Navigating Material and Labor Shortages

How to Navigate Material and Labor Shortages for Real Estate Flipping in 2022.

Right now, the construction industry is facing widespread material and labor shortages. From neighborhood developers to individual home flippers, we are all feeling the impact. So how can a home flipper navigate the current shortage landscape for profitable home flip projects in 2022?

We have a few ideas that will help you plan successful flips as the construction material market seeks a new normal.

 

Plan Extra Time for Each Flip

If you know there will be delays and shortages, plan ahead. Give yourself more time for delayed shipments and a little budget room to make alternate plans, as needed. This way, setbacks are not a disaster on your timetable.

 

Source Local Materials & Fixtures

The construction material shortage mainly relates to materials that come a long way over land or from overseas. So source local instead. Find a few great local suppliers for lumber, millwork, and stone. You might even pick up your own materials from local sources instead of waiting for them to be delivered. This way, you don't have to wait on freight delays and driver shortages.

 

Don't Get Your Heart Set on One Product or Piece

Try to avoid starting a flip with the idea that you will have one specific type of stone or fixture that might not be available. You don't absolutely need Italian White marble for the countertop, you need a new countertop that can be installed on-time and buyers will appreciate. You don't need this specific light fixture from a New England supplier, you need a good light fixture that suits the home's style. 

When you're flexible, you can find what you need based on what is available and on-time.

 

Work With Your Local Contractors & Supply Chain

You're not alone in navigating the material and labor shortage. Everyone in the construction trades nearby are in the same boat with you. So work together. Consult with your contractor teams and suppliers to find out what is possible and the solutions they're finding to work around the shortages and shipping delays.

 

Secure Your Plan & Suppliers Before Buying the Flip

Last but not least, consider building a comprehensive flipping plan before closing on the house. Get confirmation from your suppliers and teams that they have what you need locally and that all your materials will be available when you need them. This way, you save yourself from unpleasant surprises mid-renovation.

 

The current material and labor shortage doesn't have to slow your home flipping business plans if you plan for those shortages and delays ahead of time.

Sincerely,

Remodeling in 2022

 The Smartest Renovation Moves You Can Make for 2022

The housing market is a revolving door of change, and what's considered valuable or popular now may not have been just a few years ago. Simple days of basic renovations are long gone as buyers demand upgrades based on solar energy, smart technology, and eco-friendly options.

If you're investing in properties to flip in 2022, the high demand of this year's market could net you a pretty penny. However, using your money to add the most valuable renovation options could provide a boost to the property that might surprise you. The following article outlines upgrade options with the most value heading into the new year.

1.      Kitchen Remodeling

A kitchen remodel is one of the best ways to add value to a property. There are multiple options for upgrades and a lot of room to add in-demand options like smart home technology. Consider the following additions to add maximum value to your home:

· Smart Refrigerator

A smart refrigerator equipped with a camera that allows you to look inside the storage area can be a great addition to an outdated kitchen.

· Smart Stovetop

A smart stovetop or oven allows you to control your appliance from anywhere in the home via smartphone.

2.      Bathroom Upgrades

Upgrading your bathroom can make the space in your home more enjoyable and visually pleasing and add value to your property. If you're on a budget, you can invest as little as $3,000 and still make significant changes to your bathroom.

3.      Smart Home Automation

Remote security cameras and voice-activated thermostat controls are just a few smart home options you can add to your property for maximum value. These in-demand technology additions can boost your home's value by up to 35%, according to some reports.

A 2018 survey conducted by Coldwell Banker reported that 77% of homeowners were more interested in homes that already had smart technology installed. Choosing to add these upgrades can put the extra cash in your pocket you need from your investment.  

You don't have to break the bank to renovate or make changes in your home before listing to get more value out of your property. By paying attention to trends making additions that are in high demand, you can budget your way to a maximum return.  

Downsizing Your Rental Property Portfolio

 How to Start Downsizing Your Rental Property Portfolio.

There are many reasons you may want to start downsizing your rental property portfolio. You may find out that you got in over your head, and you are struggling to get the day-to-day tasks done. You may also want to start thinking about retiring, so you can enjoy your golden years. Furthermore, you have made enough money with your real estate business that you can easily think about working at a more relaxed pace, if you need to work at all! 

So, how can you start downsizing your rental properties? 

You may want to sell some of your properties outright. If the real estate market is in good condition, you may be able to sell some (or all of your properties). Though you will lose your monthly income, you also won't have to worry about your rental properties anymore. 

Another option that you may want to consider is to hire a property management company. If you want to continue to make money off of your rental properties, without doing the work, you may want to hire someone to take care of them for you. You can pick and choose what tasks you want them to do, and what you will continue to do. You may also decide to hand off all of the responsibilities. Though you will end up paying for these services, you will still have an income, without all of the stress and work that goes into maintaining your business.

You may also decide to do this if the real estate market is too low. You are going to want to make a profit when you sell your real estate properties. If you will end up losing money, it might make sense to hold on to them for a few more months or years until the market improves. 

If you decide to slowly get out of the real estate business, you should do so smartly. Take a look at all of your properties and how they have done for you over the years. You may have some properties that have given you nothing but problems since you bought them. Some of your older properties may require a lot of repairs and maintenance to keep them habitable, while some of your newer properties may require hardly any upkeep. You may also want to think about which properties bring in the most income. These may be worth keeping. You may prefer to get rid of the homes that are only making you one thousand dollars a month, instead of ten thousand. 

It can be hard to start downsizing, but you may want to work less and enjoy your life more. If the real estate market is good, you may want to start selling off some of your properties. If not, you may want to look into hiring a property management company. They will be able to do all of the work so that you can enjoy the profits.