Questions on architects and designers when flipping?

Question

When I get a bit deeper into my investing career I will be diving into the niche of buying destroyed "zombie houses" (term courtesy of BP Podcast 201) and completely renovating them into beautiful, modern, and trendy homes available for homebuyers to purchase. I know that an architect and a designer will be vital members of my team when tackling these types of projects, but I'm curious on the workflow involved when using them! I'm hoping some experienced house flippers can enlighten me a bit on this process!

Some of the major questions I have are:

Will an architect and designer work in conjunction with each other? Will they be able to work together and implement both visions they have and formulate a solid plan?

Will these two team members handle the scope of work? Since they will be designing basically the entirety of these projects, to what extent will they create a scope of work and budget?

In relation to the above question, will these two team members project manage the rehab? Since it is their vision going into the house, will the architect and designer oversee all of the components involved to ensure proper completion?

Again, in relation to the question above, how will hiring contractors and purchasing materials work when working with an architect and a designer? Will they have contractors they prefer to work with or will I have to assemble everyone and get the entire team on the same page? How will the purchasing of materials work now that the layout and design of the house is up to my two new team members?

Also, feel free to dive deeper into this, beyond the questions I've asked. I am trying to draw up a system to implement into my business regarding an architect and designer and as much clarification as possible on this subject would be massively beneficial.

Thanks BP!

Ashley Owens · Answer

@Hunter Harms If you are working with an Architect that is only an Architectural firm then yes it would be on you to hire the contractor. The Architect could recommend contractors they have previously worked with that they feel would be a good fit for your project or projects. You could also go with a Design-Build firm. This is often a company that employs both Architects and Contractors within the same company. This is the type of firm we are at [RE]Architect. Do your research to see which you think would best benefit your business model. There are pluses and minuses to both ways of working. Prior to starting my own company I worked in both types of firms, a Design-Build and a traditional Architectural Firm. Obviously I felt the Design-Build was the better method since that is how I organized my company, but there are a lot of varying opinions on this.

In regards to the your second question, the Architect can help you create a scope of work, but this is usually done by the General Contractor. The GC for short is typically responsible for creating the SOW, providing project costs, and managing the construction of the project including hiring and managing the subcontractors, organizing tasks and schedules, and purchasing materials while coordinating deliveries.

Whether you go Design-Build (Architect & Contractor same company) or the Design-Bid-Build (Architect & Contractor are different companies), it is best to have the entire team on board as soon as possible. The best projects I've done always had the whole team working together from the beginning. This makes sure everyone is on the same page and has always led to a better quality project that came in on time and on budget. This has been true from projects that were 650 SF to 80,000 SF and $15,000 to $15,000,000.

Mala S. · Answer

For a small scale project like the renovation of a single family house, you should find an architect who will also be the designer on the project. This will streamline the process and will likely be a cost savings for you. That being said, architects work with designers all the time and are very familiar with it.

The architect can produce the scope of work.

The architect may have some recommendations regarding good contractors to use, but ultimately it is the owners responsibility to choose and hire a contractor.

It is common to hire an architect for the construction administration of a project (but not a necessity). Note that construction admin is not the same as a project manager.  The architect will review shop drawings, fixtures and materials proposed for use by the contractor to ensure proper coordination, suitability and quality. This can help prevent the contractor from making costly mistakes and cutting corners by using substandard materials. The contractor will typically purchase all the materials. However, even if you hire the architect for construction admin, you will still need a project manager. If you are just starting out, this person may likely be you. Actually, if you are starting out and on a tight budget, it would not be unusual for you to handle the construction administration and project management during the construction phase and employ architect for plans, building department filings and design only.

I hope that helps!

Will G. · Answer

I typically don't find giant piles of cash lying around on the sidewalk... meaning if you are going to flip homes, you would be very lucky to find "equity" or enough meat on the bones on a deal to hire a g.c., much less a designer or architect!

