I was recently at a real estate investors meeting where the topic, price of materials came up. I was hearing some mention that Home Depot’s prices are going up on a variety of products. Inevitably some items go up as the price of petroleum rises but it made me question if investors are getting the best prices? Many of us know there are alternatives to the big orange box but are we realizing the savings? There are many wholesales and discount suppliers in town that would love your business and you might just like their prices and service. If you are regularly buying doors, windows, cabinets, plumbing fixtures and appliances and are interested possibly finding a better deal, check out the following.
Buy and Build
Norandex Distribution Inc (Windows) -(303) 295-1372
Home Clearance Center
Floor and Decor
Ferguson Enterprises (everything plumbing) Brett Bailey 303-739-8000
Home Depot’s Prodesk is also a place where you can realize a significant savings, if you have a material list over $2,500, pay for it all at once and save up to 20% or more. On a project I recently completed, I built my list of materials and visited the Prodesk, on a list that was just a touch over $2,500. I saved about 15%, and a good portion of the purchase was doors and lumber which have minimal mark up. The best part of this deal is you do not have to have a Home Depot credit card to realize the savings. If you have never visited a place like Buy and Build, Buds Warehouse or The Habitat for Humanity store I would encourage you to do so. Surprisingly enough Craigslist can also come in handy for materials, it can be hit and miss but maybe you score a great deal. Just having an understanding of what some of the wholesalers have to offer might change your next project.
There are also great opportunities to hire laborers for prices that help your profitability. I have a gentleman who landscaped a house, tore out soffits and cleaned bathrooms and kitchens all for $10 an hour, he is eager for more work. You have to keep in mind this price requires some supervision, a price like this does not get you a tradesman but a hard working general laborer. As some investors are seeing smaller margins on their fix and flip deals it is a great time to look further into your business to understand how you can be more profitable.