Working on my first Fix &Flip

[Destiny Holmes]

Hi, I am working on purchasing my first fix and flip. I've done some research and read a lot of books. I am getting my team together as well. One of my questions is do the general contractor get the material (cabinets, countertops, flooring, paint, etc) or do I have to look for all that on my own? If so, where do you look to get the material and how much is too much? I live in Los Angeles, California.

HELLLLP!!

[Ryan Saldanha]

@Destiny Holmes

DO NOT LET the contractor buy the materials! Ask for a labor quote only.

PROS

1) you buy the materials you retain control of the material if the GC walks off the job

2) less money is transacted between you and the GC. you said you’re brand new, right?

- GC asks for 15k for the kitchen upfront and then walks off the job you’re out of 15k

- On the other hand, let’s says it’s 5k in labor for the kitchen, you have decreased the monetary loss if he/ she walks off the job

3) you don’t get any of the benefits of buying in bulk and the GC maybe marking up materials

- set up a Home Depot Pro Xtra account and the GC shops on your behalf and the PRO desk calls you for a credit card over the phone. You know what materials cost and the electronic receipts are automatically sent to your email for tax purposes, etc.