Quote from @Adam Odom:
So I don't think it's black and white either - I did new windows in our primary home and our contractor measured and ordered the windows and then I called the supply house and gave them my card. He didn't want to front the money himself and I was happy to get the points. So he was in control from start to finish but we used our cash to buy everything (including flashing/caulk/other things he knew were needed). I've also given a contractor my Lowes card (we have known him forever and I fully trust him) for a week so he can buy whatever he needs to get the job done. I've also used guys and just written them a check for draws along the way but never purchased material. There's never a one size fits all for real estate/investing.
Speaking specific to this, because I owned a window remodeling and distribution company.
When I would put in a window order, it was at the manufacturing plant itself, not Home Depot, not Lowes. If your materials are coming from H.D. or Lowes, your doing it wrong. And if that's where your "GC" shops, he's NOT a GC, he's an installer with a GC license. Very big difference.
A "REAL" GC, has vendor account's, manufacture account's, and negotiated product discounts based on volume. You can't make those payments, literally, it's not allowed.
When I went to buy a furnace, it was closed to the public. It required licenses to buy there, and vendor account, and EIN. Cabinets, same thing, I was direct with manufacturer. Paint, I bought from BEAR, no not buying BEAR paint at H.D. I bought through BEAR itself and H.D. serviced out account, my pricing was negotiated and specific to myself.
I'm not special in this regard, this is the standard of how it's done for professional GC's. NON-professional GC's get their stuff at H.D., Menards, Lowes's etc..
And yes, I did get some things at H.D. but even then, I had a corporate account, and received corporate pricing that came from corporate office. Again, volume based and negotiated discount. Some were minimal, 3-7%, some as much as 68%. I only saw 68% once, maybe was a type but I took it!
I spent literally millions per year, every year on materials. That's purchasing power, that leverages those accounts and discounts. Yes, we mark-up materials, but on our discount, not retail. And, we handle everything, are liable for everything. Sending someone to H.D. or Lowes with you card will never compete with what we can get, at the price we can get it. Nor will the product be the same. For example, when I buy Dewalt tools, they look like what you can get off the shelf, but there not, the gut's are different. I have metal drives vs plastic, the wrapper looks the same but content is whole different item. Same goes for everything, tools, windows, flooring etc..
