Flipping a house can be highly lucrative, and many investors will make tens of thousands of dollars per property in net profit through this activity. However, with a flip, time is money. The longer you hold onto a property, the greater your utilities expenses, property taxes expense, interest charges from a loan and more may be. These expenses will directly eat into your profit margin. There are a few steps you can take at the beginning of the flip process to speed things up and to get the property sold as soon as possible.
Get Your Finances in Order Ahead of Time
One of the primary factors that can slow down a flip in progress is lack of funds. You may need access to a considerable amount of cash on hand to pay for materials, contractors, permits and more. When cash is not available, progress on your project may come to a screeching halt. Before you get started with a flip project, create a reasonable budget for all aspects of the work, and line up all financing ahead of time.
Order Supplies Early
Another common delay associated with a home renovation project is a delay in the delivery of supplies and materials. For example, the tile that you need for the bathroom floor may be on backorder. Until it arrives, work on the bathroom may be on hold. Order all supplies well ahead of time. Plan to keep them in a garage or a storage unit until needed.
Hire a Waste Disposal Company to Haul Waste Away
You may not realize it, but waste can also slow down you and your team. Demolition can create piles of waste, and you must have somewhere convenient to store this waste until it is hauled away. Additional waste from materials and supplies can be generated throughout the process. This waste can impact your workspace, the delivery of goods and more. A smart idea is to hire a waste disposal company like Tri-State Disposal that can assist you with the removal of waste. For example, you may schedule a dumpster rental, and the disposal company may empty the dumpster on a regular schedule until the flip is completed.
As you can see, there are several factors that can easily slow down your work in progress, and there are simple ways to overcome these potential challenges. Now that you are more aware of common flip issues that investors run into, you can plan around them for a faster overall completion time.
