Thursday, January 28, 2010

The Great White Tile Debate, Crisis, Melodrama....

I am sure that everyone has caught on to the fact that I am NOT the rehabber. Actually, "the Rehabber" is an amalgamation of several people. Rehabbing itself is actually a catch all phrase for tons of different tasks and job positions. People that choose to be on a rehabbing team tend to wear tons of different hats. The complexities are insane, because what you end up with is a cast of characters who are constantly redefining their roles to fill in the gaps. The Investor is a Lender, Book Keeper, Task Master, List Maker and often a Personal Shopper. The Contractor is a Mr. Fix-It, Voice of Reason, The Check and Balance to the Designer, Demolition Man and Manager of Men. The Real Estate Agent is a Bird Dog, Historical Consultant, Advertising Guru, Blogger, Housing Stock Analyst and Default Designer. Real Estate and projects are a delicate dance where everyone begs not to have their toes stepped on. So, just try to imagine for me, what happens when these roles overlap, are in direct opposition, or a constant state of flux. It can be quite like dancing with a partner that doesn't know the steps. I know this because I have experienced this realestatic (I just made that up) phenomenon first hand and have caused many a gracious partner to politely excuse themselves during my brief time "dancing" salsa.


This week some seemingly simple decisions were to be finalized with Terracotta. In addition to selecting fixtures, a pedestal sink, what paint goes where and other odds and ends...We had to pick out a bathroom floor. Now, this may not seem like a big deal, right? WRONG. Originally, my big vision as the Designer was to preserve the small white hexagon tile that was on the floor. Dan the Contractor had meticulously removed the linoleum that was covering it to make my dream a reality. This idea also appealed to the Investor and Owner of Stärke, because it saved money while keeping some of the original historic charm of the house. The Plumber however, seemed to have different plans. While putting in new plumbing up to the second floor, he ripped a good deal of the floor, MY floor OUT. In my fury and disappointment I could have assigned the Plumber a myriad of different titles at that point in time, but never saw him after the incident.

What were we going to do? It is a disaster, a true drama that seemed to have no suitable solution. Dan, the Contractor was home sick or I am almost sure he could have soothed the situation with his words of wisdom in his role as, Worksite Sage. So, the Investor stepped in and put on the Designer hat that he took off of my head. Going to work, he began suggesting suitable replacements that would stick within the budget and be readily available. We needed that tile, pronto. Best laid plans...




I was so set on that white hex tile that nothing suited me. I was not in a good mood and retreated to the Circa Office. The Investor had more ideas for replacement tile that was very close to my original vision and kept with the vintage feel. I myself, was hoping I could convince him to replace it with the same tile. Needless to say, I wasn't very receptive to any of his ideas until I had a night to sleep on it. Poor guy, he had always been pretty receptive to my suggestions and I was throwing his on the ground and stomping on them. Waking up this morning I had a fresh pair eyes and clear mind to assess the situation. There were several choices swimming in my head. I didn't like any of them. It is the finishing touches that help sell a property and none of my choices seemed like a "right" fit. Late this afternoon I still had not come closer to a choice. While working on a new listing that is going to ROCK (4044 Shenandoah) I got an email with a picture attached. It was the Investor turned Designer emailing me with a perfect fit! I had wanted an all white bathroom, so I had only been looking at white tile selections. He had decided to break up the white theme with a vintage black/white pattern, an option I hadn't even entertained. I LOVED IT, and it was, "oh so vintage". It was then that I realized I had broken a cardinal rehab rule, "always remain flexible because Murphy's Law is always in full effect". I had also broken a design rule that called for you to, "think outside the box". I had over emphasized the importance of my vision of how things should be.


So, here in my role as Blogger I admit, in writing: Trading your hat for another or becoming the follow after being a lead can make for some of the best final products ever. Pride has little place in business, and with a little determination one can excel at a role completely foreign to them like the Investor did.



One thing I have failed to mention as a BIG BONUS was there is new plumbing and water lines from the basement all the way up to the second floor. Maybe a new bathroom floor isn’t so bad of a price to pay. I mean, I assume that a new owner will appreciate not having to deal with any of that in the foreseeable future.

Monday, January 25, 2010

WTF? Oh no, you didn't!

I mean, "What the Flip?" ;). What were these rehabbers thinking? Do you see it? The picture wasn't the best, but I am still pretty sure anyone that is capable of viewing this picture can see the flaw. The door frame is completely crooked. Not to mention, the lock that was installed to accommodate the giant that might buy the house. I am 5 feet 2 inches and I couldn't unlock that back door to get out if there was a fire. Maybe, it's a new child safety feature? I am not too much taller than many children. Just a thought.

