No matter the size of your rental property investment operation, a big component of any investor’s budget will be spent at building material supply vendors. Whether it is a new construction development or just a vacant unit turnover, understanding how building material vendors work is an important component of rental real estate construction that investors need to understand.
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What is a Construction Material Supply Vendor?
Construction material supply vendors are either individuals or companies who specialize in sourcing and reselling building material and related products, to be used or consumed in the work of real estate construction and improvement.
What Type of Products Do Construction Suppliers Carry?
The products that construction supply vendors sell are the individual components that are used to collectively construct or repair a property. These components range from “Raw Materials” such as wood, sand, cement, etc. that are called Building Materials, to more “Finish Materials” such as door handles, light fixtures, etc. that are called Building Products.
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Types of Building Material Suppliers
Warehouse home improvement suppliers are large retail chain stores that sell building materials and products. They are conveniently located throughout the country and provide convenient access to purchase supplies on-demand as needed. Examples of home improvement warehouses include Home Depot, Menards, and Lowes.
Local Hardware Stores are independent or franchised retailers of building materials and products. These local stores are often found within suburban neighborhoods and offer consumers greater convenience than commuting to a warehouse improvement store.
Supple warehouses (commonly called Supply Yards) are wholesale suppliers of predominantly raw building materials. Most are either outdoors or a combination of indoor-warehouse and a large outdoor yard. They are primarily intended for General Contractors or entities that purchase large amounts of building materials. Some specialize in just one particular material such as lumber or masonry, while others host a full offering of materials.