 |
 |
 |
 |
 |
 |
 |
 |
Special Inspections
Investing or Flipping Properties, An Architect’s Perspective
Investing
in
properties to flip or to hold for the
long-haul typically involves construction repairs, modifications or a
total
makeover. No matter the scope, the goal of any alteration is to enhance
the property and maintain the value of the
investment. Before you purchase a property, be sure to factor the cost
of any
proposed work into the asking price. A professional architect can
package the
improvements into a complete and seamless whole—resolving maintenance
problems,
bringing construction deficiencies to code, and altering building
aesthetics to
increase the value of the property.
First,
engage
an architect to evaluate the property
before it is acquired, as well as after close of escrow. An architect
can provide
a broad view of the work that will be required, stepping in where home
inspection or other services leave off. Home inspectors only provide a
narrow
scope of work and are not regulated by government. A licensed
architect, on the
other hand, goes beyond common inspection protocols, covering details
of
desired changes and the feasibility of making them. If it is not
feasible to
make the changes needed to make the property suitable for your
needs—say for
structural or regulatory reasons—an architect is in the best position
to know
that before you’ve closed the deal.
If you’re buying to flip, one option is to rent the property from the existing owner as a short-term lease, to prevent it from being sold while the major design work is being done. Do not assume your design and permit-ready drawings will be completed in a matter of weeks, as the permitting process alone may take months before actual construction can begin. Also, stay away from turnkey contrators. An architect can better serve you by shopping the open market of competitive contractors. See “More Contract Info”.
Don’t
presume
anything about the permitting process in
establishing a construction timetable. Each city and county has
different
zoning ordinances, and determining jurisdiction in some cases can be
tricky.
Local codes have been known to change monthly, so wait until you secure
approved drawings before firming up construction intentions. Also, city
agencies
are reluctant to respond to ad hoc questions from a prospective
purchaser.
However, an architect can set up a pre-evaluation meeting with the
local
planning department for a quick, over-the-counter concept review with
rough
graphics and a checklist. This informal preliminary submittal reduces
the odds
of unhappy surprises before you have finalized escrow or completed
engineered
drawings. Have the buying agent place an “Architect’s Review Pending”
contingency
in escrow documents before closing to further protect you from being
stuck with
a property not suited to your purposes.
Building code revisions can complicate the process.
Regardless of the
scope of the total project, any building elements that are altered,
modified or
expanded require permits--no exceptions. Avoiding the permit process
not only
exposes you to liability risk, it may delay or even stop escrow when
you sell.
On the buyer’s end, an architect’s forensic efforts will track the
entire
permit history of construction activity and compare the current
property to
original city records. With further investigation, an architect can
obtain
maintenance receipts from past construction trade activities, including
warranties to determine the remaining life span of improvements,
perhaps revealing
deficiencies of construction not visible to the naked eye and ordering
selective
demolition to bring the structure up to code.
A
forensic audit is an inexpensive way to ascertain the
actual condition of the property. Hire an architect for a simple
walk-through
or for more extensive services to further assess design opportunities.
You can
continue using an architect with broad scope services to compare
multiple properties,
determining which is most feasible for your purposes, narrowing the
site
selection process, as well as providing a forecast of the longevity of
existing
material and equipment, cost of retrofits and modernization, green technology conversions, or
simply to provide common building
inspection services. The goal is protecting your investment while
controlling
the total project cost, a small price to reduce risk to all investors. More info on this topic
Contact: John Salat at freeingwinds@earthlink.net or call (949) 235-4847