Materials are a huge piece of the total investment into fixing and flipping. If you’re doing the work yourself or hiring it out, the margin on your profit can easily be wiped away by buying the wrong materials, or buying materials that are more costly than necessary. Let’s look at some of the ways you can save on fix and flip supplies.
You Supply The Materials
If you’re hiring a contractor, your deal with them could be that they supply the labor and you supply the materials. If they buy the materials, you’re paying their contractor rate to gather the supplies. You can purchase the supplies (provided you know exactly what to get) and then you know exactly how much they cost, with no markup.
Build Your Own Relationships
If you’re a regular flipper, then you’ll want to get to know the suppliers of materials for kitchens, bath, roofing, windows, flooring, lumber yards, and more. Contractors try to arrange good deals for themselves by building relationships with these suppliers. You can do the same.
Compare Prices at Your Local Stores
For everyday supplies, stalk the aisles of your local home builder’s store and make a list of pricing on key items. Keep these prices in a notebook organized in a way that works for you, alphabetically or by type of item. Compare this list of prices with any sale prices, and shop the store where you know you’re getting the best deal.
Don’t overlook your locally owned hardware stores. They may be eager for your business and will offer you discounts. Most independent stores will meet the advertised sale prices of their competitors, so don’t hesitate to ask if you see a lower price advertised.
Stock Up When You See a Good Deal
Since you’ve flipped a few times and will flip again, you’ve shopped for supplies. When you see a good deal, you can feel safe knowing you’ll use it on another property. Items like roofing material or drywall supplies will be handy to have on hand no matter what.
Ask Paint Stores If They Made a Mistake
Shops that mix paint often make mistakes in their colorations. You can benefit by asking them to let you pick up the mistake gallons, often at a significant savings. They can’t do anything with the paint otherwise.
Buy In Bulk
If you have a favorite tile, paint, light fixture or other product that you frequently use in your flips, buy multiples of those when you can, or when there’s a good deal, and you’ll have items you use on hand when you make a repair.
Do you have other good money saving tips?