To clarify I was pointing to the fact that its the Marketplace that controls the value not necessaily the extent of how much you spend on your renovation. Ie all things being equal ie a duplex building where somebody spends an extra 30K on finishing material etc. I am pretty sure they won't get that 30k out, certainly some extra value but not to the full extent. By living in the home overtime that value gets imbeded in the increased value of the home and you see a better return ( some in equity and some in the improved quality of product)
To clarify I was pointing to the fact that its the Marketplace that controls the value not necessaily the extent of how much you spend on your renovation. Ie all things being equal ie a duplex building where somebody spends an extra 30K on finishing material etc. I am pretty sure they won't get that 30k out, certainly some extra value but not to the full extent. By living in the home overtime that value gets imbeded in the increased value of the home and you see a better return ( some in equity and some in the improved quality of product)
The funny thing is... You'd be surprised how far having a professional real estate spinperson clean up and rearrange furniture can go... just moving some furniture around, fixing up minimal little things like repainting, wallpapering, and "cleaning up" and strategically moving the furniture around to make it appear more spacious and sell certain uses for the space, cleaning up the yard, and baking apple pie in the oven while people are seeing the house goes miles towards selling a house...
The expensive renno's that architects want to invest in their own homes are not really about resale value added, if you really wanted to focus on selling it, you would be better off taking a different approach to renoavtion... It would be about bang for the buck, not getting our architectural fix...
Personally, I wouldn't live in a home unless I wanted to live there and make it mine... If I wanted to make money off a property, it would be a different game... Choose on location, choose the bargain property where the investment has the most horsepower, and watching market movement... The place I want to live is not necessarily the place that the average joe wants to live...
bRink - on the other side when I was house hunting we stepped into a house where the current owner and his group of biker gang friends were sitting in the basement chain smoking. The house was nice with lots of potential but dirty and reeking of smoke. We didn't give it a second thought. A couple weeks later he dropped his asking price by $20K and eventually it sold about $50k off from original asking.
Sadly presentation sells more homes than actual design or construction quality. I do agree with Whistler though. Throwing in a viking range or new Sub Zero isn't going to get you another $50k in sale price...maybe $10k if lucky.
I went to one open house filled with the smell of brownies baking and it made everyone ill - the owner was selling without a realtor and was clearly trying too hard. My understanding is that the house shouldn't seem too "lived in" because people want to be able to imagin themselves living in it and to personalize it themselves. So no baking, no personal photographs, no shoes artfully placed in the mudroom cubbies.
A slight smell of fresh paint on the other hand never seems to hurt.
treekiller - what neighborhood was that in? Lake Calhoun/Hariett? Isles/Kenwood? There's a late 19th century stone castle for sale just off Franklin, top of the hill, with something like 8 bedrooms, 5 baths, 10 fireplaces and carriage house for only $4 mil.
oh, a. is that just west of nicollet at about 15th? i used to know a cool house like that in the area. (i lived at 25th and nicollet, whittier neighborhood, at the time.) always loved a few of the places scattered around there.
You remember your neighborhoods well. It's on LaSalle just one block north of Franklin. The place was entirely renovated in the mid-90's. I assume you were possibly around for some of that. This is probably the best restoration job in the Loring heights neighborhood. It was a B&B for a while. Not sure what's happening there now since it's listed on MLS.
10. Cultivate a circle of friends with similar interests, goals and ambitions. It will increase your rate of success.
9. Never take financial advice from someone who doesn’t make more money than you.
8. Need money? Two words: Private Investors.
7. Never hire a general contractor without an iron-clad contract - in your favor.
6. Make friends with lawyers. Bankruptcy lawyers, divorce lawyers and litigation lawyers all have clients who have two things: Properties and Problems. If you can solve the problem, you can make a deal on the property.
5. Have a deal that you don’t know how to do? Call me.
4. There are rules to follow and rules to make, know the difference.
3. The internet is a phenomenal tool for buying and selling real estate. Learn how to use it to make money without leaving your home or office.
