Price of Materials?!?

[Billy Daniel]

What strategies are you investors using to rehab/remodel these homes with prices skyrocketing?  Some numbers I've heard:

PVC up 400% in last eight months

Electrical wire up nearly 200% in same period

Lumber up around 180%

How are you handling this?

[Shafi Noss]

I am a financing partner for some flippers. I've seen some projects do well simply because the spread is large enough that they can take the materials pricing hit.

I spoke with an expert in the supply chain industry about the lumber shortage too. His take is that there was a simultaneous spike in demand and drop in supply. The increased demand is likely to stick around, but the drop in supply came primarily from sawmill workers stopping work, since it is a close quarters job and they were considered non-essential. The lumber-mills are up again, but it takes time for that wood to finally reach retail stores, so we will see the supply increase again in a few months.