Cutting Costs Without Cutting Corners

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Cutting Costs Without Cutting Corners

June 23, 2016

By Tarek El Moussa

We’ve all been there—you think you’re getting a great deal until you realize that you only got what you paid for. Sometimes rock-bottom prices indicate rock-bottom quality, too, and this is difficult if you rely on suppliers for your job. A big part of flipping houses is interacting and negotiating with suppliers for the best prices on products.
Because you are investing in the property, your ability to garner a good return is dependent upon minimizing the cost of rehabbing. Too often, though, renovators seek to cut costs by substituting quality materials for budget-friendly alternatives that are simply lower quality. This makes for an unfortunate compromise, but how can you safely cut costs without cutting corners? Here are a few ideas that should make your next rehabbing project a little easier.

Don’t Shy Away From DIY

Anybody who is willing to get their hands a little dirty, can definitely flip a house. The single most effective way to minimize your costs is to pick up on as many skills as you possibly can. Rather than substituting the right plumbing materials for less expensive ones that are less durable, you can cut costs by doing some of the work yourself. Something Christina and I have picked up is basic plumbing and electrical, this way we don’t have to make unwise cuts in the materials we use.

Stick to a Plan

The most expensive item on the menu for flipping houses is often a deviation from plans. If you want to cut costs, you can do so defensively by starting the project off right. Successful rehabbing is dependent upon a solid agenda, so do yourself a favor and create a detailed blueprint timeline for your endeavors. This cuts down on costs that result from unexpected delays and additional labor, and it improves the quality of your workmanship rather than diminishing it. Collaborate with your team and contractors for the final draft of your plans.

Buy in Bulk Whenever You Can

The supplies for flipping houses can add up. Depending on the condition the home is in, you might find yourself needing anything from plumbing and electrical wiring to flooring and paint. You will, however, need a good amount of supplies. If you are like most people taking on rehabbing projects, you might have your eye on some future rehabs, too. Buying in bulk from a manufacturer or distributor can get you some deep discounts, and it gives you supplies for your next project, too. Contact your retailer to see if they offer deals, or if you can, get in touch with the maker directly to discuss an order. You get the items you want with the quality and price you need.

Investing time, energy and labor into a home can be stressful. You want it to look perfect, and you want to see a profit at the end of all your hard work. There will doubtlessly be challenges, though, and the best thing you can do in handling them is to remain committed to your plans. Rather than succumbing to stress, remember that you will be the most successful if you keep costs down. This means you should avoid any compromises made under duress and keep your goals in mind.

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Tarek El Moussa

Tarek and Christina El Moussa have over a decade of professional real estate experience and have been featured in national print publications, online media outlets, and a popular real estate TV show. Tarek is known for his determination to get the job done and doing it right.