The secret is OUT!

Innovative Strategies
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The secret is OUT!

Loc R.
Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes

I've kept this to myself for a while, simply because I didn't want too many competitors in my area. Well, now it seems like the word is out, so I'm going to share this with BP nation so that you guys in other parts of the country can benefit.

What I have been is buying Home Depot or Lowe's gift cards or store credit for cash. AT A DISCOUNT. I typically pay anywhere between 70-82% of face value. This can represent huge savings to your bottom line.

What I'll do is look for people selling them on Craigslist. From there I'll meet them at the store to verify the amount on the card. BE SURE THAT THE PIN ON THE BACK OF THE CARD HAS NOT BEEN SCRATCHED OFF.

The other thing to do while you're surfing Craigslist is to look for Lowe's or Home Depot "10% off" coupons. They typically sell for $2 each. As you can imagine, combining the discounted gift card idea with 10% coupons leads to HUGE savings.

Another idea that I have implemented is to buy a Macy's $500 gift card for say, $350-$380, then go back to Macy's and trade it in for ten (10) $50 gift cards (or 20 $25 gift cards). Now your birthday, wedding, and Christmas gifts are a little less expensive!

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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y

This is a great startegy, but you must be careful as there are scam artists out there. make sure they do not get the cash until you verify the card has the balance stated.

As for the 10% off coupons, these are usless to me as I get a minimum of 10% off without any coupons and typically, on a large order at the commercail desk, I have them bid the invoice out and get 15%-20% or more off my bill.

It pays to be a good customer and form a relationship with the head at the commercail desk. I can buy $100 worth of stuff and still have her give me 10% off without coupons.

Maybe I should be saving my 10% off coupons and selling them to you all for a few dollars - I could use some beer money!

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  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    I've seen the Home depot cards numerous times as well as the 10% savings coupons. It is a great way to save money on your building materials.

    0Reply
  • Account Closed
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    15y

    you can also go to a post office and say you just moved into town..in the welcome package will be a 10% off coupon for lowe's..i pick up at least one or 2 a week from different post offices in my area :)

    3Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    15y

    This is a great startegy, but you must be careful as there are scam artists out there. make sure they do not get the cash until you verify the card has the balance stated.

    As for the 10% off coupons, these are usless to me as I get a minimum of 10% off without any coupons and typically, on a large order at the commercail desk, I have them bid the invoice out and get 15%-20% or more off my bill.

    It pays to be a good customer and form a relationship with the head at the commercail desk. I can buy $100 worth of stuff and still have her give me 10% off without coupons.

    Maybe I should be saving my 10% off coupons and selling them to you all for a few dollars - I could use some beer money!

    Podcast Guest on Show #130
    4Reply
  • Mitch Kronowit
    SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
    15y

    Don't forget to join Home Depot's Paint Pro Rewards program for 10% off 1 and 5 gallon buckets of select paint.

    Not sure if Lowe's has a similar program.

    0Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    I heard about this today from Greg at a meeting with him in Ft Worth. Has anyone had success buying these cards in bulk from anyone? It the dollar amount high enough to fund a large portion of a rehab or new build?

    0Reply
  • Ed O.
    Investor · Statewide, MO · Member since 2011 · 814 posts · 425 votes
    14y

    In order to protect myself on these.... somewhat shady folks, I go into the store, and pick my materials and explain to them that as soon as I use their merchandise credit to pay for the transaction, I will put the cash in their hand. Every time, the seller has been fine with it. With a receipt, you can always return the merch and get a fresh, 100% safe store credit. Depot requires an ID even if you return with a receipt, which is garbage, as they compromised my information to a criminal recently... so I hate providing it to them.
    A potential outlet for cheap gcs would be a pawn shop... but they wouldn't go this cheap.. maybe 80-85 cents on the dollar.... still a fat savings.
    Also keep in mind, they can use the GC and make an online purchase without ever showing it, so proceed with caution. Lowes or cheapo depot won't feel sorry if you get scammed on this one.
    Oh, and, if you have a ccw, this would be a good time to carry, because some sellers may not have a lot to lose. IMO, there's some risk involved.

