Tag: hgtv

HGTV, A Cup of Coffee, and a House Flipping Venture

Posted on by Bobby Curtis

In 2016, Ian Curtis, asked if I’d meet him for a cup of coffee. While we share the same last name, it turns out the only relation we have is through real estate and our interest in restoring 100 year old houses. We met at Case Study on Alberta St in NE Portland to talk about house flipping. Ian had just gotten his real estate license. He shared with me he wanted to buy and restore houses. I had been house flipping in Portland for about five years by then, so I certainly had some experience to share. And tips.

I’ve always been open to talking with people about my real estate ventures. But also what has had them go well and the pitfalls along the way. By the time I met Ian, I had had many cups of coffee with many people who had even a twinkle in their eye when watching their favorite house flipping show on HGTV. And I love that, actually.  That’s usually where dreams begin in this line of work. Whether or not people go on to actually do the work and restore houses, doesn’t really matter. It’s exciting imagining, and then taking a few steps to see if its right for you.

I don’t remember everything Ian and I talked about that day, but I remember him asking thoughtful questions. I saw him as a serious, very professional, and talented, young guy. And I think I recognized an old soul, which really made me like him from the beginning. Also not bad qualities to have in this line of work.

N Cecelia Kitchen Renovation

From then, Ian and his business partner, Matt Clark, went on to flip a house. I remember that first one well. It was an old farm house in North Portland on N Cecelia St. It was such a thoughtful renovation, a ton of work, and people loved the traditional farmhouse remodel style they created. When we listed it for sale, it sold within the first three days.

Now, several years later, Ian and Matt have a dynamic real estate development business, Milk & Honey Restoration.  They take on complex home renovations, new construction and rentals. While I wish I could take some credit for it, they’ve really gone beyond what I’ve done. Though I do appreciate they still ask my opinion from time to time. 😀 They have their own ideas, style, and team. And I’ve been inspired not just of the work they’ve done, but the integrity they have in their work.

Their most recent remodel is at 2606 SE 16th Ave, Portland, an old Foursquare home with large garage they converted to a second living space. I asked Ian some questions about the house, and here’s what he shared

 

What was the inspiration for the remodel and design you chose?

Sometimes a renovation project feels like a blank slate where the original design and style is ambiguous or has been convoluted over time. Other times, such as this one, a house has such marvelous original style that staying true to that design feels like the best thing you can do for the home. Working with Pip Stevens, our local interior designer, we restored the many original archways, replicated original trimwork, and made design decisions that stayed true to the original architectural style of the home while bringing in fresh ideas and modern upgrades.

SE 16th Living Room Renovation

What was the most unexpected thing that popped up if anything?

One of the unexpectedly pleasant things that happened was, after opening up the walls, discovering how well built and well kept-up the home was. Some of the best “bones” we have seen in a home of this age. Probably the most unpleasant (though maybe not so unexpected) thing that happened was the delay in manufacturing times.  The pandemic supply chain issues are still affecting all sorts of products and it is hard to keep track of what products will have delays. For the last project, garage doors were extremely delayed. For this project, our windows took at least two months longer than usual to get back from the manufacturer, causing a pretty big delay in the project.

Did this turn out how you expected, or did you make any big changes along the way?

When we started the project we hadn’t decided how to finish the garage. The extra large garage with a kitchen sink and upstairs loft was once apparently used by one of the early owners, an Italian vegetable farmer or merchant, to wash his vegetables before selling them at a market. After some due diligence and deliberation we decided the best use of the space was to create a 1 bedroom / 1 bathroom legal ADU while retaining a single car garage space. The ADU can be used as a short or long term rental. The close-in, desirable location surely lends itself to, or however the next owner sees fit.

Ian and Matt provide an exceptional level of detail in their work. When you walk through this house, you want to sit down and stay for a while.  But it doesn’t just look pretty. When you discover the new guts of the house: energy efficient casement windows, roof, extensive electrical, plumbing and efficient heating and cooling updates, you want to move right in.