2. There are two sides to the real estate game: Business and Investment. You need to understand the business before you can succeed in your investments.
1. Be a Student of the Game, then a Master of Your Craft.
SAM'S FLIP TIPS
10. Stop being a seminar junkie.
9. Ugly, dirty, smelly properties = great opportunity.
8. Fall in love with the numbers first, property second.
7. The G.O.Y.A. (Get off your Assets) Principle = Success
6. BANKS LOVE PEOPLE WITH GREAT CREDIT - PAY YOUR BILLS!!!
5. Fall in love with your local home improvement center. The folks who work there are your most valuable resource have an investment, and you won't believe how cheap those materials really are.
4. Spend most of your money on kitchens, bathrooms, paint, and landscaping. Trust me.
3. Build a team. A great team (an agent, lender, appraiser, attorney, etc) that understands investing will make a novice investor look like a pro.
2. Become an expert on your local market. Too many investors miss the fortune that is in their back yard. You can make a ton of money without leaving your city.
OK Armando's #7 just pisses me off: why does the contract with a General Contractor or ANY contact with ANYONE need to be "in your favor"?!? Why can't it and every other legal relationship be a FAIR relationship in which both parties have rights and responsibilities?
Fcuk lawyers. And any lawyer that drives an H2, fcuk all the more.
there, there, LB. no need to spit you coffee all over this thread. yes lawyers suck, and hummers do too. but it is too early in the day to be vitriolic.
I still have no idea who Sam is...however, I do like Sam's #1 quite a bit. I'm into this stuff a little bit, and all I hear are everyone's really awesome "secret tips" on what I should do....advice which all turns out to be worthless.
non architects... people who actually know how to make money off real estate
armondo and sam are professional "house flippers", in san antonio and atlanta... you can read their bios... click on that link and then follow to "flip teams"
My favorite is Armondo #5: 5. Have a deal that you don’t know how to do? Call me. hillarious
Wow ! That article mentions that one of every 30 homes in Las Vegas began the process toward foreclosure last year. Damn, that is astonishing and scary!
Regardless, I still support buying over renting and I regret not purchasing earlier in life. Investing in your future and building equity beats throwing your money out the window to some landlord. On a positive note, I purchased a home three years ago and the value of my home increased 70K which is a better return than investing in a high risk stock market:)
Another good point for architects for purchasing is geography, people always want to live in a good neighborhood. If your buying look for the worst home in the best neighborhood, chances are that it may be a good opportunity to buy the home for the a minumum ( compared to the adjacent properties ) and simply buy fixing it up and cleaning it up you'll increase the market value. Now its what I call a good lipsick approach but by being creative and wise with a reno there is a possiblity of making a resonable return, particularly if you can live in it and do a lot of work yourself. Its kind of the approach we have taken and its great experience for your career.
Japan has had over 15 years of declining real estate prices. Sometimes I wish that I hadn't bought a house and chose to rent. Know plenty of people that lived in Houston or Los Angeles in the 1980's that echo that.
i'm hoping for an earthquake to push LA housing prices even lower before I move back to cali. Been watching for the bubble to burst for a few years now. Missed my chance to buy ten years ago.
housing prices
To clarify I was pointing to the fact that its the Marketplace that controls the value not necessaily the extent of how much you spend on your renovation. Ie all things being equal ie a duplex building where somebody spends an extra 30K on finishing material etc. I am pretty sure they won't get that 30k out, certainly some extra value but not to the full extent. By living in the home overtime that value gets imbeded in the increased value of the home and you see a better return ( some in equity and some in the improved quality of product)
To clarify I was pointing to the fact that its the Marketplace that controls the value not necessaily the extent of how much you spend on your renovation. Ie all things being equal ie a duplex building where somebody spends an extra 30K on finishing material etc. I am pretty sure they won't get that 30k out, certainly some extra value but not to the full extent. By living in the home overtime that value gets imbeded in the increased value of the home and you see a better return ( some in equity and some in the improved quality of product)
The funny thing is... You'd be surprised how far having a professional real estate spinperson clean up and rearrange furniture can go... just moving some furniture around, fixing up minimal little things like repainting, wallpapering, and "cleaning up" and strategically moving the furniture around to make it appear more spacious and sell certain uses for the space, cleaning up the yard, and baking apple pie in the oven while people are seeing the house goes miles towards selling a house...
