5 Tips for Saving Big on Your Next Flip
By Keran Smith | Category: Blog
5 Tips for Saving Big on Your Next Flip
There are many factors that can make your house flipping journey a success. We all want to see the biggest return, but sometimes we can get caught up making simple mistakes that you never knew otherwise. Whether you’re a seasoned house flipper or want to learn how to get started flipping houses, staying frugal is a best practice for everyone. Below are a few simple tips that can save you time, money, and potential headaches while renovating your next property.
1. Research the right contractors
Unless you have all of the necessary skills yourself, you’re likely going to need some help during the renovation process of your flip. However, finding the right contractor is no simple task. Before you begin your search, you need to determine whether you should hire a general contractor or specialty contractor for your project. A general contractor will find the necessary subcontractors themselves, which will save you time, but cost a little more. Having a general contractor provides you with one point of contact, so the responsibility they take on is often worth additional costs in order to keep the project running smoothly. Though if you take the time to find the specialists you’ll need yourself, you could save money in the long run.
After you decide the type of contractor you need, it’s best to begin your search online. Websites like Yelp, Angie’s List and Better Business Bureau are great places to see what other people are saying about the contractor you’re interested in but asking friends, coworkers, and neighbors for recommendations can be helpful as well. When considering a potential contractor, it’s best to know exactly what renovations you will be doing on the property so you can find someone who has the right experience. Once you’ve narrowed your search down to the best contenders, interview and obtain quotes from at least 3 before making your final decision.
2. Buy materials in bulk
Finding wholesale materials can be extremely advantageous when buying your supplies. Materials like tile, faucets, backsplashes, and lumber can be found for relatively cheap if you know where to look. Do some research to find the lowest prices near you – online forums are a great place to consider. Additionally, asking around to friends, colleagues or other real estate enthusiasts in your area where they generally find the best deals can help maximize your profits on a renovation property.
3. Use a rewards-back credit card
On larger purchases like appliances, lumber, drywall and other costly materials, using a credit card where you can earn rewards can yield lots of extra savings. Luckily, there are dozens of rewards-back credit cards to choose from, and many options don’t even have an annual or hidden fees, however, it’s likely that you’ll need a good credit score to get the full advantages of this card. If you know that you’ll be able to pay it off on time, this card can be a great option to consider in your search to add a little cushion to your budget.
4. Improve small details
Sometimes you can get distracted with the bigger picture, but it’s the little things that make it up. It can be a surprise to some buyers how much simple and relatively inexpensive changes like installing crown molding, adding in a backsplash and giving the walls a fresh coat of paint can add to the appeal of the property. Likewise, don’t forget curb appeal – adding potted plants, painting the mailbox, and spreading fresh mulch where needed can really make your property stand out.
5. Choose your renovations wisely
Aspects that may be eye-catching to you, might not be the best integration to add value to a property It’s important to research what kind of renovations that are a selling point for your particular market. For example, adding a pool might seem nice, but unless other similar homes on the market have pools, it could be a waste of money.
Furthermore, kitchens and bathrooms are often the main selling points for a home – when considering your budget, focusing on these important areas in a home instead of on unnecessary add-ons will help bring more appeal to your property.