It is almost summer, flowers are blooming, grass is growing, and the sun is shining, so maybe it's time to look at how your business is growing. If you are wondering how to jump start yours, or are trying to find a new niche to approach, maybe working with quality investors is for you.
When you find one serious investor to work with, you have a client who will buy and sell many properties annually. By helping your investor do this every year and bringing more value to your investors, other investors will sprout up wanting your services too. If you are a real estate agent looking to collaborate with a stager or a stager expanding your business, here are a few questions to consider asking the stager you are working with (or yourself if you are going it alone).
1. Do you have inventory for at least two homes a week?
2. Can you stage and de-stage within a forty-eight-hour window?
3. Do you have available help, as in assistants, movers, etc.?
4. Are you confident choosing paint color, flooring, and hardware?
5. Do you have a solid contract and do you have current, sufficient insurance coverage?
6. Do you have Errors and Omissions coverage?
If you said yes to all six of these questions, then roll your sleeves up and let's get this garden started.
OK, so you tilled the ground; now start to plant the seeds.
Stage 1 (Annuals):
They are looking for a great investment. They hear about all the real estate investors who made a bundle buying and selling houses, so they go out and buy the first run-down house they see. They are not prepared for all the work involved. It often takes months to complete and they usually go over budget. They are emotionally attached to the property. These are the people who will have an opinion about how you should stage and will hover over you like a hawk. Though they would not be my first recommendation to start with, some can be "easily trained" if they trust you.
Stage 2 (Perennials):
These investors are always looking for an investment edge. For them, it is all about being at the right place at the right time and taking a chance on a house as a means of making money. Their philosophy is, "If today's property doesn't work out, there will always be others." They normally have money/cash, or a great loan to buy the props. The challenge is that they don't always invest smart or they over indulge on things that they don't need to. No... you need not put a Thermador refrigerator in every property. They also can be emotional and controlling at times. They might complete three to five properties a year and the locations are all over the map. They may have a team, i.e., Realtor, investor, lender, and outside contractors. This is where real estate agents should look, and stagers... here is where you can refer to an agent you feel would work best with them.
Stage 3 (Evergreens):
These investors have money and experience. They generally choose a single investment area and become the expert of that area. They know they can make money in the chosen investment area during any market - hot, cold, or in-between. They know their investment area inside and out in terms of target market and pricing. They are less emotional and not controlling. They have a team of professionals including a stager and a real estate agent as well as a subcontractor team; the team members have been interviewed and their work has been seen firsthand. Instead of just buying and selling homes, they have a plan to make money for this year and the next with volume! This is where you want to be. For Realtors and stagers, you can bring your stage 2 clients to this point very quickly.
Investors can be a great group to work with. Do your research, find a team with integrity, market yourself efficiantly, and you will grow your business. Happy gardening!
** This article was featured in the May issue of Staging Standard Magazine 2010.
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Lori Kim Polk is owner of Premiere Home Staging, a full service Home Staging and Design Corporation and nationally recognized leader within the home staging industry located in Roseville, California. Lori Kim has a warehouse full of unique accessories and quality artwork to better serve their growing list of clients in the Sacramento areas. She has been featured in Staging Standard Magazine, Sacramento Magazine, Sacramento News and Review, KFBK radio and SMUD's Home of the Future. Proudly serving realtors, homeowners and investors in Granite Bay, Rocklin, Lincoln, Sacramento, and surrounding areas with exceptional home staging.
Lori Kim has helped stage and market hundreds of homes in the Sacramento, Roseville, and surrounding areas since 2005. Our stats say it all.....current DOM with our staging is 18 days. Call us today at 916-300-0402 for our premier services. "We are changing this market one home at a time!"
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Thanks Lori Kim.....I need some of those Evergreens.....very appropriate name for them too.
Thank you for stopping by Ann. If you can find one.. you will reap the fruits of harvest ;)
Hi Lori -- Evergreens would be our dream clients! I've worked with a few investors and it's so true, the best ones are seasoned and experienced and trust their "team" to do the job. Great post!
Maureen... the Evergreens are out there, they really are. You just need to find them my friend! Thank you.
I used to have more investors as clients but when obtaining financing became harder about 18 months ago some of them quit investing and it has really slowed down.
Even though financing has gotten better, so many are still too nervous to get back in the game. I am praying that changes soon.
The financing is definitely a differentiator Shar. It truly separates the big boys from the little boys. There are investors out there that have the money and can buy up with their own props. Keep your eyes WIDE open for any possibilities. Befriend all loan and title folks as they know who is out there ;)
So that is what my little princess was doing yesterday. Great blog Lori... now get back to work! Ta-Ta!
