It takes confidence and the right resources to buy a fixer-upper—but if you’ve been wondering how do you start investing in real estate, buying a property to rehab and resell can be an excellent way to go.
House flipping has become an increasingly popular way for real estate investors to build wealth. However, that doesn’t mean that every flip is successful. If you want to maximize your return on investment, you need the necessary know-how, as well as some imagination, a discerning eye, and a great real estate investing team.
In addition to the lawyers, accountants, real estate agents, and property managers to build and manage your real estate portfolio, hiring an expert to help with the design elements on every home flip can be a worthwhile asset to your team and income. Mastering the elements of good interior design takes more experience than looking at paint swatches and watching a few home design shows on TV!
Instead of making design decisions on their own, savvy investors should consider working with a professional interior designer on fix-and-flips and buy-and-hold investments. Let’s discuss why.
Becoming a Fix-and-Flip Investor
When it comes time to decide your primary focus as a real estate investor, you might be inclined to put turnkey properties at the top of your list. For example, if your timeline is tight and you’re in a hurry for prospective tenants to sign their residential lease agreement, it’s understandable that you’d want a property that’s move-in ready.
However, that’s not the best route for every investor. Still, other investors might own rental properties and other residential investments for a more diversified portfolio. When you’ve started in real estate, and you’re considering all of your options, thinking beyond traditional rental properties can lead you to fix-and-flip investments.
Move Quickly to Make More Money
When you find a good flip opportunity, investors must move quickly for these in-demand real estate investments. In many cases, fixer-uppers can be more affordable than turnkey properties. However, they usually require more work to get the property ready for occupancy or resale. You may need to invest time and money to address structural issues, service systems (like HVAC, plumbing, or electricity), and aesthetic quirks.
An upside to this is that you’ll be able to put your unique stamp on the property and include desirable features that can increase its value. So even though you’ll likely put more money into the property through initial renovations, you can often enjoy better returns on your investment over time with a fix-and-flip.
What’s more, when you flip a home or a rental property, the process isn’t meant to take a long time. The best way to make more money is to renovate the property within a short period to maximize profit. When you use a platform like Privy, you’ll be in a better position to find the best real estate deals in desirable areas and act quickly for your next investment.
What About Rental Properties?
If you prefer rental property investments, having a good handle on design can still help you make more money. Renovating a rental home with the right style quality and amenities can help attract better renters and set you up for higher rental prices and better returns. So whether you’re focused on making a profit by selling quickly or you’re interested in a “buy and hold” approach with rental properties, don’t underestimate the benefits of working with a professional interior designer for your properties.
Why Hire an Interior Designer When Real Estate Investing?
How do you start investing in real estate with a fix-and-flip property or rental homes? One of the first steps is to assemble a team of qualified professionals you can trust.
While it may be tempting to DIY everything you can, many investors waste time and money with that approach in every situation. If you want to become a successful investor and build more long-term wealth, you must recognize what you can bring to the table and where your skills could benefit from outside help.
Most savvy real estate investors realize that they need interior design help from a professional. Even if you believe you have good taste, it can be a good idea to consult with an interior design expert to ensure your fix-and-flip properties contain the features and trends that buyers and renters want.
An Interior Designer Can Help You Maximize Returns and Minimize Costs
Understandably, you might be worried about how the cost of hiring a designer will impact your bottom line. There’s no way around it: working with an interior designer will add costs to your renovation budget. However, it’s crucial to remember that their work can vastly improve the property's resale value after it’s rehabbed. If you play your cards right, your designer’s work will pay for itself (and then some!).
While better returns are essential, interior designers can also keep you from making costly mistakes during your renovation that could delay the sale or occupancy of your investment property. What’s more, building an ongoing relationship with your designer can be mutually beneficial as a member of your real estate investing team. If you provide your interior designer with steady business, their costs may be more affordable to you long-term.
You can also take a “buying in bulk” approach with your designer’s input when rehabbing multiple properties, allowing each property to include in-demand features while using similar hardware, paint colors, and other design elements from project to project.
Professional Designers Know What’s Trending
A local interior designer may also possess market insights that you don’t have—especially if you invest in multiple markets. You might understand certain real estate investment trends, but do you know what the average homebuyer or renter wants in a property when investing in a market out of state? Your interior designer will. A professional designer can create a concept that can attract your ideal audience and ensure your investment pays off.
On the other end of the spectrum, a designer will also know which upgrades and features are a bad investment. Certain styles may be “in” for a season, but will they stand the test of time? Bold choices will attract only a specific type of buyer or tenant, while ultra-expensive or outdated upgrades might not bring a high enough ROI in your target market. A designer can keep you on track with your budget while making sure your renovation won’t price your property higher than the market will bear.
Having this kind of support from a reputable interior designer can be priceless! Whether you’re rehabbing a property that you plan to rent to tenants or you’re looking to buy an inexpensive home and fix it up for a quick profit, your interior designer can guide you through the process and ensure the final result will stand out.
Add an Interior Designer to Your Real Estate Investing Team!
When figuring out how do you start investing in real estate, you’ll quickly learn that an investor is only as good as their team. Going it alone will eat into your profits, delay your goals, and lead to unnecessary stress. By relying on a qualified interior designer, you’ll end up with a more visually appealing property that meets the demands of buyers and renters. When choosing your next property, make sure you also get the best deals and investor insights to maximize returns! Reach out to learn how Privy helps investors find the best properties at the best prices.
Learn more about the key players every investor needs on their team! Download a free copy of “Assemble Your Real Estate Investing Team: A Worksheet!”