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.