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18 May 9 Ways to Save Money on Fix and Flip Repairs

The success of a fix and flip investment depends entirely on your ability to sell the rehabbed property at a price that not only recuperates your total investment but also leaves you with a profit. However, if you’re new to the real estate business, it’s all too easy to spend more than necessary on fix and flip repairs —and that can drastically reduce the amount of money you can make. Avoid that mistake by keeping the following eight tips in mind:

Fix and Flip

1. Stick to your budget

Assuming you used financing to purchase the property, you’ll have allocated a portion of the loan or secured an additional funds to cover the costs of fix and flip repairs. That sum should be based on the pre-purchase home inspection, as well as a contractor’s assessment of the work that needs to be done and the costs of labor and materials involved. If you use this assessment as a benchmark for each part of the rehab project, you’ll avoid going over budget.

2.   Know what things should cost

You should have a general idea of the cost of plumbing, electrical, roofing, siding, painting and flooring projects BEFORE you get prices from contractors and BEFORE you submit an offer on a project.    If you want to know some tips, join us on June 13, 2019, for our Investor Meetup as we will be discussing how and where to price out renovation projects for your single and multi-family flips / holds.

3. Use subcontractors

Subcontractors’ rates can be as much as 10 percent lower than contractors’ rates. Make sure to hire subcontractors who are licensed, insured, and come well recommended. In addition, draw up an agreement in writing that clearly delineates each party’s rights and responsibilities.

4. Save on materials

Always handle the ordering, purchasing, and picking up of materials yourself. If you let your subcontractors do this, it can cost thousands in extra time, plus, they’re unlikely to do the footwork to keep costs as low as possible. Also utilize all delivery and pricing assistance that your vendors offer, both Home Depot and ABC Supply will be speaking on this at the meet up on 6/13.

5. Special Offers

Look for special offers, loyalty savings, and member or seasonal discounts at regular hardware stores. You can also get volume discounts if you buy at large scale suppliers. Again come to the meet up on 6/13 so Home Depot and ABC Supply can show what they have to offer!

6. Shop at Outlets

One way to pay much less for high-end materials is to shop at outlets for anything from paint to carpet to appliances. Since they mainly sell remnants, you can get significant discounts on anything from hardwood flooring to stainless steel appliances.

7. Salvage Yards

Finally, don’t forget to visit architectural salvage yards to find unique items that add a touch of character to a home, such as ornate fireplaces, stained glass windows, and antique doors.

8. Refurbish

Not everything that’s broken, scratched, or dated needs to be replaced. Refurbishing can be a cost-effective alternative with often surprisingly good results. Think of painting dated kitchen cabinets and replacing the handles; re-using wood from old doors for wide window seats or yard furniture; and having the enamel on sinks, toilets, bathtubs, and showers refinished.

9 Get hands-on

The costs of labor are high, so fix and flip repairs you can do yourself saves money.

Moreover, when you’re at the property, the contractors can come to you directly if they run into problems, which can help prevent delays.

If you keep these eight tips in mind, you can greatly increase your chances of not only staying within your budget, but even finishing below it—and that in turn will increase your profit when you sell the property. And with all the money you’ll save and earn, you can start looking for your next fix and flip opportunity.

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12 Jun How to Get the Most When Buying Real Estate

Do you really think that you know absolutely everything about purchasing real estate? With so much to learn about real estate, even veteran real estate buyers are looking for new information. This article can help you by providing tips you may use when you’re in the market to buy real estate.

When looking at residential/owner-occupied properties, make sure that you are looking for a home that will adequately fit your family if you are planning on having children or already do. You should also pay special attention to safety issues, particularly if the house you are viewing has a swimming pool or stairs. Buying a house from people who raised children in it should guarantee you a safe house, but it doesn’t so you need to check for possible issues.

If you want to purchase a new home, do some research into the neighborhoods of any residences that you are interested in. Lots of information about neighborhoods can be found online. Google, Zillow, etc.  Even extremely tiny towns have information available online. Consider the population, unemployment and salary margins before making any purchase to assure that you have a profitable future in that town.

You can often find bargain prices on homes requiring a large number of repairs and improvements. This saves you money on your purchase, allowing you to invest extra capital into fixing your home at your own pace. In addition to customizing the home to your tastes, you are creating valuable equity each time you make an improvement. Be sure to look for what a house could be, not what it currently lacks. It may be that your ideal home lies beneath some ugly wallpaper and dated cabinetry.

When deciding to purchase a large and commercial piece of real estate, make sure you get a trustworthy partner, especially if you are a new investor in this type of property. This can make it easier for you to get qualified for the loan needed when buying the property. You may need a co-signer to get a down payment, and additional credit to buy some commercial real estate.

When looking to buy an investment property, be willing to consider homes that need repair, rehab, or remodeling. As you finish the work, you will be rewarded with an immediate increase in the value of your home. If done correctly, the value will rise more than your initial investment, and you will either be in a cash flow positive situation if you plan to hold the property, or a windfall if you plan to flip it.

It is currently a seller’s market with values that seem to keep rising.  Inventory is extremely low, driving pricing higher, but if done correctly it is still a great time to purchase for both owner occupants and investors.  As long as you buy correctly, you will be protected from future market corrections.

This article should have given you some great tips that will really enhance your real estate buying experience. Smart networking is always a very beneficial practice in the business of buying real estate.

Let the experts at Summit Capital Management show you what end-user/owner occupants will be looking for.  Let Summit show you how to invest in real estate flipping and holding properties.  We are much more than a private/hard money lender, we are your real estate investing partner!

Good Luck!

www.summitcapitalmanagement.net

info@summitcapitalmanagement.net

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08 Sep Summit Capital is in the News

We are pleased to announce that Boston Voyager has written an article about Summit Capital!

It highlights how Chris and Mark started the company and goes into what they think the future holds for us.  You can read and exert below:

Today we’d like to introduce you to Christopher G. Gallo.

Mark and Chris were High School friends who lost touch during the college years but got reacquainted by a mutual friend who noticed that they both were doing similar projects in Real Estate Investment and Development. Mark and Chris met for a coffee and noticed that they had very similar goals, values, and business models and thought they should try doing a deal together. One 2 family in Brockton on Denton St turned into a 100+ building 400+ unit Real Estate Portfolio servicing the Boston South, South Shore, South Coast markets. They were constantly raising capital for their deals and using many sources of banks, private investors and private capital to do so. They realized that there was an underserviced Investor (them) that needed access to capital to fund real estate deals, and many times banks would either not be interested or move too slowly for these investors….Continue reading at bostonvoyager.com

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