Being 20 are you looking for a hobby or a career? If the latter, your first flip should be a great learning experience, by doing everything yourself! Learn all the trades involved!  Figure out the design youself! There are lots of resources (sketchup and the like) you can use for space planning

It will make you a vastly better investor in the long haul.

If you need experience to get started go work with habitat for humanity, and learn how to build a house, which will teach you how to rehab them.

Obviously hire out electrical work or any plumbing that involves, major reworks, but otherwise you will benefit from knowing how to do all this stuff

Will G. · Answer

Hunter, you have a GIANT advantage, in that you are young, know what you want to do, and are not afraid to get your hands dirty!

Of course you will make mistakes and encounter ups and downs, but if you are diligent and work through the rough patches you will be successful!

Study the real estate cycle and understand how that works, but don't let it stop you from moving ahead.

And if you need money and contacts to get started, consider becoming a realtor, (especially commercial if possible). It may sound daunting and typically requires a certain personality type, but that won't be your endgame it will just help you achieve your goals, and will teach you loads about the industry and be a great inside source for "deals"

Best of luck to you!

Ashley Owens · Answer

@Hunter Harms On average Design-Build tends to be more affordable than the separate Architect-Builder, but there are exceptions to everything. Finding someone that aligns with your interests isn't about how the firm is setup, but rather about the work ethic and performance. You want to be able to see, and if possible, tour projects they've recently worked on so you can see if their quality and value are in alignment with what you're looking for.

Again, this is very generalized and somewhat stereotyping, but typically the Architect is the designer when it comes to a pleasing aesthetic, quality materials and functional design. The GC is responsible for overseeing the construction of the project and managing everything from the budget and schedule to the subcontractors on site. Subs are always hired separately, they are the specialty guys like electricians, plumbers, drywallers, painters, etc...

There are 2 main beliefs people have for hiring the Architect team separate from the GC team. They are usually that they believe they get a better design from an Architectural firm because Design-Build firms are viewed more as the blue collar designer that gets it done. As I mentioned, I've worked for different firms in both styles and the work is just as good or just as terrible from both. It has nothing to do with the setup. The second reason is people believe they get better pricing having the separate companies because they can get multiple bids for construction, but the cost of construction is what it is and they don't account for the cost of bringing the construction team up to speed and what they may have missed in their bid. Really just do some research and see what people say on both types of construction.

Ashley Owens · Answer

Great advice from @Will Grabert about volunteering and doing the first one yourself. The more you can do hands on the better place you'll be in for future projects when you do need teams.

Good Luck! You got this!

Hunter Harms · Answer

@Will Grabert Thanks for the response! That advice about volunteering with habitat for humanity is some of the best advice I think I've gotten on BP and I already am looking to volunteer! Also, I am going to be pursuing this as a career so I like the advice you gave me regarding doing the work myself.

Brian Pulaski · Answer

@Hunter Harms as someone who spent years working in the design, construction management and mid level General Contractor (management), I would spend some time before you get a deal and figure out what the costs these firms are going to charge. If the Architect wants $7500 to draw up plans and attend 2 meetings/walk thrus through the project, and an interior designer wants $5000 to do their design, finish choices etc... This is the information you want to know. The budget and house will dictate whether these additional team members will make sense.

Hunter Harms · Answer

@Ashley Owens Being an investor, would it be hard to find a Design-Build firm that could align our interests in finish level, efficiency, and price?  I could imagine these services being quite pricey and not so investor friendly, but maybe I'm wrong?

Also, what are the advantages of hiring each team member individually; architect, GC, subs, etc? I see the advantage being in a wide array of different people available to complete the job, different bids, investor friendly contractors, etc!

Hunter Harms · Answer

@Mala S. That helps a ton, thank you!

So I would be hiring an architect to draw up the plans to reconfigure the home and to make a design layout, then it would be on me to find a contractor capable of executing those plans?

Also, the architect helps me to create a scope of work, could they also help me schedule and time manage contractors accordingly? They would know what needs to be done first, what tasks can be done during others, and since I'm a newbie it would really benefit me to get some expertise on who to have in, at what time, and doing what.

Questions on architects and designers when flipping?

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