Thanks for a great post Lori. I listened to you speak on investors at the RESA Conference and enjoyed you presentation very much. I still consider myself a new stager and have really been specializing in occupied properties. I have been contacted by investors on occassion and have not committed because they seem to be annuals. However I am now taking serious consideration to expand and have a phone appointment with a fellow member of my local chapter that has recently gone this direction.
Thank you again and take care!
Leslie
Lori - Great post and I loved the analogies! I don't work with a lot investors on the mortgage side but around here (LA & Ventura counties), we have a lot of investors flipping properties in the low-end (300k<) of the market and these are typically the properties that my buyers are purchasing.
You can always tell the properties that were purchased by the newbie investor and those purchased by the experienced investor. I prefer to work with the experienced investor sellers - their properties just look better and are in better condition.
Ryan.. you are too funny! Yes, I was working while you were playing ;)
Leslie.. thank you for stopping by. I hope that you to consider working with them. Call me if you have questions.
Donna.. Hey it was basically your post that inspired me to post my article on AR. The investors are not going away and they will always be around. Experienced investors are great to work with. Thanks for stoppin' by.
Hi Lori -- It's important to recognize the difference between the wannabes versus the real deal. The latter can make everyone consistent ROI.
Lori,
Thanks for the post. Actually I did not have a great experience with one investor who hired me on a condo renovation. He wanted me to stage a model unit (one of three) and although my contract clearly stated that I was pd. in full once my staging was done, he evidently was counting in it selling right away and couldn't pay me. And of course he overpriced it so it didn't sell. I actually felt sort of bad for the Guy because he overextended (no doubt thinking that he was goingt to make a killing) and the market tanked. Eventually I got paid most of it and took the rest back in inventory after about a year. I now make it a policy to be pd. a deposit upfront that will cover my out of pocket expenses. I am also more diligent about protecting myself.
Marianne
Chris.. Thank you for stopping by. Words well spoken!
Marianne.. Glad that you are getting paid up front now. He sounded like an "annual" to me.
Loved references and analogies, well done. We could all use some evergreens these days! Good work.
LKP, can you explain to me the need for E & O insurance. Our finance guy just brought it up last week. Thanks.
Great way to describe investors. I think most of us would like some of those evergreens.
Ginger... great question. It is insurance that protects against malpractice or negligence. You can also put an indemnification clause in your contract.
Lane.. Glad you liked it! I had fun being creative with this recently, delicate subject.
Eric... Thank you, start looking for them big trees!
Great Post. I bookmerked it. I will call one invsetor tomorrow.
I've been looking forward to this post Lori Kim. Thanks for sharing your experience of working with investors. It is a great group to work with once you establish trust.
Lori Kim, what a great analogy post this is! Definitely want some of those evergreens, although I have found perennial this year who could grow into an evergreen in time. :)
Grea post-it just take some good mulch to get things growing.....
Excellent post Lori and wonderful ideas for growing your business.............points well taken.
I am looking to cultivate some evergreens here in Florida. They are hard to find though between all the annuals running around down here. Good post.
Lori Kim, I know what it is, but wonder why we would need it? Can you give some examples. Thanks.
Lori - good timing on this post!
I have definitely profited from working with an investor for the past year and a half. He is definitely still a perennial though and doesn't always see the wisdom of loyalty to contractors or making the right budget choices. BUT... it is easier growing your staging or design business when you have a few clients who are consistently turning over properties!
Nice photos and play on words there!
What a creative way to put this! Great post! We have been fortunate to have worked with many "perennials," it is fun to be a part of the whole process, beginning with tear down. Now I know to keep my eyes and ears open for opportunities with "evergreens" :o)
Julie
Thank you everyone for your comments and, of course to our wonderful rain gods for the feature. I really hope that realtors, stagers, and anyone involved with real estate, consider the investment/investor market. There really are quality investors out there who know what they are doing. Some of them do not have a realtor and it has been an honor to refer. Just do your research and qualify the investor to your standards. It can be a beautiful win-win for all!
Hello LKP!! Nice post! :) It takes some time to find ones who are serious investors and careful consideration is a must! Congrats on the feature and keep rockin' those investors worlds my friend!!
Hi Lori - We've got a couple of "Evergreens" that keep us hopping and we love making their homes beautiful. They make great clients and love that their homes sell quickly. They totally understand pricing, presentation and marketing!
Kathleen... Happy Birthday my wonderful friend! We love our investors, they truly want to change the market and prepare lovely homes for buyers.
Margaret,,,, Dontcha just love it! They are the ones who consider YOU as their ticket to multiple offers and quick sales. They DO understand what it takes and I hope that you continue working with this wonderful group!