    0Reply
  • Sam Sagor
    Residential Landlord · Kailua-Kona, HI · Member since 2012 · 111 posts · 15 votes
    14y

    Old secret but good secret. Plastic jungle and other such sites have gift cards at a discount. I think they are relatively safe as they verify before reselling but I'd would check that. Ebay has gift cards cheap. Pawn shop works but again be aware that theses are possibly the result of lifting and use caution in any deal where you will be buying without verifying. Also credit rewards are good source of getting discounted cards as the points taken can very sometimes a lowes card that goes for 10000 - 30000 points goes for 5000 etc.
    example: Citi thankyou rewards ran something 4 days ago 'Redeem Lowe's $50 card for 4500 points' and they gave extra 1500 back if you got randomly selected for an email. This goes to March 31st 2012 the actual points people have obtained them for ranges from 3000 - 6000 points. Point in case if you pass a lot of money through a rewards card and time it for the sale you could get quite a few cards.

    0Reply
  • Luis A.
    Real Estate Investor · Atlanta, GA · Member since 2009 · 339 posts · 126 votes
    14y

    Will is sort of right that it helps knowing the guy at the commercial desk. The problem is that they are not there for long ;-)

    Also is good to know that if you are active or military vet you always get 10% when showing ID.

    However I have always gotten the best pricing when doing the bulk order through the commercial desk and have seen discounts from 10-50% depending on the item. Also, once you do an initial order through the commercial desk then everything other purchase after that one I get at least 10% off if I check out through the commercial desk.

    1Reply
  • Jim M.
    Real Estate Investor · Charlotte, NC · Member since 2011 · 252 posts · 56 votes
    14y
    Originally posted by Ed O.:
    In order to protect myself on these.... somewhat shady folks, I go into the store, and pick my materials and explain to them that as soon as I use their merchandise credit to pay for the transaction, I will put the cash in their hand. Every time, the seller has been fine with it. With a receipt, you can always return the merch and get a fresh, 100% safe store credit. Depot requires an ID even if you return with a receipt, which is garbage, as they compromised my information to a criminal recently... so I hate providing it to them.
    A potential outlet for cheap gcs would be a pawn shop... but they wouldn't go this cheap.. maybe 80-85 cents on the dollar.... still a fat savings.
    Also keep in mind, they can use the GC and make an online purchase without ever showing it, so proceed with caution. Lowes or cheapo depot won't feel sorry if you get scammed on this one.
    Oh, and, if you have a ccw, this would be a good time to carry, because some sellers may not have a lot to lose. IMO, there's some risk involved.

    You should meet them in the store so its a public place, make sure the card hasn't been scratched off so they can't use it online after they sell it. Also, perhaps get a driver's license and write out a bill of sale to protect yourself.

    0Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    If you need to store the value I have heard you can also buy tools and return them for a set period of time. That keeps the person that is selling the card from using it after they sell it to you.

    0Reply
  • Account Closed
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    14y

    Will of course you get an automatic discount...most of us do if we shop the stores enough... However when you have a moment, look at what items you saved on and which you didnt get a large discount... Your overall savings might say 15%... high markup items like bath fixtures I generally save almost 20%... low markup items not so much... So what we do is break out my lower discounted items...if I saved over ten percent I leave it alone... If it's less I break it off and use the coupon... Yes it's a bit tedious but I spent over six figures at Lowes last year so it does add up. :)

    1Reply
  • Shanequa J.
    Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
    14y

    I get a 10% military discount so I don't worry to much about gift cards. Whenever I get work done I prefer to pay for labor only.

    0Reply
  • David Wedemire
    Real Estate Investor · Bellingham, WA · Member since 2008 · 407 posts · 90 votes
    14y

    It is an interesting way to use gift cards. Maybe it will work elsewhere

    0Reply
  • Randy Wong
    Investor · Baton Rouge, LA · Member since 2011 · 15 posts · 1 vote
    14y

    That is a great idea. I'm going to check eBay right now.
    Thanks

    0Reply
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    14y
    Originally posted by Bryan A.:
    However when you have a moment, look at what items you saved on and which you didnt get a large discount... Your overall savings might say 15%... high markup items like bath fixtures I generally save almost 20%... low markup items not so much... So what we do is break out my lower discounted items...if I saved over ten percent I leave it alone... If it's less I break it off and use the coupon... Yes it's a bit tedious but I spent over six figures at Lowes last year so it does add up. :)

    We do the same thing, though our rep will do it all within one order...

