Remodeling even one room in a home can be a big project. Especially if you need to renovate an entire home or investment property, it is important to be as prepared as possible before diving in. This can be immensely helpful when you’re trying to secure a loan from private money lenders. Before you apply for a loan, think through these things.
1. Consider Maintenance
While stark white grout, flat paint or marble countertops may be visually appealing, they can also be time consuming and expensive to maintain. This is important to consider not only if you’re living in the home but also if you’re renting it out. If your expensive marble countertops get stained by renters, you may end up spending even more money to replace them.
2. Expect the Unexpected
Many people think running into major issues with things like plumbing or electrical systems only happens when you remodel older homes. In truth, even newer homes may have hidden issues that can become big problems if not fixed quickly. When you use investment property financing, it can be a good idea to borrow more than you think you’ll need for the renovations. That way if you run into anything unforeseen, you’ll still have the resources to complete the remodel.
3. Know Your Needs
As you plan your budget, try making a list of everything you need and a separate list of what you would like. That way, if something you need ends up being more expensive than you realized, or you encounter other financial setbacks, you can just pick something from the non-essential list to cross off. For example, getting a granite countertop is probably a better investment than upgrading the hardware on your cabinets.
Embarking on a remodeling journey takes courage, whether you’re new to the renovation process or have been through it many times. Using hard money loans in San Diego can provide you with the funds you need to ensure your project turns out the way you envisioned. Start planning today and impress private money lenders with your preparation.