FROM OVERGROWN TO OCCUPIED!

The new homeowners are moving into the Ivy Cottage this week! We took a short, freezing cold trip to Montana in early February to celebrate both my birthday and the closing of this property. I suppose we should also add the Eagle’s Super Bowl WIN (but that came after..)— either way, a celebratory month!

The Closing Journey

When offers above asking price came across the table within the first few days of listing the Ivy Cottage in January it was a bout of excitement and immediate relief. Not only did it validate that I, as the analyst, project manager and designer of the project, did a few things right along the way, but that others truly want to make it their home!  

A few of the offer process and closing journey details:

Don’t Over-Design!

I wrestled with the design of this project even more than the last. Not because it was tricky or difficult, but because of the very strict boundaries the neighborhood comps set.

In the end, the interior design is uncomplicated— a layout that makes sense, a kitchen that is small, but highly functional and a new third bedroom— I didn’t overthink it. I love the textures of bathroom vanity piece and the brass finishes throughout, but I’m most proud of how the exterior paint colors turned out! Plus, the new back patio and fence gave the backyard a major facelift and are ready for string lights to be hung and summer night fires! 

Reflecting back on the process, there were three components that allowed this project to be more profitable, albeit arguably less rewarding than the last. 

• Emotional Detachment | By not participating in any of the remodel myself, I was less emotionally attached to the Ivy Cottage. I was able to view and treat the remodel mostly as a business transaction and a building block to the next thing.

• Know the Market | The best thing you can know before starting a flip is the market which you’re investing in. In this case, the neighborhood was considered the upper end of Class C, but transitioning into Class B as the Tacoma area becomes more and more desirable. 

• Not Over-Designing | Don’t fight the fact that you’re in a Class B/C neighborhood. Just don’t design a house that would be better in a Class A hood. This is the part I grappled with! It’s tempting to choose higher-end, better finishes, create unique details that make the home feel extra special. However, that isn’t what the neighborhood demands, which makes those extra special finishes not worth their value.

Investor Rewards!

My business continues to grow, and so do my investor earnings! Each private investment loan has allowed each renovation and resale to be a success, but another focus has always been to provide value to the investors by offering them fixed rates of return from an industry with tangible assets and minimal risk. While we are out working to find the most unloved home in the neighborhood, revitalize it, and put it back to use in the community, our investors are earning passive income.

This project involved a total of $60,000 in private investments with interest earnings of ~$2,000 over the course of the short 3-month project. Those investors continue to re-invest in the upcoming projects to maximize their returns.

Let your money work for you! I continue to seek new private money lenders to allow Refern to scale and pave a path towards acquiring a boutique hotel in the coming years. 

*If you are a real estate investor considering using private money lending, always consult a CPA and attorney for rules and regulations regarding private investing in your state.

See you for the next one,

refern (aka Rachel)