Rehabbers...buying supplies/materials - Posted by BR2

Posted by kgreen on July 01, 2003 at 08:11:11:

Bob,
We do the very same thing with Home Depot and Lowes cards. We also have a low interest visa card from our credit union that allows us to charge carpet and any other expenses that we may incurr. I just do not have enough spare room to store anything or the organizational skills to keep tr5ack of it if I purchased things like that.

Rehabbers…buying supplies/materials - Posted by BR2

Posted by BR2 on June 30, 2003 at 17:41:10:

Just wondering if I’m doing the right thing. Whenever I see things on sale (light fixtures, smoke detectors, ceiling fans, etc) I’ll usually buy a few depending on the amount of money I have on hand. Anyway, today I saw tile on sale. Right now I don’t need it but was wondering if you would buy it for the next project or just wait.

I understand I wouldn’t know exactly how much I would need, but my properties normally only take a box per bathroom or kitchen.

Thanks.

Thanks Guys! (nt) - Posted by BR2

Posted by BR2 on July 01, 2003 at 15:22:52:

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Re: Rehabbers…buying supplies/materials - Posted by Bob K

Posted by Bob K on June 30, 2003 at 19:56:19:

I’ve never bought stuff ahead of time - for a couple of reasons; why incur the cost of carrying “inventory”? Plus, I don’t have a lot of space to store stuff.

One of the best ways I leverage rehab costs is HOME DEPOT - I applied for and got the HOME DEPOT charge card. Every purchase of $299 or more is NO PAYMENTS for SIX MONTHS! Interest accrues, but if you pay the full amount off before the 6 month, you make no payments. My last rehab, I had $3500 worth of materials that I put on the card. Did not pay a cent until I sold the property and got the money.

This is a great way to leverage your rehab costs. You can buy all your materials with no money out of pocket! Since I’ve always turned the properties around in less than 90 days, once I walk away from the closing table with the $$$, I pay off the bill. It works out beautifly.

Re: Rehabbers…buying supplies/materials - Posted by RichV(FL)

Posted by RichV(FL) on June 30, 2003 at 18:39:45:

BR2,

I do the same. Since I rehab and have rentals when I see a bargin on something I know I’ll need in the future I pick it up.

You should see my garage. :slight_smile:

But I do have everything organized, and thats the key to it. You dont want to become a pack rat and just have stuff stacked all over the place.

If you find a bargin on tile and need it 3 months down the road you want to be able to find it.

Regards,

RichV(FL)

buying ahead - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on June 30, 2003 at 18:29:40:

BR2-------------

This is pretty much a personality thing. I tend to do this also, if I am buying at an extremely low price, say 1/10 of market value.

However, If you are going to buy ahead, you have to have a good system for storage and finding things later when you want them. If not, it is a waste of time and money.

Tile is such a commodity type item that I would not be tempted to buy ahead. Again, unless the price is say 1/5 or less of market value.

Good investing******Ron Starr************