor. People hiring a contractor often ask that the contractor remove any extra materials from their premises once work is completed. Typically, a contractor can make use of these odds and ends on other projects. But occasionally, there may be some materials that the contractor might be happy to let you have for little or no money if you are willing to haul it away. For instance, maybe there are a few surplus boxes of tile that would work well in a small bathroom renovation, but that are not enough for a larger project. Having a contractor as a friend might save you from having to pay full cost for building materials.
2) Check out your local recycling center. If you have never toured your local recycling center, you might be surprised at the type of materials you can find there. People often throw out any excess materials from building projects because they lack space to store it. Becoming a "picker", you can find some diamonds in the rough. All that is required is to train your eye to see the potential and re-purpose the materials you find.
3) Find the nearest Habitat for Humanity ReStore. If your local recycling center has slim pickings in the way of building materials, check out your nearest Habitat for Humanity ReStore, a nonprofit home improvement store and donation center that sells new and gently used furniture, home accessories, building materials, and appliances to the public at a fraction of the retail price. Not only will your wallet thank you, but also the money you spend at a ReStore will help build homes and hope for disadvantaged families in your community. What could be better than that?
4) Check out a building supply auction. If you have adequate space to store building materials that you know you will be using on several projects, going to a building supply auction might net you substantial savings. Rock bottom prices and a variety of materials available make auctions well worth a look for the rehab investor.
5) Shop at your local home improvement store. Make it a habit to peruse your local home improvement store on a regular basis. Be sure to check out sales, as well as clearance aisles. Often, you can find fixtures, lighting, and flooring for bargain basement prices in the clearance section of the store, especially in the case of recently discontinued items. Appliances also can be purchased at discounts when item numbers are discontinued.
6) Invest in a trailer or truck. Eliminate delivery charges by purchasing a small truck or trailer to transport your finds to your storage area. The cost of delivery can be quite steep, and can rapidly add up if you are not vigilant. If you cannot handle moving everything yourself, hiring a person to help you for a couple of hours may still be less of an expense than paying for professional delivery.
With a little bit of forethought and a storage space that can handle the load, you can maximize your renovation dollars by making wise purchasing decisions and stocking up on building materials you know you will need for all your projects.
If you would like to know more about fix and flip investing strategies, please contact us. As hard money lenders with years of experience in dealing with rehab properties, we will be glad to help you find success with your real estate investments today.
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