I had the opportunity to share this house and and before and after photos of the house on KATU’s Afternoon Live.  To see the short interview and photos, check it out here 

Bobby Curtis on Afternoon Live with Kara Mack, House Flipping & Portland Real Estate

For those with that twinkle in their eye after watching their favorite HGTV show, check out my house flipping tips.  Now let’s get some coffee.

The Right Project House for First Time Buyers

Posted on by Bobby Curtis

Right now, when it feels like there is 1 house for every 10 buyers out there, many buyers are having to adjust their expectation in a house. And if they see something they think will meet their needs, they are often writing an offer. Interestingly many of these buyers may have started off with a laundry list of what their needs are. As their offers have been rejected, they have boiled that list down to what their true needs are. In doing that, some buyers are considering houses that have the prime elements they are looking for, and then rely on the future renovation projects they will do to get it the rest of the way there.

Best Bang For Your Buck

Here are my thoughts on what projects new buyers should focus on. Buy something you can move right into (or move in within 60 days). Most traditional loans require buyers move in within 2 months, so find something that is livable. When it comes to projects to take on, consider the things that traditionally increase the value of the house. The kitchen and baths are a great start.

If you’re willing to do more updates, consider something that doesn’t need structural changes, or changes that will require an architect. Pulling in an architect increases costs exponentially. It also usually means city building permits are necessary in order to make those improvements. Many cities are back-logged right now, and might not even be able to look at those plans for 3 months. Stick to surface updates like paint, flooring, and lighting. For a handy person, those are even things you can do yourself. Thoughtfully updating these, along with the kitchen and baths, will typically bring back a high return for what you investment.

More Than Cosmetics

While I recommend generally staying away from houses with structural issues, making updates to the electrical can be easy enough, and is one of the most important upgrades to make when it comes to safety. Do yourself a favor though and hire a licensed electrician. If you find a home you love that has 2 prong outlets, no GFCI protection in kitchen or baths, or has an unsafe electric panel, these are prime for upgrading. Not only will it be safer, it adds modern conveniences. You will need these kinds of upgrades later down the road anyway to make further improvements in the house that you really want. While this electric project could average between $7,500 – $10,000 or more, if you’re buying in a market where the average cost of a house is over $500,000, that doesn’t feel like too much.

Looking for more of a project? Here are some tips for something more extensive: Click Here.

 

The Runner Up, Irvington

Posted on by Bobby Curtis

The One I Didn’t Get

In the summer of 2010, I had been working as an internal consultant for sales and marketing at a major pharmaceutical company. The next role for me within the company was to be a District Sales Manager. It had been a goal of mine for several years. I had taken on roles and jobs within that company over the course of five years in order to prepare myself for that sales manager job.

That summer I applied to five different sales manager positions within the company that would have moved me from the middle of the country back to one of many great cities on a coast, which I desperately wanted. Two of the positions, I was able to get a live interview for, which was a big deal. I thought one of my strengths was actually in face to face communication. It turns out, when you work for a great company in their sales and marketing department, there are many other people who share that same great strength. I did not get offered any of those positions that summer, although I heard I was the second choice for one of them. Which turns out, really doesn’t matter.

I was coming to the end of my 3 year assignment in the consultant role, and wasn’t willing to take on another role within the company. So I left. My #1 job didn’t pan out, so I went for my #2. I left the company, and the middle of the country, and started up my runner-up career. That was in real estate in Portland, Oregon.

The Runner Up House

Sometime getting your #1 house is a little like that. Your #1 doesn’t pan out, so you’re going for the runner up. That’s happening quite a bit right now. Many houses are getting multiple offers, and there’s only one person or family that’s getting that house. Often that means there are more disappointed than delighted buyers.

Or sometimes the #1 house isn’t what you thought it would be when you actually walk through it. There is only so much pictures, and even a video tour can convey. I have had several clients buy a property sight-unseen, and it’s worked out very well. In a competitive real estate market, sometimes that’s going to be the best option for getting a house that checks all of the boxes. And there are ways and strategies to mitigate that risk. But there is no replacing being inside the house and seeing it for yourself.

