Flippers: What’s Your Backup Plan If a Deal Needs More Cash Than Expected?

One thing I’ve noticed with fix-and-flip projects is that the original budget doesn’t always stay the original budget.

A rehab can uncover unexpected repairs, materials can cost more than projected, or another opportunity can come up while most of your cash is already tied into a current project.

That’s why I think having access to business capital before you need it can be just as important as finding the deal itself.

Depending on the business and borrower profile, that could mean:

• Business lines of credit for flexible access to capital
• 0% APR business credit cards for short-term project expenses, with a strategy for when the promotional period ends
• Revenue-based funding for businesses with consistent revenue
• Term loans or other business financing for larger capital needs

The goal isn’t necessarily to use financing on every deal. It’s having additional options available so one unexpected expense doesn’t force you to slow down a project or pass on the next opportunity.

For the experienced flippers here, what expense has surprised you the most during a rehab?