The expensive renno's that architects want to invest in their own homes are not really about resale value added, if you really wanted to focus on selling it, you would be better off taking a different approach to renoavtion... It would be about bang for the buck, not getting our architectural fix...
Personally, I wouldn't live in a home unless I wanted to live there and make it mine... If I wanted to make money off a property, it would be a different game... Choose on location, choose the bargain property where the investment has the most horsepower, and watching market movement... The place I want to live is not necessarily the place that the average joe wants to live...
bRink - on the other side when I was house hunting we stepped into a house where the current owner and his group of biker gang friends were sitting in the basement chain smoking. The house was nice with lots of potential but dirty and reeking of smoke. We didn't give it a second thought. A couple weeks later he dropped his asking price by $20K and eventually it sold about $50k off from original asking.
Sadly presentation sells more homes than actual design or construction quality. I do agree with Whistler though. Throwing in a viking range or new Sub Zero isn't going to get you another $50k in sale price...maybe $10k if lucky.
I went to one open house filled with the smell of brownies baking and it made everyone ill - the owner was selling without a realtor and was clearly trying too hard. My understanding is that the house shouldn't seem too "lived in" because people want to be able to imagin themselves living in it and to personalize it themselves. So no baking, no personal photographs, no shoes artfully placed in the mudroom cubbies.
A slight smell of fresh paint on the other hand never seems to hurt.
treekiller - what neighborhood was that in? Lake Calhoun/Hariett? Isles/Kenwood? There's a late 19th century stone castle for sale just off Franklin, top of the hill, with something like 8 bedrooms, 5 baths, 10 fireplaces and carriage house for only $4 mil.
tangletown - just north of minnehaha creek, east of lake harriet.
LB- the smell of low v.o.c. paint doesn't hurt, but off-gassing formaldehyde from carpets and oil based paint can kill the sale (and you).
oh, the houses within 2 blocks of lake harriet are $500k more for similar they start at $1.2m
This can be had for only $3.6 mil
A little vinyl siding and you're looking at a handsome flip.
oh, a. is that just west of nicollet at about 15th? i used to know a cool house like that in the area. (i lived at 25th and nicollet, whittier neighborhood, at the time.) always loved a few of the places scattered around there.
You remember your neighborhoods well. It's on LaSalle just one block north of Franklin. The place was entirely renovated in the mid-90's. I assume you were possibly around for some of that. This is probably the best restoration job in the Loring heights neighborhood. It was a B&B for a while. Not sure what's happening there now since it's listed on MLS.
maybe archinect.com can buy it for the midwestern HQ of our online community.
ARMANDO'S MILLIONAIRE INVESTOR TIPS
10. Cultivate a circle of friends with similar interests, goals and ambitions. It will increase your rate of success.
9. Never take financial advice from someone who doesn’t make more money than you.
8. Need money? Two words: Private Investors.
7. Never hire a general contractor without an iron-clad contract - in your favor.
6. Make friends with lawyers. Bankruptcy lawyers, divorce lawyers and litigation lawyers all have clients who have two things: Properties and Problems. If you can solve the problem, you can make a deal on the property.
5. Have a deal that you don’t know how to do? Call me.
4. There are rules to follow and rules to make, know the difference.
3. The internet is a phenomenal tool for buying and selling real estate. Learn how to use it to make money without leaving your home or office.
2. There are two sides to the real estate game: Business and Investment. You need to understand the business before you can succeed in your investments.
