Flippers, Save Money on Remodeling Expenses with these Tips

As a house flipper, being smart about where and how you spend money on your remodels can make a huge difference to your bottom line. If you use a general contractor for your flips, the easiest thing is to rely on the contractor to purchase all the necessary supplies, but this is also probably the costliest option. Here are our top seven house flipping tips for saving money throughout the remodeling process:

• 1.Buy like a builder.

The occasional trip to Home Depot or Lowe’s makes sense for last minute supplies and small items. But most of your materials should come directly from distributors and manufacturers. Start building relationships with the businesses that make the flooring, the windows, the cabinets, what have you. Buying directly from the source will save you big bucks.

You should also buy in bulk when possible. If you like a particular style of flooring, you’ll almost certainly use it in more than one flip. Plan for multiple house renovations at a time, and you’ll save both time and money.

• 2.Look for discontinued and slightly damaged items.

A lot of “defects” can be easily fixed or cleverly covered. Keep an eye out for materials that are no longer being made. You might also be able to find spare materials getting thrown out by distributors that will suffice for small projects in your remodel. Hunt for deals whenever possible.

• 3.Put material purchases on reward credit cards.

If you game your credit card usage well, purchases that you would make anyway for your renovations could make your next international vacation completely free, thanks to reward points. Check out resources like Mr. Money Moustache for the latest info on credit card deals. You can prioritize cash back or rewards that you’ll find useful in your personal life – whatever makes the most sense for you.

• 4.Be smart about your house flipping loans.

Before you make any material purchases, you could lose thousands on a bad loan. Don’t waste money on added fees or extra points that you could avoid by shopping around a bit. You should also look for house flipping loans that build in cash flow for your renovations so you don’t get strapped in the middle of a project.

• 5.Take advantage of free planning tools.

If you have enough know-how, you can make use of free design apps for many of your renovation plans rather than hiring costly architects or drafters. You can also use free consulting services from distributors and places like Home Depot if you turn to them for some of your supplies. These are often helpful for kitchen and bathroom design, in particular.

• 6.Invest in your own power tools.

If you do work on flips yourself, a few quality power tools will save you time and money on every flip. Some great tools to invest in include a power washer, a screw gun, a nail gun, and a power roller.

• 7.Rent your own dumpster.

Contractors often add in hefty fees for clearing out the waste of their projects. If you rent your own dumpster (which is surprisingly affordable), you can cut out those fees for each contractor.