What to Do When You Run Out of Money for Your Renovation Project
Renovating a property can be pricey. Whether you’re remodeling your own home or working on a property you bought to flip, a lot of money can go into getting the work finished. If you have large amounts of work to do and you’re getting it done in stages, you can even end up running out of money before you’re finished. Even if you budgeted properly, unexpected expenses can arise and some things can be more expensive than you planned. Running out of money midway through your renovations doesn’t have to mean you have to stop. There are options that could be helpful.
DIY the Rest
One of the most expensive parts of renovating a property is paying for the labour. Without that, the cost of materials can be fairly affordable, depending on the work you want to do. If you’re running low on cash, doing some DIY work could be an option. Of course, you don’t want to go into this lightly. You want the results to be good enough to live with, and messing up could end up costing you more in the end. So be careful about what you choose to DIY and make sure you know what you’re doing.
Take Out a Loan
Borrowing money might be your first thought if you need more money to complete renovations. There are various ways you can borrow money so you have what you need to get the work done. You could look into real estate investor lending if you’re renovating an investment property. A bank loan could be a possibility, or you might consider using a credit card to pay for some things. Borrowing money from family or friends could also be an option but you have to make sure there’s plenty of trust in the relationship before borrowing from people you know.
Pause the Work
If you’re not on a tight timeline, sometimes the best option may be to wait and try to save the money that you need. This can work out well if you’re happy to wait a while and complete the work slowly. If most of the work is just cosmetic, it won’t matter too much if you have to wait a while to finish it up. You won’t have to repay a loan and you can avoid doing any DIY that you might not be confident about. However, more serious structural renovations might need to be completed more quickly.
When you’re not sure if you can afford to complete your renovations, you might want to consider selling the property. Obviously, this might not be a decision you want to make for your own home. However, if you are renovating an investment property, it could be a way to avoid having to do the rest of the work and possibly still make a profit. Another investor or someone looking for a new home could be happy to buy it and finish the renovations.
Running out of money before your renovations are finished is stressful, but there are options you can consider to get the result you want.