Construction Equipment

Buying or leasing your own construction equipment can save you money on real estate investment
By A Antonow 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 need

Contact 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.
Try: Machinery Trader lets you search for equipment for sale and rent. Estimate your renovation costs with the Home Renovation Estimate calculator. NES Rentals lets you rent specialty construction equipment.

Decide whether to rent or lease your industrial building materials and other needs

Once 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.
Try: Truck Lenders has an array of construction equipment and materials for lease. RSC Rentals allow you to rent equipment, construction supplies and machinery from more than 500 local dealers.

Look at used construction equipment for sale or investigate renting through your contractor

You 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.
Try: Ritchie Bros. Auctioneers is a good place to bid on used construction equipment online. Visit the Industrial Classifieds for more used equipment and supplies.

• 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.