As an interior designer, I work with a number of property investor clients. These projects are typically “buy and flip” projects however, I have worked with clients who have purchased property to rent out (known as “buy and hold” properties).
I have had people ask me how they can get involved in all of this fun. Recently, I had the opportunity to reflect on what it is that I love about working with a group of property investors. Here are my top 3 reasons why I love this type of client!
Property Investors: Reason 1
There is a HUGE trust factor when I work with property investors. They need to trust me to make the best decision for the design, the budget, and the construction timeline. They also need to trust me with decisions that I believe are in the best interest of the property.
When a project starts, I lay out the guidelines to all of the investors. These guidelines are pretty clear. There is one guideline that I am very strict about. Here is an excerpt that was sent to a group of investors:
Please note: we ask that you do not access the home during the renovation. There are many moving parts to getting this turned around in 3 months. I have given my trades strict instructions to not allow people to enter the home without Robin or I being present. Please feel free to follow along through my Social Media channels. Although I do not need to explain this, it really is for everyone’s safety. I also don’t want my trades to stop working for a tea party. They’re there to do a job and get out (I’m saying this with no bitchy tone).
An excerpt from an email I sent to investors
As we work through investment projects, my investors get to know me well. I am diligent in sending out weekly updates and emails to keep the investor in the loop – yet at a distance. That is the way I like it! The investors that work with me know that while this is a partnership, it is me who is running the show and driving the ship. Who wouldn’t love that, right?
In return, I trust my investors. I trust that they will not bug me during the project, that they will not text me every single day, and that they wish to have limited involvement.
Property Investors: Reason 2
Leave me alone
Did you catch the sentence above when I used the wording, “…limited involvement”? I say that tongue-in-cheek, but in all honesty, I really do mean it. To give you an example below is a really brief way I typically work with investors to buy and flip properties:
- My real estate agent (Robin Spiers) and I find a home that we believe will have a good ROI after a renovation.
- After we crunch the numbers, we provide a ‘report’ and send it out to our group of investors. This report is put together by Robin and shows a ‘good, better, and best’ case scenario for the property.
- When Robin and I present the numbers, I do not present the design and concept to the investor(s). Moving quickly on a property is essential. As all of this is time sensitive, we don’t want to miss out on an opportunity of a property. It is in this report that we disclose what kind of investment we are looking for.
- From the information listed above, the property investor either chooses to invest or not.
- Once we secure the property, it is up to myself and my crew to get the work done.
- When completed, I present the newly renovated property to the investor(s). We often hold a private viewing for the investors if they are located in Calgary.
- My real estate agent sells the property!
- I celebrate with a glass or 2 of wine!
Here’s where I get to the, ‘leave me alone’ part. With all investment clients, we do not shop for products together. I do not go over any selections I am making. Do I need to get approval for sourcing I carry out? Oh no. It is often that I do not even go over the fine details. I am in charge. Right from the beginning, I am on my own.
Don’t get me wrong, I really do love working with my residential clients, however, I love being able to make quick decisions, make changes on the fly (if need be), and adjust without having to wait for approval.
Property Investors: Reason 3
Show Me The Money
Hello??? Of course, the end goal is to make money for investors. As I often will invest in these properties as well, I have a lot of skin in the game to get a good return. It is my main goal to stay on budget, stay on the construction timeline, and make money!
When investors make money, they are likely to re-invest in the next project. For all of us, that is a win-win.
Property Investors: Another way to invest
Investing in renovation flip properties is not for everyone. There may be people that wish to invest in property but don’t know where to start or how it even all works.
My very good friend, Kristal Heise, with Mahalo Properties, offers a different way to invest in properties. Kristal offers investment partnerships in residential and commercial real estate in Alberta. If you were to ever have a conversation with Kristal, you will immediately know that she has her finger on the real estate industry. She is one smart lady!
With her joint venture partnerships, Mahalo Properties looks after the properties and the tenants. So you can be a landlord but not do any of the work!
Mahalo Properties only manages properties they have invested in themselves. As you can imagine, this makes Mahalo a great joint venture partner as well as an invested, responsive landlord. A total win-win!
Investing in Real Estate
I love everything about real estate. I love the chase (to find the right property), I love the crunching of numbers, and I love transforming a space. What I love the most is knowing the work we do will provide a home for a new family. Where there will be a roof over their heads and where the creation of lasting memories can begin. Nothing gives me greater joy!
Wishing to talk about getting involved with investment properties? Contact us today to set up a discovery call to see if we’re the right fit!