Is it a "flip on" or a "flip off"?

When it comes to flipping and rehabbing properties, it's important to know who your buyers are for that specific area so you can focus on "the look" that will appeal to multiple buyers. A standard, cookie-cutter look, what you think looks good and/or what someone tells you may look appealing are not always correct. There is actually a lot more to it than you may think.

When I first started flipping and rehabbing homes for real estate investors over a decade ago while living in Los Angeles, CA, I was asked to swing by an assortment of properties from blue collar neighborhoods to luxury hillside homes that had been sitting on the market for months and give the investors my opinion about why I thought buyers weren't making any offers. My territory was Los Angeles County, so I had to cover every nook, cranny and demographic you can think of...no neighborhood was off limits! I was informed that 80% of their properties were called "bread and butter flips" because the budget and listing prices were lower and sold faster compared to properties in the 20% range which were typically in artsy and upscale areas and required a larger budget. This information was valuable and what set me on track in knowing how to approach each area no matter where I was. Even though my background was in interior design, set design, visual merchandising and construction, I had a keen eye and was solid with details, I also had to know how an investor thinks and how a buyer thinks. I was asked to figure out some simple inexpensive ways to spiff the places up a bit with the goal of getting solid offers from multiple buyers. After evaluating the properties my conclusion was that all lacked curb appeal, had unkempt front yards, the house colors inside and out were drab, and the properties as a whole had a dirty, dingy and dated feel...not a good first impression. Most importantly, none represented the buyer!

As they say in real estate, "location, location, location"! While that's true, it's immensely important to truly know about that location so you know how to approach your flip or rehab. One of the properties I evaluated was located in Atwater Village (shown in the photos) which is an eclectic area in Northeast Los Angeles with an artsy vibe. I knew the area well since I lived in neighboring Los Feliz. As I walked up to the property, the grass looked odd. Upon inspecting the grass, it looked like dark green paint was sprayed over the brown patches...grass graffiti! I had never seen anything like it. The investor told me he applied green colored "lawn spray" that was recommended to him by other investors. Lawn spray was "a thing" when investors didn't want to spend the money on changing the landscape and/or keeping the yards green with water. I advised him we need to make sure all properties are green, clean, inviting and lively looking. A dead looking yard will not appeal to anybody!?The exterior of the home had not been painted, was dirty and looked blasé.?I thought it needed a fresh color and had to contrast and complement the adjacent homes.

My exterior color choice was based on the black iron rails on the front porch, the black roof and the interior tiles throughout the home. My designer motto has always been "you have to bring the outside in and the inside out...it makes a place look cohesive". The investor asked me about my plans and was worried about my exterior color choices. He thought the avocado green and black accents might make it look like a Halloween house, so he sent his acquisitions manager to check it out and report back to him. On the interior of the home, I chose colors to enhance the existing tiles since I felt the buyer would be into colors, not neutrals. Since I lived close to the property, I knew my color choices would be appealing to buyers and told him to trust me. He decided to follow my lead to see what happens.?The final result...the house sold to television personality, Ross Mathews instantly after placed on the market again. The house that was once a flip off became a flip on! To my surprise while watching an episode of "Flipping Out" a couple of years later, Ross hired the well-known interior designer, Jeff Lewis, to turn the detached garage and backyard into a fresh new space which ended up looking stunning! I must add, he kept the house color I chose.

In the cases where you're not familiar with the area, buyer or demographics, you might have to put extra effort in so you know what to do. You have to do your due diligence to the best of your ability. I suggest walking around the neighborhood, see what others have done to their homes and talk to neighbors...they fill you in on what's going on, what's not going on and what's needed. Neighbors are always valuable sources if your property is surrounded by them. These are simple, free, effective ways to help you figure out "who" your buyers most likely will be for your flip or rehab.