The real estate market is slowing down which creates a great opportunity if you want to start purchasing properties to flip for a profit. This cooling off phase will put downward pressure on property values so you should be able to find some really good opportunities. One of the primary challenges that people face when taking the plunge into the world of real estate flipping is being able to cut costs. If you cannot keep the renovation costs down then you will have a hard time generating the profits you want to from the real estate flipping exercise.
Hiring the Right Contractors
There is some work that only contractors can do so it would be wise to begin screening these contractors. When looking for a suitable Toronto plumbing company to help you there are a few things that you have to assess prior to making a decision on who to hire. The initial question to ask when reviewing a prospective Toronto plumbing company is whether they have been operating inside the GTA for a considerable amount of time? You need to make sure that the contractor you do hire is capable of doing the plumbing work you need performed on your property quickly. With each passing day your expenses continue to increase and you cannot sell the property for a profit until all of the necessary renovations including the plumbing are completed. When you have completed your assessment of the prospective plumbing contractors you will need to apply the same approach to the electrical and general contractor.
Smart Ways to Cut Costs
While there is some work that has to be performed by a licensed contractor you can enjoy some impressive cost savings by hiring students to do the basic, menial tasks. By having this type of “grunt work” performed by students your costs will be contained and typically these students are money motivated so they will work hard to get paid.
Another effective way to cut costs is by purchasing your building materials in bulk. When you go to the hardware supplier and ask them for a bulk discount they will usually give you a good deal in hopes of winning your business. While meeting with the manager of the hardware supplier you should find out whether they have discontinued product lines, if they do you can usually get those at a substantial discount but you need to ask.
Something that most people overlook when trying to cut costs is landscaping. With a little TLC on the property you can really improve the curbside appeal of the property. What you will need to do is hire a student who is learning landscape design and get them to come up with a design. These students are eager to work and will come up with creative ideas. By keeping your costs down to the bear minimum you stand a better chance of turning a substantial profit when you eventually flip the property.