Real Estate Agent · Houston, TX · Member since 2026 · 30 posts · 7 votes
There seem to be two completely different camps on how to handle rehab materials.
Some investors insist on ordering all the fixtures, flooring, and paint on their own Pro accounts to rack up points, track exact receipts, and avoid contractor markups. Others refuse to spend hours walking the aisles of Lowe's or Home Depot, preferring to let the GC supply everything so there’s zero finger-pointing if something is missing, damaged, or delayed.
For those actively running projects right now: do you prefer to control the material orders yourself, or do you put that entire headache on your contractor?
We've talked about this before here on the Forums. You could search for those old discussions, but speaking as a GC and Investor, I'll reiterate briefly......
Any 'good' General Contractor will not want to run a project where the customer/investor/homeowner is ordering materials and supplies. It's not about the money as much as it's about losing control of the project. You can almost never count on the client to deliver the right product to you, or your Subs, on time. And if you're going to be responsible for materials, then you need to be responsible for picking them up and getting them to the jobsite, and then securing them until they are ready to be installed. You can't just drop off a dozen different light fixtures, a month before the electricians are ready for finish, and expect them to get installed in the right location (if they are still there at all....)
I always found that as soon as the client gets involved, it's always trouble. I mean, a few special fixtures are ok, but once they get their hands in there, there are just too many moving parts and more things to go wrong. And guess who always gets the blame? Yep, the GC....
Some clients even want to buy windows and doors, etc....just to get 'points on their card'. But then they expect the GC to pick them up when they come in, using their trucks/trailer, get them to the jobsite, store in a house that's often not secure, and then if anything goes wrong, it's the GC's fault. Who would want that?
And then let's talk warranty issues. You (as a customer) order a product to save a few bucks (allegedly), and then 6 months after the job is finished, the product fails. You're going to call the GC, right? I'm going to tell you to call the manufacturer yourself...you bought the product after all....right?
And as far as saving money, that is often a myth. A good GC will be able to buy materials at a reduced cost, add on a markup, and still come in lower than you, as a client, can. As a matter of fact, I would use this as a test - if a GC is ok with letting you buy materials, that should be a warning. They are either a) inexperienced, b) desperate for work, or c) have a poor business model.
My final thought - if getting some 'points on the card' is more important to someone than having a well-run remodel project, then they're in the wrong game. Get out of the investing business and get a real job, Lol.....
100% truth from the boots on the ground side. Chasing credit card points doesn't mean anything when a job site sits idle for two weeks waiting on a backordered vanity or the wrong rough in valve.
That point on warranty and staging logistics hits hardest, too many investors forget that the second you insist on buying the materials, you also own the theft risk, delivery delays, and manufacturer defect claims.