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.