For my most recent out-of state buyers, their runner up house became their #1 house. Fortunately, on their trip to Portland to see the one they thought they wanted, we saw a couple others. This Irvington house was one of them, and is now the place they call home. Unsurprisingly, this house was the right choice for them, and I think this career was the right one for me too.

This restored beauty in Laurelhurst commanded multiple offers well over $1M. Check it out here.

Flipping a Duplex

Posted on by Bobby Curtis

While I haven’t restored a multifamily property before, I have remodeled plenty of single family houses. So, I figure it might be similar, just times two. I am just beginning this one. Right now, these side by side units mirror each other with one bedroom and a bath on the main floor, and another bedroom upstairs. The basement is a blank canvas, unfinished, and on the dingy side.

My plan is to add a bathroom upstairs to create a nice master suite, as well as an additional bedroom, laundry and family room in the basement. The two units will still mirror each other, but I don’t know…maybe we’ll change up the finishes on each side. Updates to come as we move along.

Living and Dining Rooms

 

Will my house sell for more money when I stage it?

Posted on by Julia Robertson

Perceived Value.

A homebuyer determines the value of a home before they even enter your home. The NAR reported 55% of buyers find their home on the internet. First impression is everything. A photo can speak a thousand words… but don’t take my word for it, see for yourself and review the research below. Forbes, the National Association of REALTORS®,  and HGTV agree that staging your home will earn you a positive return.

 

The photos shown here are from actual listings in Oregon & Washington, that I sold, and either personally staged or hired a professional stager. Some of these listings were full of clutter or located in a logistically difficult location.  One listing was on a very busy road with almost no driveway or garage and several unfinished construction projects. Another had little natural light and a slight pet odor. The last home was the most expensive house in the neighborhood, surrounded by homes that did not maintain their yard(or not attractive from the exterior), and did not have a garage. The point is- there may be other factors that make a home more difficult to sell. First impression is everything. If you can WOW potential buyers regarding the interior and exterior, the other factors are minimal in the end. A common rule of thumb for a home on a busy road, is to reduce the price 10%. If there are factors that already reduce the value of your home, wouldn’t you want to make up for it in some way? And if you could add 10%+ value to the true value of your home by re-arranging furniture or staging it- why wouldn’t you?

Forbes reported, “According to the National Association of REALTORS®, for every $100 invested in staging, the potential return is $400 . Compare that to the average sale price, which is a reduction of 10-20% from asking. So an average home with a $400,000 asking price will be reduced by $40,000 to $80,000.”

A great quote right out of an HGTV article, “I see many home sellers confuse staging with decorating and consequently resisting the process and the recommendations of the staging professional. But the reality is that the moment you commit to marketing your home for sale, you need to commit to transforming your home into a place that potential buyers can easily picture as their home.”

Staging is not only about furniture or de-cluttering. Staging a home for sale is a process that starts by preparing a “listing-prep” plan. After I meet with a client and sign a listing contract, we do a walk through together and make this plan. It can include a calendar of timelines to get household projects completed, packing, storing furniture, and touching up paint. As you can see from all of the above “before” photos, lighting makes a HUGE difference. Lighting, furniture placement, and professional photography create the WOW. Once we have all those elements, the perceived value of your home is at its highest and best. When your home is presented at its highest and best value- you sell for the highest price! Actual value depends on your location and condition of home. To find out what your home value is and what staging can do to improve the value of your home- contact me.

If you’re curious what it’ll take to sell your home, call me! I’d love to discuss future real estate opportunities with you. Call, email or text anytime.

Julia Robertson | Broker Licensed in Oregon & Washington

Insta @realestatebyjulia

541-505-1111 | julia@rebyjulia.com

Living Room Realty

Flipping Houses: Interview with Bobby Curtis Part 2

Posted on by Bobby Curtis

Bobby Curtis was recently interviewed on how he finds good houses to flip. Here’s the second part of what he had to say.