Unfortunately, this type of work on rehabs is very common. This house has been redone and is now on the market. Old houses are never, I repeat, NEVER going to be completely square. That is just a fact. However, you can fix certain things to avoid this "fun house" effect. In my opinion, it is worth the extra money to fix things like this. Cheaply done rehabs=cheap housing prices and rapid deterioration, which affects everyone in the neighborhood.

You CAN do good rehabs AND still make them affordable for the first time homebuyer crowd. In my opinion, first timers who don't have a good surplus of extra cash should be extra careful with what they buy in order to avoid costly repairs in the future. It is worth a little more money up front to buy a better product (you can stretch that cost over the life of your mortgage). Tons of costly repairs the homeowner can't afford, CAN lead to foreclosure. In that case, we have another crappy house in need of tons of repairs back on the market. If a good rehabber doesn't pick it up, we wind up in a vicious circle. In my opinion, the City deserves better.

I am not saying that houses in need of a little extra love shouldn't be attempted by owner occupants. I show these types of houses ALL the time. However, I am very careful to be very realistic about the time, dedication and potential cost to the customer and make sure to communicate it. Education IS key, this is NOT "Flip this House". A rehab or even seemingly simple repair is not completed in an hour. Not every buyer client has the vision or stamina to take these types of projects on. Just my two cents :) Bottom line, get your inspections, make sure you have good "bones", get quotes on projects that you need to get done immediately BEFORE you buy and have fun!

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Saturday, January 23, 2010

Cut a Hole, Cut Costs and open up the floor plan


Earlier, I told you that I would post pictures of Victoria's transformation. We needed to open up the space between two rooms to make a living and dining room. Anytime you can improve the "flow" in a floor plan you should do it. Sometimes it can be rather expensive, but in this case the fix was simple. I always tell my buyers, "There are two things that you can almost never fix. One is the floor plan. The second is the location, everything else is doable".


Dan was able to cut the hole and save the extra 2 x 4 material for use on another project. This not only saves the investor money, but it is very earth friendly. Way to go Dan!



Meet Victoria

Victoria is getting ready to hit the market soon. A great first time homebuyer house with LOTS of space. I went over to check on her today. My friend Lucia lives across the street but she wasn't home. I guess she is busy studying somewhere in her quest to be SUPER SMART with another degree.

I expected Dan to be the only one there, but the house was full of people. Some were taking out wood to be reused, others were painting. I myself, had taken a day off. Well, as much of a day off that anyone in real estate can. Dan was busy opening a wall between two rooms to restore the original floor plan. I took pictures of him working to show you all later today.

Cutting an opening in between rooms is a short weekend project for Dan. In the time I was there he had almost gotten things finished. Now, I am off to get my car cleaned out and possibly an oil change. I have to keep my car working properly so I can take people around :).

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Friday, January 22, 2010

Meet Terracotta



















I bet you have all started to wonder why I don't identify theses houses by address. The reason for it is simple, theft. When rehabs are taking place there is a risk that your tools and work can get messed with. So, until we get a little further along I will refer to this lovely Tower Grove South home as, "Terracotta". Eventually, you all will know where it is because I will announce it going on the market.

Terracotta is in need of a little more extensive rehab than Gingerbread. Not to mention, that it is a larger property. Located in the trendy Tower Grove South Neighborhood it's all about location with this one. The new owner will be able to walk to Tower Grove Park for kickball and then to S. Grand for Vietnamese! Starke (the investor on this project) bought the 3 bed/1 bath house out of foreclosure a couple months ago. It needs all new plumbing, a new kitchen, some electrical tweaks, a new deck in the back, a double garage door and many other things.

Everything that needs to be done to this house can prove to be too much work for many investors to do on their own. For this job, Starke brought in Dan Carter. He does excellent work and has proven to be reliable. I like Dan, we have a good working relationship. I am the one who helps pick out finishes, colors, kitchens etc., and frequently I have to collaborate with Dan on what is actually feasible. So, when you hear me mention Dan from now on, you will know who it is. Dan also did the work on one of my listings http://www.6525westpark.com/

No Ladder? No Problem!

Put the refrigerator in the middle of the room under the hole for the attic. Climb on the kitchen counter and jump! Next, hang on for dear life and pull yourself up. Did you notice that there is not a picture of me doing this?
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Thursday, January 21, 2010

Let's Do the Time Warp, Again!

The title of this blog is in honor of my good friend Lucia who does the Time Warp dance when feeling blue. Hey Lucia!

So, here is the Gingerbread I have been telling you about. This will be our subject project property for now. I may start blogging about other rehabs as they come along. I just hope it doesn't become too confusing.

All though the outside was cute as a button, the inside needed help, major help.There is "good" old, and "ugly" old. Not every trend is worth saving. There is a big difference between vintage and dated. A lot of what was in the Gingerbread was "dated" not historic. See what I mean?

