Flipping Design and Creativity

[Joshuah Hanson]

Hey everybody, I am new to real estate investing and have decided to get into flipping houses.  I have a financial background, good understanding of how flipping works, my flipping team is coming together and I see a lot of potential in the San Antonio markets.  The area I am running into issues is the design and creativity needed to successfully flip.  Dollar for dollar I understand that you actually lose money when you renovate a house so the real profit comes from being able to step into the potential buyers shoes and create a unique and comfortable living experience.  I am good with numbers and finding houses but I have never been an overly creative person and I am struggling when it comes to putting the interior and exterior of a flip together in a way that has the flow, comfort and experience needed to create a profit.  I am planning on spending a lot of time at home improvement stores in my area but outside of doing this or hiring somebody to help me design a flip house is there anything else I can do that would prevent overspending? I know a lot of flippers aren't designers themselves but I look at their work and I don't understand how they came up with their ideas.  Any help, recommendations or advice is greatly appreciated!

[Jen R.]

A few thoughts...first, too much creativity can actually be a bad thing in flipping. The most successful flippers I know have their go-to designs that they reproduce in every house, from paint colors, flooring, cabinets, counters, faucets, etc. That lets them purchase in bulk and streamline the entire process. Their subs know exactly what is going to happen at each property, which keeps them hands-off for most of the rehab so they can focus on making more deals. “Creativity” might only really come out in layout changes, tile design, and staging. 

Another option when starting out is to look at hiring a renovation consultant, who will help you think through affordable layout tweaks that can be made, and simple things to add value. My husband and I do this on the side, mostly for homeowners, but it could be beneficial as you are starting out to help you see all the possibilities. In fact, if you post detailed floor plans on BP, many people are happy to offer advice and sketches for free. In reference to your question about contractors helping with this, in my experience it is much better to come to the contractor with a vision/plan, have them point out any issues and  offer suggestions for work-arounds or how to do it more affordably.

Next, as Ray mentioned, get out and check out what other flippers in your area are doing. Visit new home builds as well, especially by the big-name players. They have designers whose entire job is to research and spec out finishes that buyers will want.

Beware of sources like HGTV and interior design catalogs; sure, they put together some gorgeous projects, but usually profit is not a factor on those jobs...and once you develop expensive design tastes it gets harder to make design sacrifices to maximize profits...