1. What are the key financial considerations real estate flippers should think about before they begin a new project?

Make sure you have a reliable financial source that will bring you all the way through the project. Be financially okay to keep the house longer than you need to so you don’t run out of money. Only dip into your own money that you’re willing to lose. I normally don’t recommend using retirement money, or your personal home as collateral.

2. How do you determine a budget when it comes to flipping a property?

First I figure out what work the house needs, and then I figure out what I can buy it for.

A good general rule is that you can purchase a property for 75% of the after repair value (or what you’re going to sell it for) minus the cost of repairs. For example, if I can sell a house for $400,000 after I put $50,000 into it, ($400,000 * 75% – $50,000 = $250,000).

3. Why is project management so important in house flipping?

Timelines, schedules, budgets and great communication with your contractors can make or break how successful your flip is. You or another project manager who has your same interests down to core should be there every day there is work being done. Not all day long, but checking in. I recently took a 5 day trip to Alaska Ain the middle of a project. Even with a crew I’ve worked with for a while, things get handled differently (better) when someone in charge is there to check in, make decisions and overcome challenges.

4. What are some key mistakes that can make house flipping a flop?

Interesting you should ask. I did an interview answering just this question. Click Here.

Here are the nuts and bolts:
A. Putting in materials and finishes that don’t work. Make sure people are already buying houses with the design ideas you are using.
B. Buying a house with no good comparable houses
C. Putting a house up for sale before it’s 100% complete
D. All D-I-Y work
E. Taking too long

5. Anything else to add?

You can only do so much thinking about it and research. If you want to flip houses, you have to get things in place, buy a house and get started. You will learn things along the way. When things get tough, bring in experts in the area you are struggling in. It will be one of the best decisions you make. Miss part 1? Check it out here.

Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066

Flipping Houses: Interview with Bobby Curtis Part 1

Posted on by Bobby Curtis

Bobby Curtis was recently interviewed on how he finds good houses to flip. Here’s what he had to say.

House flip – stately home in NW Portland

1. How do you find a good flip?

I find a good flip by keeping my eyes and mind open. It’s not just about finding a distressed house that needs work. There are many people out there flipping houses. I’ve discovered I need find something that presents a challenge that other people (flippers) don’t want. And I have to get creative to solve a problem in a way many end buyers will love.

2. What are the key steps to successfully flipping houses?

The key steps are:

A. First, hire a great real estate agent who is an expert in the area you’re looking in, and knows a thing or two about fixer uppers
B. Buy a fixer upper at the right price, and make sure there are good comparable houses for the price you plan to sell if for fixed up.
C. Get solid estimates for the work that needs to be done, and hire dependable contractors to do the work

D. Hire a cost-effective designer, or be one yourself. This is not a time to try out your super specific design ideas. You want something that will appeal to most
E. Get it done, and do it quickly without compromising quality. My goal is 4-8 weeks. If this is your first flip, don’t go over 3 months. Ideally you want to buy the fixer and sell the fixed up house in the same market.
G. And finally, sell it. Don’t nickel and dime the buyer who places their offer. You will often give more than you want to. That’s okay if you’re making enough money on it.

3. What should real estate flippers have in place to make sure the process runs smoothly

A great real estate agent, dependable contractors, a personal support network, and a reliable financial source.

4. What’s your best advice for working with and managing contractors? How do you cut ties with a bad contractor legally?

Very good question. I’m professional, and I hire professionals. That doesn’t mean the best price, because WHEN shit hits the fan, you want to know you can count on them. I hire a mix of contractors who do the work themselves, and larger companies who have crews. Equally as important is I work with people who specialize in fixers, not new construction.

I’m in this for the long haul, and most people who want to get into flipping houses usually want to do more than one. So, if I cut ties with a contractor, I usually give them more than I think they deserve and just agree not to work together again.

Lastly, reputation is important, and frankly you’re very exposed when you flip a house. If they want to make things difficult for you, they can. Most of the time when you want to part ways, they do too. So, shake hands and agree to be done.

Interested in Part 2? Check it out here.

Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066