Thread: Construction Materials Distribution

Good day guys. i am doing my due diligence on this fastlane plan i got with a brother of mine to entering into the construction space here in florida and eventually scale the business cross the nation, central to south american and in the caribbean. Not alot of new construction going on at the moment but remodeling is people are remodeling there homes and need quality materials at affordable price. Our plan is to source materials which my partner is overseas doing at the moment and distribute directly to home owners/retailers. We are considering to offer consignment on certain materials which is seem a bit risky at the moment but further research may prove otherwise. The glass industry in florida only got a few vendors but i heard it is a high risk space to into, but high risk high reward and its business, there's always competition.

I value you guys opinions, so if you guys have any thoughts on it please and for you who are familiar with the construction materials space, i welcome your suggestions

Originally Posted by Mr.Beckford

We are considering to offer consignment on certain materials which is seem a bit risky at the moment but further research may prove otherwise.

I would really look at this carefully. In my experience the number of shady construction companies and rehabbers that will not pay you tend to out number the ones that do. You might find that the increase in volume makes up for the levels of bad debt but if your funding is limited I would not risk it waiting for somebody to hopefully pay you. You might be able to deal with the rehabbers that actually own the property directly assuming you could attach a lean to the property if they don't pay but at the end of the day you have to have enough cash to wait this process out, and it can take a very long time to do so.

Over all I hope it works out for you and please keep us posted on your progress.