If you are a real estate investor interested in renovating, you may consider acquiring your own construction equipment. Having access to your own construction equipment lets you control the costs of your renovations, even if you are contracting the work. Owning or leasing construction machinery means that you do not have to pay the markup contractors charge for equipment.
In order to buy or rent construction equipment, you need to learn about building machinery. Network with contractors and real estate investors who take a hands-on approach to construction. If you are interested in renting or buying your own construction equipment, you need to consider:
1. Checking carefully to ensure that all the equipment and supplies you buy are up to code and are good quality.
2. Deciding whether leasing or renting building machinery and equipment makes the most financial sense.
3. Managing your equipment to ensure proper storage, timely on-site delivery and sufficient insurance coverage.
Determine how much contractors would charge you if you owned or rented your own equipment. If the price difference is not substantial, calculate whether renting or owning your own construction machinery and construction supplies would save you money over a few renovations.
Determine the industrial building materials you needContact building inspectors or contractors to determine the type of construction work needed on the construction site. Then, ask for an itemized list or an estimate of the necessary materials and building supplies. This will give you the best idea of what you need to rent or buy for the site -- for example, you might find that a particular job only requires one truck crane.
Decide whether to rent or lease your industrial building materials and other needsOnce you have done the math, it should be simple to determine whether you get a discount by having your own building machinery and equipment. If you can realize significant savings by only paying for labor, you then need to decide whether to rent or buy your construction equipment. If you only do renovations once in a while, construction equipment rentals are optimal, especially if you can get insurance and transportation included in the cost.
Look at used construction equipment for sale or investigate renting through your contractorYou can buy heavy construction equipment and used industrial building material online, often at good prices, but by shopping this way you buy sight unseen. Unless you are very knowledgeable about equipment and building materials, it is better to buy from a dealer or via auction. Contractors are often a good source for used construction equipment.
- Most contractors rent their construction machinery to improve cash flow and to ensure newer equipment. You may be able to reduce labor costs and the costs of equipment by working with other investors to share equipment expenses. If buying, just remember that storage costs as well as insurance are your responsibility. If these additional costs prove too much, consider leasing.