That kitchen is SEXY, er quaint?






Investor Evicts the Pink Panther

It alwaysa amazes me what people leave behind after they move out.
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Cute Little Gingerbread...Needs a little TLC












Anyone that has ever searched on http://www.realtor.com/ has read the marketing remarks that say, "in need of a little TLC". Here is a helpful hint folks, a little TLC usually means it needs TONS of work. We got pretty lucky with this little gingerbread though, on the surface it just seemed to be extremely outdated. It is funny how in your mind taking down some wallpaper, gutting a kitchen, overhauling a bath and picking out new fixtures never seems like a lot. Let me tell you, from watching these guys work on it every single day, all day. It is a LOT of work.

Before "the Guys" as I like to call them, could get started we all had to have a general idea of where we were trying to end up. So, we made a list, checked it twice and then parted ways to take care of different tasks. These "tasks" are what is going to make up this blog.

Acquire a Property

The first step in successful rehabbing is, "buy smart". It is worth the money to pay a little extra to be in a in demand neighborhood with good walkability. The problem then becomes suitable properties are WAY HARDER to find. Bungalows are always a good bet because there is always a first time homebuyer market, even during tough real estate markets. So, after much talking with the investor we decided that a small bungalow in South City would be the way to go.


The last project that this particular rehabber took on was a complete gut rehab. There was no option for him to save any of the architectural details on that one. Still, I was highly impressed with the level of craftsmanship and attention paid to detail on the project.

Now that I had found an investor with a superior team capable of completing difficult rehabs on board. I went on the hunt for more properties. Searching high and low we finally stumbled across one that fit the bill exactly. Another investor had too many projects at the time and was willing to sell one of his projects to us! It took forever to close the deal since it was a short sale (for those of you who don't know a short sale is when the bank allows you to sell the property for less than what is owed and they take that in lieu of foreclosure).

The house, we will call "Gingerbread" is a cute 2 bed/1 bath bungalow with a one car garage and sunroom addition. Problem with it is, a lot of it's original details had been covered up or replaced in favor of hideous seventies paneling, dark kitchen cabinets, beige carpet, out of date wall paper and brass fixtures. At the time of purchase there was no way for us to tell what was under the carpet or behind the paneling. In the rehab world, nothing is ever as straightforward as it seems. We were in for some BIG SUPRISES!

This rehab project is still in process. I am going to have to blog a bit to catch you guys up to where we are at. I will let everyone know when I am blogging in real time!

Wednesday, January 20, 2010

Why, do you ask?

I have been working with investors more lately. Which, has been good and at times very challenging. I hadn't been doing much work with rehabbers at all until I started helping my broker, Christopher Thiemet find good deals. I almost looked at rehabbing as the antithesis of what my business model was. I specialize in historic and vintage in Saint Louis City and surrounding areas, not vanilla flips.

A poorly done rehab can ruin a perfectly good home. I can't tell you how many times I would walk into an architecturally awesome house in Tower Grove South (and other neighborhoods) and be saddened by the fact that an investor had laid beige carpet everywhere, painted the walls a slightly different beige and installed a cheap ready made kitchen. I understand that spending the least amount of money to maximize your profit is the name of the rehab game, but did it have to be so poorly done? I had watched my broker do some awesome rehabs. He would modernize the house while keeping original features. Buyers in turn would get the best of both worlds.

So, I dared to pose this question, "Could I find a rehabbing client that would work with me on preservation?" It could prove to be rather difficult to find someone that would see the value in trying to rehab this way. After all, saving historic features while modernizing isn't always the most economical route to go. It would take an investor that was willing to take a smaller profit margin at times in order to do things right. Do things right, and you could create demand for your product. Create a demand for your product and you can sell faster while pricing your properties on the higher end.

My thoughts were...

1. Find a good rehab project in a neighborhood that was anchored by local businesses and other walkable attractions. Sure, you are going to pay a little bit more for this project due to location, but selling the property would be much easier (faster) on the "flip" side.

2. Help out the surrounding neighbors by buying up a potential "problem property" that was affecting the values of the homes around it.

3. Spend a little more money on higher quality finishes and work.

4. Modernize while keeping as much historical finishes as possible.

5. Recycle, reduce and reuse whenever possible.

Well, guess what?  Apparently, the Universe does provide when you are truly ready for something. I stumbled into a client that would work with me on these things (or we stumbled into each other). So, I figured I would share with you all a lot about the process as we go along. I am having a blast working on these projects. It never ceases to amaze me what we uncover good and bad on a daily basis. I thought some of it was worth sharing and that others would find it just as interesting I do. Besides, I am very proud of this investor and want to share his work with people!