@Dylan Long You are very helpful. I wish you the best in your journey. I also feel very comfortable interior designing for homes under the $400K range. For homes in the $400K to $600K range, I defer to my team members that are more aesthetically inclined. We also partner with flippers that focus on homes in the $1M to $1.5M range, so we learn a lot from them as well. My team is also ramping up on learning design in the same manner as yourself. Personally, I would like to work with Interior Designers in the manner like @Andrew Cordle - Andrew, great setup!
@Karen Margrave Regarding your questions:
(1) What is the price point of the houses you are flipping? What is the profit margins?
$500K+ 15% ROI+
(2) If you hired someone that has celebrity clients and you knew that she was a very high end designer, and in demand, I can understand why she wants things done her way or the highway. It's her name and reputation on the line, and if you have to cut corners in order to meet your budget, it could end up costing her far more than she'd make on your deals, because your project wouldn't meet her standard.
Agreed. The thing was, she approached us to push the conversation toward the sweat equity arrangement I disclosed. I was clear that we wanted a collaboration as equals: our team with the money, project management, and real estate knowledge; and her team with the design. I felt I was clear that there would have be a balanced approach.
(3) You'd probably be better off finding someone that is more within your budget, and does the type of design that you are looking for. It may be that you can use a stager, there are many in southern California that are really great!
Agreed.
(4) It seems that you are working on an extremely tight budget and were trying to find a creative way to get design services and pay for it later. You could probably have found someone to do the work and take payment upon sale of the property, etc. Out of curiosity, did you have anything figured for interior design in your cost estimates?
Yes, for the project we were working on, it was the $17K disclosed. Each project is different though, depending on how much meat is on the bones and what is needed in design work.
(5) Did you have any type of contract with her that specified exactly what her job was and what was expected from you and her in detail?
Verbal. Big mistake and lesson learned. Will have everything in writing moving forward. Is it normal to have some sort of penalty clause, where if the Interior Designer quits on you, causing delay in the project or worst, a change in the design due to inability to complete that vision, that we could collect damages? How would that look like?
@Karl Pierre Your input is invaluable. Thank you.
@Rick Baggenstoss We already do a lot of the things you discussed. We're trying to get to the next level on our designs.
