Young Architect Starting Out Flipping -- Columbus, OH

[Account Closed]

Hello, bigger pockets world

I am an architect, I have just finished my master's degree in architecture and have practiced a few years prior -- together I have been in the game for around ten years.

Rather than returning to a job being a monkey at an architecture firm, working long hours, living on mediocre pay in an expensive market like NY or LA, I've decided to move back home to Columbus, Ohio to try to build my own projects.

With architecture, you’re never really trusted to build something unless you have already built something. So, in this case, I am hoping to be my own client and get my first work built.

Because I don't have a lot of cash on hand, I was imagining to first buy and flip, and with the money earned use it to purchase more and to keep it growing. Ideally, I would like to own rentals and eventually soon building new builds, once I have a built a network of contractors and trusted pros.

The goal is to challenge the business models of architecture offices and to also challenge developers a bit. The city is being overrun by developers and flippers doing minimal work to try to stretch their dollar as far as possible. I get it, it's capitalism. Though this is my home and I think it deserves a little bit more love than it is getting right now. And I recognize that by having good design sensibility, being an architect and understanding where to focus the money, I believe that I can make much higher profits for the same amount of money invested as a typical flipper.

My father, as a hobby, has been buying and flipping homes for the past 8-10 years. He has experience with the process, but I am hoping to find funding on my own. He is willing to oversee the project and will help me look out for problematic areas, and knows a lot of contractors.

I also would like to do a lot of the work myself, at least demolition, framing, electric (my father is a trained electrician), insulation, wood flooring, trim, etc. and my father has most any of the equipment I would need, but financially I would like to be independent of him.

What are the best ways to get started and to find funding without a lot of money on hand? I have the know-how and am confident that high profits can be made, I just am trying to find the best ways to purchase a house and fund the first project.

Thanks kindly!

[Nik Moushon]

@Account Closed

First, congrats on graduating from architecture school. Thats not an easy major. I know, I did it and have been practicing for nearly 10 years now. 

Second, if you went through the trouble and expense to get that degree dont waste it by not going to work in an architecture firm. Architecture school only teaches you a small fraction of what you really need to know. You gain most your experience and knowledge from practicing in a firm in the real world. You are doing yourself a great disservice. You will be wasting your degree, throwing away the opportunity to gain knowledge you will gain no where else, and you are shooting yourself in the foot if you really want to challenge the business model of architecture and that of developers. You cant challenge something you have no knowledge of. And trust me, interning on the side while going to school is not going to give you the knowledge and expertise you will need to challenge the system, I've done that too. I'm like you and want to change how architecture is practiced and perceived in the world but through my almost a decade of practice I know I could not have done it without the knowledge I have gain working in firms. I've worked in a large home developer company (300+ employees) and I've worked in a small 10 person firm. They both have given my knowledge and experience I would NEVER have gotten if I went out on my own at the start. I'm not saying going out on your own is a bad thing. I'm just saying you are going to miss out on a absolutely HUGE amount of experience and knowledge if you do. Really, really consider what you want to do. If all you want to do is REI and flip house then go for it....just knowing that you didnt need to waste money on a degree to do that. But if you really want to change architecture then you should go work in a firm. You will want to be picky about the firm you work for, not just any will do, but once you find that one that really treats you as an asset and not a tool...your learning curve will sky rocket.

Third, If your "mission statement" is really want you want to achieve for yourself then I would suggest looking up Johnathan Seigal. He is based in San Diego, CA. He is one of the pioneering architects of Architect as Developer (A+D) and is one of the most successful at it. This A+D model is 180 degrees from the traditional architecture business model and is almost never even mentioned in school let alone taught. If you want to fast track your goals you need to dive into this kind of business model. This is what I am wanting to following and I am currently practicing it in my own REI side jobs. If more architects practiced this model we could not only fundamentally change the architecture business model but we could change entire cities to how architects envision them to be and take the control out of the hands of developers who only care about the bottom dollar. I could talk for hours on this subject. So if you want you can PM me or we can have that conversation here for others to join in on but I don't want to distract from your main point in your OP too much. 

Fourthly, if you dont have a lot of cash and no job then you have two options: Hard Money or Private Money. BP literally wrote a book entirely on this principle. So its definitely possible but its not easy. If you have no experience that you can promote to back yourself up on it going to be a hard sell....just having your degree isnt going to be enough. Saying your dad has experience isnt enough either...unless he's going to sign the loans with you. The easiest way to start out is to get a loan from the bank, which requires a W2. Another reason to go get a job at an arch firm. There are more people on here that started out with a full time job and did REI on the side than those who started from purely hard/private money. You will have a much easier and much less stressful time on your first job if you going with traditional financing. Having a hard/private loan go south on you hurts a lot more than a bank loan. There also no reason no to team up with someone. Yes, your dad has experience and could be a great source...but he's also your dad lol. There a lot of good and bad things about working with family and every family is different. You just have to gauge that yourself. Teaming up will also make getting financing a lot easier no matter the type. 

I hope this was helpful and I wish you the best. If you have any other questions fell free to reach out. There are a good number of us architects on here (licenced and un-licenced). Lots of different experiences and expertise for you to throw ideas against.