Hi folks,
I am currently building a house and would like to maximize my aeroplan points, however, as you are no doubt aware, many contractors do not accept Visa. Any suggestions would be greatly appreciated. Can you collect points from purchasing money orders?
Cheers,
^

You cannot use a credit card to purchase money orders, so that end is out. Otherwise, I'm not sure if there is a way to do what you're looking to do, given the circumstances you describe.

Mike

One thing to remember is that many small tradesman may pad their bill if they know you'll be using a credit card. And if you pay their cost (Probably 3-4%), you're losing big time. Miles are nice, but not if you pay 4 cents per mile.

One thing you could do is see if any of their suppliers take credit cards (many do), and negotiate you paying for the parts direct. Now most tradesman will mark your parts up, so you may have to give them a certain percentage markup.

Perhaps your builder does or at least could purchase many of the materials necessary from Home Depot or other similar suppliers. Make your contractor an additional card holder on your account and ask him/her to make building materials purchases with the card.

My contractor neighbor says he gets a 10% discount on all building materials he buys, but only if the charge goes on his credit card. But then he marks up everything by 10% (which works out to a 1% benifit to me). Ask, and do the math to see if you would be better off buying the materials yourself on your credit card.

You're going to be buying LOTS of stuff the contractors will not be providing for you. Think appliances, flooring, lighting, shelving, etc. etc. etc. This stuff adds up quickly.

While I know it doesn't compare to the cost of building the house, all these little extras add up to quite a bit. I know that we used our old GM Card for the purchase of our new home and ended up with quite a nice discount on our next car.

Mary

First, if your state has a sales tax, go online or call the sales tax line in the State's Department of Revenue to find out if such building materials are subject to sales tax (and if it matters whether you or your builder do the buying). It probably varies by state.

Second, get a sense for what Home Depot and Lowes are charging for a sample of the material. Also, check with some local lumber yards (many of these are old and may have their buildings paid off, so that their prices are close to HD and Lowes). Regarding pgary's comment, I would out the store where the builder would buy the materials. If prices seem competitive, check with the manager at the store to see if he'll give you some discount if you buy the materials directly (you may need to agree to purchase a minimum amount). Also check with the manager at some of the local lumber yards on getting a discount as well. I wouldn't even bring up the issue of method of payment. If they have a VISA sticker on the door, you don't even need to ask.

Third, saving $1,000 may not be worth it if you have to deal with getting materials from the store to the site, which Lowes or HD might do for $75. So make sure you understand your delivery options.

I built my own home last year acting as my own general contractor (that's a story in itself). I saved about 30% of the cost of a general contractor (I did hire a supervisor to represent me when I couldn't be there). With the exception of a few sub contractors I purchased and supplied all materials. I got competitive quotes from Home Depot, etc. but mostly worked through one of the local lumber yards (most lumber yards will come pickup leftovers and credit you, HD won't pickup). Everything that could went on a credit card. Some suppliers charge 2-3% others nothing to use a credit card. Of course I had to pay the subs cash or check but materials earned me miles, lots of miles. I also purchased specialty items over the internet like wiring, light fixtures, a custom designed whole house manifold/pex plumbing system, and more. I even used my credit card to fly my favorite electrician half way across the country to do the rough wiring...can you say more miles.

As someone else already stated, most tradesmen pad, especially the materials. Even if they won't let you pay by credit card make them spell out exactly how much is labor and how much is materials when they provide an estimate.

It's your house, your money, so just tell your general the way it's going to be and if they don't like it find one that will work within your parameters.

You may be able to pay your construction loan using your credit card. @:-)

Well a great way to get a reputable builders attention is to use this approach. I, for one, would decline to deal with a client who gave me an inkling of he was going to tell me, "the way it's going to be."

Personally, if the client is a really good one, I have had no compunction against letting them use a credit card at a preferred supplier in order to get miles. The client provides the credit card receipt and administrative, overhead, taxes and profit are charged on the entire amount of the invoice. All our contracts specify that we have been hired to professionally manage the job; this includes assistance with selections, ordering and scheduling. Homeowners are not allowed to supply items or perform work because they may have an impact on schedule and cost. And really, folks, we forget that the sink that they ordered from Guissepe, a friend of their housecleaners, in Italy did not arrive on time when the move-in crunch occurs and the inspector will not sign off. Home Depot will never be a preferred vendor because they are not equiped to professionally deal with expediting, insuring that items are correct, warranty issues or even tracking of shipping or, heaven forbid, the wrong item being received. It is almost impossible to get a professional result using them.

Even using Costco's service to allow a builder to accept credit card payments adds cost to the equation. Costco's program will add somewhere in vicinity of 2% to the equation. In 20 years, no one has asked for this service even though it would improve company cash flow.

That said, company credit cards are sometimes used to charge items for projects, especially from suppliers who do not provide prompt payment discounts. (My clients get the discount). The miles earned are credited to my accounts not the clients. The clients are aware of this and receive a copy of every invoice. Building a custom house is not just about the absolute bottom line cost. Please approach your negotiations with this in mind and miles may come your way.