    When we go through the bid-desk at Home Depot, we find that on the first-pass, generally about 30% of the items are discounted 20-40% and the rest aren't discounted at all.

    So, what we do is have our rep at the pro-desk submit through the bid-desk, get our big discounts on about 30% of the items, and then have the rep apply 10% to the other 70% of items in the order. Overall, we average about 18% discount off retail this way.

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    1Reply
  • Jeremy Namen
    Real Estate Investor · Saint Louis, MO · Member since 2012 · 113 posts · 12 votes
    14y

    everyone pays 50% here - Can these receipts be treated as cash? In other words if i bought a hundred dollar card for 50 bucks and i spent it... if i were ever audited how would they look upon the gift card as payment method?

    0Reply
  • Jeremy Namen
    Real Estate Investor · Saint Louis, MO · Member since 2012 · 113 posts · 12 votes
    14y

    BTW-Pawn shops carry them and actually think there is a company that buys the unwanted gift cards and sells them online. That is pretty funny that OP thought he had some big secret..

    0Reply
  • Michael Lauther
    Investor · Hampton Bays, NY · Member since 2009 · 907 posts · 258 votes
    14y

    Thanks for the post, Yes Jeremy it was a secret to me. Never thought about it and it will save me money if I can implement. Thanks for all the input.

    0Reply
  • Loc R.
    OP
    Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
    14y
    Originally posted by Jeremy Namen:
    That is pretty funny that OP thought he had some big secret..

    Nice contribution on your behalf...FYI I've had at least 5 BP members here privately thank me for introducing them to yet another tool for their tool box. I think that's what we're here for.

    4Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    It may not be a secret, but it is certainly a good idea. One person's secret method is another's great idea I guess.

    0Reply
  • Greg B.
    Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
    14y

    It was a secret to me until I read this or another thread about it. I think the concept is just like many other concepts, the creativity is in the details of implementation. I have seen several comments that spur other ideas, ie: buying in mass, flipping gift cards, uses of gift cards in other areas of life.

    The creative banter that comes from such a simple idea is the stuff that makes this and other forums fun to participate in. Identify a problem, look for solutions. Thank you to all who contribute.

    PS: This is also the kind of stuff I look forward to when sitting around the table at Denver in 11 days! Off the record conversations are like the icing on top of the cake.

    0Reply
  • Jeremy Namen
    Real Estate Investor · Saint Louis, MO · Member since 2012 · 113 posts · 12 votes
    14y

    Im sorry if that came across wrong- I had been using them for years- I actually got stabbed over one on 6/2/09- By the time i read it it seemed like most had heard of it- It was funny because here you were holding back valuable info and wanted to keep it all to yourself- and you wouldve had "the word' not been let out- actually i dont know why it was funny but it seemed funny to me this morning - sorry if i offended you by unintentionally belittling your info.

    0Reply
  • Jeremy Namen
    Real Estate Investor · Saint Louis, MO · Member since 2012 · 113 posts · 12 votes
    14y

    you can go straight the self check out line usually w the person and they can scan the card the screen displays the amount on the card

    1Reply
  • Billy V.
    Investor · El Dorado Hills, CA · Member since 2010 · 64 posts · 15 votes
    14y

    I have been doing this same thing for about a year now. It has been working great for me. I also purchase all my discounted gift cards and 10% off coupons with my "PerkStreet" bank card. They give 2% cash back on all non-debit card items. There customer service is just ok but 2% is 2%. Altogether I get 7%+10%+2% for 19% off. Not too bad for stuff I was going to buy anyway.

    I also read in Money Mag that Capital One has a 2% cash back business credit card that applies to all purchases. I have not looked into the fine print on this one though.

    If there are any other good discount ideas for other than HD and Lowe's I would love to read them.

    Thanks.

    0Reply
  • Jim M.
    Real Estate Investor · Charlotte, NC · Member since 2011 · 252 posts · 56 votes
    14y

    Jeremy, you were stabbed over one? I hope you weren't injured too bad and they got the guy! Whats the story?

    0Reply
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