What Are You being taught about professional interior design in flipping?
In my years of helping investors design their flips for fast resale I have encountered too many investors who have been led astray by their mentors, coaches and teachers when it comes to professional interior design in their flips.
Last week I discussed several factors that affect the fast sale of flips. If all those factors are in line and yet you leave good (professional) design out of the equation, you may very well be sitting on that property for a while.
That is why I am so adamant about the vital role design plays in the success of your flipping business!
I mentioned last week that I work with investors at all phases of their rehab; pre-offer walk thru consultation, after contract/pre rehab services, after rehab staging and finally after “it’s been on the market a little too long” consultation.
I have run into several clients lately who are facing “it’s been on the market a little too long”. It stinks because these issues causing their flip to sit there could have been avoided!
I will share with you a quick story about one of those investors.
We will call him Otto (not his real name 😊 but this is his story)
Otto is a fairly new investor being mentored by a REI coach in his local area. He is doing sooooo many things right in his investing business and to give credit to his mentor, much of what he is doing is based on the advice he is getting from them.
He has flipped a couple properties and it is evident that he is going to make it in this tough industry! He has tenacity, a great mindset and is making many wise decisions in his flipping business.
However, Otto ran into one little snag recently, and though I don’t think it is a total deal breaker, there is a chance he will not make the profits he’d hoped on this particular property and hopefully if we can get things turned around for him, he will not lose too big. Otto’s most recent flip is sitting with little no no traction on the retail market. All the other factors that affect the fast sale of a flip have been met but the one thing this property is lacking is good design therefore is not attracting buyers.
Why you ask? Well, Otto has been taught that professional design doesn’t matter and the contractor he used also believes that professional design is of little consequence therefore doesn’t allow for much artistic and design liberties in their rehabbing business model. This left Otto with very few choices where the direction of his rehab is concerned. I will mention that this is a $500-600k ARV property. Some of the finishes used should NEVER have darkened the doors of an property in that ARV! They are only suitable for $200 or less-less really. Anyway, I digress.
Now Otto is in a position where he must make some DESIGN decisions that, regardless of which direction he goes, will cost him a little money, or a lot but not nearly as much as dropping the price significantly on the advice of his agent. I believe the agent is suggesting that price drop because they know the design is not up to par for the price he is asking.
The sad part is that if Otto had been taught by his mentors that seeking the help of a professional designer, to ensure he was headed in the right direction with his rehab, he could have resolved many of these design issues before they became issues!
I will keep you updated on Otto’s plight as the weeks go on.
With that said, here are some things to look for when hiring a professional designer to help you with your rehabs:
✓ Must have a knowledge of design factors that contribute the fast resale of real estate
✓ Must have knowledge of basic construction principles
✓ Must have a basic understanding of fix and flip real estate investing principles
✓ Must be able to work within the goals and budgets of the real estate investor
✓ Must be able to source inexpensive but stylish finishes and bring a cohesive look to the home
✓ Must be able to provide a quick turnaround time of deliverables
Those are just a few!
If you have found an interior designer to help you who has those credentials, I would strongly suggest using them to, at the very least, consult you on the direction and design of your rehab prior to demo day.
If you don’t know a professional designer like that, we can help you here at REI Design Solutions!
Finally, because I am confident that interior design in flipping is vital for the successful resale of your flip properties, I am hosting a LIVE WEBINAR on Friday January 25, 2019 at 2PM CST!
I have titled this webinar “Design Principles for your Flips” because if you don’t have a professional designer in your area who you feel comfortable working with or who doesn’t meet any of those above credentials, following these 10 design principles, will ensure the fast sale of your flips!
Click on above image and sign up to attend…I can’t wait to see you there!
In the meantime,
To your success!