Is it better for contractors to provide materials vs investor?

Is it better for contractors to provide materials vs investor?

Atlanta, GA · Member since 2016 · 21 posts · 0 votes

Hello all,

Currently doing a medium scale renovation on a newly acquired rental and it crossed my mind to asked here- to find out what has worked best for fellow buy and hold investors- Is it better for contractors to provide materials vs the investor? All answers are appreciated especially from experienced investors with several rentals.

Thanks,

Festus

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  • Real Estate Investor · Salt Lake City, UT · Member since 2009 · 11 posts · 1 vote
    6y

    If you want more responsibility that material isn't wasted/stolen, for a little reduction in price then buy material yourself.  If you want contractor to do everything and take more responsibility then make contractor buy everything for a bit higher cost.  Generally to get any type of warranty the contractor will have to both provide and install material.  Flooring, air conditioners etc.

  • Flipper/Rehabber · San Diego, CA · Member since 2020 · 33 posts · 20 votes
    6y

    This depends on how you leverage your time. Do you have time to measure and order the right amount of material? What about ordering material that may or may not be in stock?  How confident are you that you could order the right plumbing or lighting fixtures that match the hardware you've got in the walls?   Are you concerned that delays in receiving materials could delay your contractors construction timeline?  Is it the best use of your time to find, order and deliver materials, or would you be more productive letting the pro do what he does, and you spend the time finding your next deal!?  

  • Realtor · Edmond, OK · Member since 2019 · 123 posts · 79 votes
    6y

    @Greg Bennin is right. When I first started I would buy all the materials for a rehab and then drop it off at the property that needed work. That only lasted two jobs. It became a hassle and I decided to just let the contractor charge me a bit more. The amount of money I ended up saving was not worth the time I had to invest. 

  • Stephen J DavisBusiness Member
    Rental Property Investor · Houston, TX · Member since 2017 · 529 posts · 467 votes
    6y

    Let them do it all as a rule. I have personally only provided the appliances a few times over the years. Take the time saved and  find you next deal.

  • Atlanta, GA · Member since 2016 · 21 posts · 0 votes
    6y
    Thank you all for your inputs. Obviously sounds like allowing the contractors to provide the materials, if the price difference isn't much is a better route to go
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