Get a competitive edge on new builds and refurbishments
In one of the country’s most popular real estate markets, Tampa, Florida, my wife Gloria Clother and I started Glow Architects. With her experience as an award-winning architect who has been in the industry since 2004 and has a wide range of experience with a variety of design styles, we were ready to discover a new investment corner in our community. But we’ve heard it over and over again: “The market is competitive, there are few deals and profits are shrinking. As investors, how can we continue to compete? “I didn’t realize it at the time, but marrying an architect turned out to be the perfect combination of skills for my real estate investment business.
With experience in business and working for a brokerage company with over 50 agents, a real estate management company that assists investors with detached or multi-family homes, and a Reg D 506b real estate investment fund, I have built a solid network of investors. Demand for new construction in residential space is skyrocketing as investors find the renovation and renovation market flooded with those targeting the typical single-family option. We’ve noticed a shift in that savvy, well-capitalized investors are targeting new builds to keep money flowing. Whether it is about building plots or demolishing an existing structure for restoration, we see this strategy as a viable option. Not only are there fewer investors doing this, but as housing continues to shrink through the secondary market and local builders, the private investor can make a solid profit if the strategy is implemented correctly.
We are also seeing a shift in institutional investors looking for new builds to buy and rent – a model not usually seen at scale before. There are also not enough people who want to bring this product to market and we were able to offer services to investors using an architecture license that my wife has to take in action.
There is also a large volume of renovation and reversal activity, so as a design firm we are always looking for new ways to have more functional layouts with well thought out designs to help investors create buzz around refurbished properties entering the market, not just branding an individual investor. but with an offer of high-quality repairs in demand, focused on likely demographics. This could also include replacing a two-bedroom, one-bathroom home with a three-bedroom, two-bathroom home, either through re-planning or additions, often finding value where other investors are only considering a typical refurbishment of the current installation.
These same design skills can be applied to multi-unit spaces, whether it be changing the exterior façade of a building or changing amenities to compete with neighboring properties. The mindset at the heart of our design process as an investor plays a large role in how we bring a new style of architecture and interior design to those we work with. For example, we had discussions with a developer who has permission to build 28 units nearby, consisting of squares and duplexes. They contacted me about the management of the property after it was built, but when I looked through the plans of their current architecture firm, I was able to understand how apartment layouts could be more functional and advised them on the right mix of bedrooms and bathrooms and property methods. could be more like a community.
Investors must strive for the skills of architects because of the license required to implement certain strategies, and their education is very different from that of engineers, contractors, and other consultants. Although not all architects understand design intent, interior design and the importance of investor strategy, so check with local investor circles to see if any investors are currently working with the architect. With a variety of asset classes and skills, make sure the architect you choose has experience with the type of projects you intend to undertake.
When it comes to architects and interior designers, finding the right team of professionals can help investors make smarter decisions, reduce construction costs, create the best end-user product, and avoid delays. If the property is better designed it means a faster resale if it is fixed and reversed. If properly set up, a business unit will rent out faster, reducing the turnaround process and increasing the likelihood of lease renewals, which improves cash flow over time.
Jeremy Clother, a Marine Corps veteran turned broker, grew up in the Tampa Bay area. Jeremy is the co-founder of Glow Architects, an award-winning design firm. His other business ventures include co-founding a real estate investment fund (506B, Reg. D), a real estate brokerage and real estate management company.