1. Be a Student of the Game, then a Master of Your Craft.
SAM'S FLIP TIPS
10. Stop being a seminar junkie.
9. Ugly, dirty, smelly properties = great opportunity.
8. Fall in love with the numbers first, property second.
7. The G.O.Y.A. (Get off your Assets) Principle = Success
6. BANKS LOVE PEOPLE WITH GREAT CREDIT - PAY YOUR BILLS!!!
5. Fall in love with your local home improvement center. The folks who work there are your most valuable resource have an investment, and you won't believe how cheap those materials really are.
4. Spend most of your money on kitchens, bathrooms, paint, and landscaping. Trust me.
3. Build a team. A great team (an agent, lender, appraiser, attorney, etc) that understands investing will make a novice investor look like a pro.
2. Become an expert on your local market. Too many investors miss the fortune that is in their back yard. You can make a ton of money without leaving your city.
1. THERE ARE NO SECRETS IN REAL ESTATE.
Who are Armando and Sam?
OK Armando's #7 just pisses me off: why does the contract with a General Contractor or ANY contact with ANYONE need to be "in your favor"?!? Why can't it and every other legal relationship be a FAIR relationship in which both parties have rights and responsibilities?
Fcuk lawyers. And any lawyer that drives an H2, fcuk all the more.
there, there, LB. no need to spit you coffee all over this thread. yes lawyers suck, and hummers do too. but it is too early in the day to be vitriolic.
BRYAN4ARCH'S BILLIONAIRE TIP:
stop listening to people who have nothing better to do with their time than making 10 item tip lists and posting them on the internet.
I still have no idea who Sam is...however, I do like Sam's #1 quite a bit. I'm into this stuff a little bit, and all I hear are everyone's really awesome "secret tips" on what I should do....advice which all turns out to be worthless.
crazy
Thanks tk. I like acid black coffee and you're right sometimes it comes back as extreme grumpiness.
non architects... people who actually know how to make money off real estate
armondo and sam are professional "house flippers", in san antonio and atlanta... you can read their bios... click on that link and then follow to "flip teams"
My favorite is Armondo #5: 5. Have a deal that you don’t know how to do? Call me. hillarious
ya but agreed, amusing but totally useless tips...
does anyone have something similar but an average construction cost / sf per city???
I think this would be helpful for architects designing project in various cities..
you American's should stop moaning. You can take those figures and just add a £ sign to the beginning and that's what you have here in the UK.
Check this - I can't get the link to work but it will cut and paste
http://news.viewlondon.co.uk/Prison_cell_flat_in_Chelsea_up_for_170,000_18039839.html
Housing market is crashing. I have to say it feels good to be a renter when I see articles like this:
Vegas ‘flipping’ boom ends up like most bets
Wow ! That article mentions that one of every 30 homes in Las Vegas began the process toward foreclosure last year. Damn, that is astonishing and scary!
Regardless, I still support buying over renting and I regret not purchasing earlier in life. Investing in your future and building equity beats throwing your money out the window to some landlord. On a positive note, I purchased a home three years ago and the value of my home increased 70K which is a better return than investing in a high risk stock market:)
^bump^
so how low will they go????
Another good point for architects for purchasing is geography, people always want to live in a good neighborhood. If your buying look for the worst home in the best neighborhood, chances are that it may be a good opportunity to buy the home for the a minumum ( compared to the adjacent properties ) and simply buy fixing it up and cleaning it up you'll increase the market value. Now its what I call a good lipsick approach but by being creative and wise with a reno there is a possiblity of making a resonable return, particularly if you can live in it and do a lot of work yourself. Its kind of the approach we have taken and its great experience for your career.
Japan has had over 15 years of declining real estate prices. Sometimes I wish that I hadn't bought a house and chose to rent. Know plenty of people that lived in Houston or Los Angeles in the 1980's that echo that.
not sure they have gone down here at all.
am I the only housing market watcher?
i'm hoping for an earthquake to push LA housing prices even lower before I move back to cali. Been watching for the bubble to burst for a few years now. Missed my chance to buy ten years ago.
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