Getting Real with Investors: You mean I should hire an interior designer to help me with my flip?
Many of you know that after 20 years in interior design and remodeling, I gave it a go at flipping houses. It wasn’t the Fix & Flip part of Buy-Fix-Flip that I struggled with, I didn’t like buying the houses.
I am so impressed with those of you who are really out there hustling every day, getting properties under contract, solving seller problems and building a business for you and your families. It’s amazing to me the tenacity many of you have and since that was just NOT my strong suit, I am even more driven to help you! Not to mention, I really LOVE building a “traditional” service business especially in the B2B space. This is where I get to help people (like YOU!) become more successful in what you do. And when I saw a gaping hole in the area of design and construction in the real estate investing world, I sought to fill it.
I mention my back story again to share with you that I am kind of fighting an uphill battle to get my message out there and to be received by investors and that’s ok, I am up for the task, so this is my attempt to help you understand how a designer, can help you grow your business!
So let’s get into 3 Reasons why Design is so important in Fix and Flip Rehabs:
#1 The buyers you are rehabbing these homes for are real people:
The buyers you are building / rehabbing for are real people just like you. You must consider what the “ideal” buyer for that property is. Is it a married couple, single male, working parents or is mom a stay-at-home-mom? Do they entertain during the holidays? What does their dream home look like? What are their desires, hobbies, pet peeves? It may seem like a lot of work but you should at least try to pin down the basic demographic of the potential buyer for each of your properties given the area of town they are in. Doing this will help you make educated decisions about who will buy this property and what finishes and design to put into it as a result. It will give you an edge over the competition in the market because your house will appeal to the buyer over the others!
#2 Buyers today are very design savvy:
One of the most popular interior design services right now for homeowners is E-Design. It is far less expensive approach to hiring a designer than traditional interior design services. It allows a homeowner the expertise and insight of an interior designer, helping them pick out all of their furnishings and accessories, but it doesn’t cost nearly as much because the client is responsible for ordering and placing all of the design elements sourced by the designer. I tell you this because buyers are REALLY into good design in this internet age. Your buyers likely have a gazillion images pinned to their “Dream Home” Pinterest board before they even start looking at houses on the MLS. Does your property look ANYTHING like what your buyer really wants or did you cheap out and put builder basic in thinking you were being clever and saving a few bucks? That may work at times but I would venture to say that if you’re flipping properties over the median home value ARV ($216k according to Zillow), that approach is going to get you into trouble eventually.
#3 Good design leads to faster sales:
This should be a no-brainer but I am going to tell you right now that there are a good many “wise”, seasoned investors who STILL kick at the goads when it comes to this truth. They either blow the notion off thinking they can achieve a designer look themselves or worse yet, they don’t even care what they put in their rehabs and they just have their contractor throw “whatever is cheapest” in. Well, I am hear to tell you that I have seen a few giants in the industry stumble and it was ALL DUE TO POOR DESIGN! Holding costs kicked their butts.
Thank you so much for taking the time to read this and I would LOVE some feed back, your thoughts on this. Please feel free to leave a comment below. Also, I did a What the FLIP Live where I expanded on these 3 reasons HERE!
Lastly, I will be publishing a couple of case studies on recent properties we helped the investors with design and staging. They are pretty cool stories so take a moment to check that out when they’re published. Also, I wrote in a recent email to my subscribers, a story about another investor who refused to hire our services and what happened to his business. You can check that out here. I hope this shed some light on why I do what I do and how much me and my team love helping folks like you!
To your success,