Using 100% Home Depot sub-contractors for a home rehab
Realtor · Bedford, TX · Member since 2015 · 172 posts · 55 votes
Has anyone ever done a full rehab using The Home Depot or Lowe's sub contractors and materials?
In my newness to house flipping, I find this method to be more reliable than finding a GC on Craigslist. I don't have an immediate or extensive list of subs in my area whom I know and trust. I find a bit of comfort knowing that subs working under big box stores like Home Depot can't just skip town with my money and leave the work unfinished. I assume I'd be paying the subs through the store. Plus, I'd have a "boss" to report to regarding the work done by each sub contractor and therefore, accountability.
What's your perspective, experience, or words of wisdom in this regard?
PS. My long-term goal is not to work through Home Depot on every project. Maybe my first several until I get the hang of it and develop more relationships in my market.
@Ashley Wolfe, if you decide to go the route of using HD for work, you may want to build some rapport with the store manager - relationship goes a long way. Don't be fooled however that HD won't run off with your money. If you have a dispute, it may be very difficult to seek resolution as you'd be dealing with a behemoth of a company. Earlier this year, I was consulted on a quartz countertop installation they performed for a retail customer. The installation was in direct contrast to the manufacturer's instruction (e.g., seams placed over unsupported locations, not using installation clips for the sink mounting, etc.). I provided the client with a letter, the manufacturer's installation instructions, and photographs documenting the situation and they in turn took the matter up with HD. In a direct conversation with the Kitchen & Bath Manager for HD, he verbally agreed that the work was improper, but he was overruled by someone up the food chain and the client's request to have it corrected was denied. Apparently the installer was having some serious issues, as I was told by HD they took them off of their approved vendor's list and when I called the installer myself, they were closed indefinitely. Yet this did nothing to sway HD to step up to the plate and make the customer whole. Keep in mind, that HD is a retailer, not a contractor. Their business relies on volume and turns (of inventory). Be aware if it applies, if your state has any consumer protection laws about contractor sales, keep in mind that protections afforded may not apply to a retailer like HD if you solicit them in their place of business.
I concur with @JD Martin, go meet with the store and sales managers at your local professionally oriented supplier and build relationships with them.
As for going to the big box store ProDesk early in the morning, (or as @Brandon Stevens mentioned about gathering names from the parking lot), it can't hurt. But in my opinion, you're far better off going directly to the professionally oriented supplier. Food for thought... save for the day-job handyman or contractor, which type of contractor would you want working for you... the guy who picks-up stuff on the way to the job, the guy who picked-up the material he needs tomorrow on his way home today, or the guy who has the material delivered to the job site? Personally, if I'm paying a contractor to do a job, I want his butt on the job, not out shopping (and rest assured that you're paying for that time one way or another). This mindset is akin to what @JD Martin stated about sorting through lumber at the box stores - the guy who is willing to spend his time culling a hack of lumber to pick out the good ones doesn't value his time and therefore, is unlikely to value yours. The price for a few extra studs pales in comparison to the cost of the lost time and progress.
You may very well have success as you define it with a HD installer... I know a few who do it as they are small owner/operator guys who hate the sales and marketing process and so are willing to work for the rates HD pays, or they are the owner of a company utilizing very low cost labor and working on volume. They're happy to have a funnel of work orders coming to them on a regular basis and so it's worth it to them.
And regardless of how you go about finding your contractors, I encourage you to be sure that they are all properly licensed and insured - HD may have their own license, but unless the installer who arrives on your job is an employee, they are not likely to be covered under HD's license.
It is not a bad idea, on contractors that do not have to state license. For example, electricians and plumbers are simply more expensive if you go with Home Depot. The state already requires them to do most of what Home Depot would require. Carpet installers on the other hand might be ok at Home Depot.
Make sure you always tell Home Depot employees you are working on a flip. They have lots of methods to reduce the costs. For example, you normally want carpet with a two week wait because it is about four times better value.
In North Texas, I would not buy wood or fixtures at Home Depot. Wood should come from a real lumber yard. I like to get fixtures from Restore.
Great suggestions, thank you. I'll take note of Restore.
Contact the specific material suppliers(tile company, roofing and siding company, window company, kitchen show room, carpet show room, etc) in town and ask them who they recommend as contractors. They have a business to run and they will know the serious big players that are good in their field. They are not inclined to give bad contractors because it would come back to them.
Will do. That's a great idea, thank you.
Using the subs from home Depot or Lowe's is really hit or miss. When I had carpet installed in my house I took a chance and went with Lowe's because they were significantly cheaper than a local flooring place. These guys really went above and beyond and years later the carpet still looks great. On the other hand, I needed my sliding glass door replaced and I found a local company through Angie's list to do it for cheaper than the box stores and offered a better product made by a regional supplier. In fact I highly recommend Angie's list, but don't call the guys with 100 A+ reviews, they will be expensive and busy because it's most likely a company with employees and fancy new trucks. Call the guy with 5-10 A+ recent reviews instead.
For a full fledged flip I really would try to find a reputable general contractor. Yes I know that's like trying to find a diamond at the beach! It really amazes me how many contractors don't even answer their phone or call you back. Some of the people here mentioned going to the pro desk first thing in the morning and see who's there, these are not the 'slacker' contractors. As a woman I would NOT recommend doing this, I hate to stereotype but most contractors treat women very differently than men. Meaning they will quote you a much higher price for a job than a guy asking for the same quote because they think you don't know anything about construction. This is nonsense, listen to the podcasts and you will hear from some very successful flippers who are women. Just hang out in the parking lot and take down their contact info from their truck. Dont bother if the truck looks like it just rolled out of the dealership and costs $50k, these guys at least in my experience, will always cost more than the guy with the beat up truck. And usually the quality of the work is roughly the same.
Using the subs from home Depot or Lowe's is really hit or miss. When I had carpet installed in my house I took a chance and went with Lowe's because they were significantly cheaper than a local flooring place. These guys really went above and beyond and years later the carpet still looks great. On the other hand, I needed my sliding glass door replaced and I found a local company through Angie's list to do it for cheaper than the box stores and offered a better product made by a regional supplier. In fact I highly recommend Angie's list, but don't call the guys with 100 A+ reviews, they will be expensive and busy because it's most likely a company with employees and fancy new trucks. Call the guy with 5-10 A+ recent reviews instead.
For a full fledged flip I really would try to find a reputable general contractor. Yes I know that's like trying to find a diamond at the beach! It really amazes me how many contractors don't even answer their phone or call you back. Some of the people here mentioned going to the pro desk first thing in the morning and see who's there, these are not the 'slacker' contractors. As a woman I would NOT recommend doing this, I hate to stereotype but most contractors treat women very differently than men. Meaning they will quote you a much higher price for a job than a guy asking for the same quote because they think you don't know anything about construction. This is nonsense, listen to the podcasts and you will hear from some very successful flippers who are women. Just hang out in the parking lot and take down their contact info from their truck. Dont bother if the truck looks like it just rolled out of the dealership and costs $50k, these guys at least in my experience, will always cost more than the guy with the beat up truck. And usually the quality of the work is roughly the same.
Thank you. Great suggestion about Angie's List!