So What Can I Do With This Property, Anyway?

I am NOT going into this place!

Okay, there's this restaurant around the corner from where I live.  It used to be a pizza hangout.  Then, it was a steakhouse.  Then, it was a Greek place.  Then it was a laundromat.  Then it was a burger joint.  Then it was a tattoo parlor.  Now, it's a frozen yogurt cafe, but the rumor is that it's being sold to a guy who wants to open a transmission shop.  Locals say the place is under a curse, and I agree...  The curse of clueless owners!

So let's say you've just inherited a piece of real estate from your great-aunt Wilma Wigglesworth, and you're looking to turn it into an investment property.  What can you do with it?  What SHOULD you do with it? First, keep this in mind.  It's an investment property, which means it's supposed to make money for you.  (What a concept, I know.  Go figure.)  This is not the time to open that tofu-and-bacon ice cream stand that your college buddies dreamed up after too many kegs of beer one night.  So if that "next big thing" isn't the answer, what do you do?

You can put it here, here...  but not here.
Not ever!

First of all, hire a professional to do the research for you.  Have someone determine what the zoning is for your property.  Is it residential, multi-family, or some degree of commercial?  Just because some properties are developed in a certain way doesn't mean that things haven't changed for new developments.  Zoning can change drastically over time, so always check.

Next, have a professional (such as a commercial real estate broker) do a neighborhood evaluation.  There are actually brokers who specialize in this!  They can determine what sort of business best meets the needs of the neighborhood demographic, whether it be an ethnic restaurant, laundromat, or professional offices.  Building the right kind of business for the area can go a long way toward breaking those "curses" we hear about.

I was only going to build a daycare...

Once you've decided on a project type, have your design professional further check the zoning.  Find out things like setbacks, parking requirements, building heights, number of units allowed, etc.  Every zoning area is different.  You might think you can only build 4 condos on a piece of property, but with creative design and working with the Building Department, you might be able to build 10!  I recently had a client who was told he could build 3 condos on his property.  Turns out, if he bought the identical size adjacent property and combined them, he could build not just 6 (3 doubled,) but 11 units!  Again, it pays to do your homework.

So don't be afraid to use that property, but put your personal desires aside and focus on what is going to be the best investment.  Great-aunt Wilma would be proud...

Flipping Houses: "Don't Try This At Home"

There's a right way, and there's a wrong way...

Last week at our monthly family dinner gathering, my cousin Randy announced that he was pursuing a new career.  Since the real estate market seems to be picking up steam and mortgage rates are still relatively low, Randy has decided that he would enter into the business of "flipping houses."  My other cousin Harry wondered out loud if this was anything like tipping cows, and soon spoons of mashed potatoes were flying across the room.

Truth is, there is money to be made in the process of flipping houses, if it's done the right way.  An old, run-down structure can be bought for a low price, and changes can be made that can increase the value before it's sold again.  The trouble is, many house flippers either don't do it the right way, or don't take advantage of some techniques that can maximize their profits.  Many investors simply slap a new coat of paint and replace a few doors and windows, thinking they will double the selling price of the house.  It still has the tiny bathrooms, poorly planned kitchen, and narrow, maze-like hallways.

Sure, this meets code...

Sometimes, the problems can be worse.  Many municipalities may require that the structure be brought completely up to code in some instances, which means that entire electrical, plumbing, and HVAC systems need to be evaluated.  Even with that new coat of paint, the house might not pass inspection for a mortgage appraisal.  That's the seamy underbelly of house-flipping that they don't necessarily show on HGTV, and why amateurs often think they can do it themselves.

Even if the house can pass the building code requirements (which can vary wildly from city to city,) many house-flippers are still missing the mark. They are passing up a golden opportunity to maximize their investment.  Remember those bathrooms, hallways, and kitchens we mentioned earlier?  Hiring a professional designer to re-plan the spaces can take those 1930's kitchens and baths and turn them into something a 21st century homebuyer is looking for.

Definitely NOT your parents' bathroom!

You'd be surprised how much difference a little pre-planning can make.  The extra money you spend in reconfiguring the spaces, especially with an American populace that is getting older, can reap huge benefits over a house that has had only minor repairs and repainting.  Accessible, hi-tech homes with modern kitchens and bathrooms will bring in the serious buyers, and a professional designer can make that happen.  Even with that World War II Era bungalow (believe it or not!)

The ADA: "An American Horror Story"

Not to be confused with the
"Americal Dental Association."

The Americans With Disabilities Act:  A phrase that can send grown architects screaming and make contractors cry like babies. Love it or hate it, understand it or not, it is the law and it's not going anywhere.  (Kinda like Obamacare...)  What exactly is it, and more importantly, what does it mean to you?  The ADA, I mean, not Obamacare.  There's not enough space in this blog for that discussion...

In a nutshell, the ADA (and the various state guidelines derived from it) shows us how to make projects accessible to people not just in wheelchairs, but with visual, auditory, and walking difficulty as well.  The guidelines apply to public projects, private establishments open to the public, and some multi-family developments (your mileage may vary.)

Yes, Harry's the life
of the party.

Most of us don't understand how difficult life would be if we were confined to a wheelchair or suddenly rendered blind or deaf.  In fact, my cousin Harry firmly believes that all disabled people be shipped off to their own city, like in "Escape From New York."  My cousin Harry is an idiot.  In newly designed projects, accessibility can be readily achieved by a good designer, in many cases with the general public not even aware that "special provisions" have been made. Things like larger restrooms, well-designed water fountains, decorative ramp features, wider hallways, and other elements can actually enhance the look, feel, and usability of a project, even for those without these disabilities. Take THAT, Harry!

But what about older buildings?  Here's where I scare you to death.
Danger, Will Robinson!  Danger, Will Robinson!  Most owners of older buildings built before the ADA was introduced think their properties are "grandfathered" in.  They think that as long as they don't make any modifications to the building, they're good.  They're wrong.  Not as wrong as my cousin Harry, but wrong nonetheless.  Since it has been over 20 years since the ADA debuted, building owners are required to make changes that are "readily achievable."  If you don't, you can be sued.  Yes, SUED, even if no one is injured or no handicapped person has been denied service.  In most states, you can be sued just to force you to comply, but in some states such as California (no surprise there) you can be sued for thousands of dollars!  This is why my cousin Harry will never move to California.  He's content to sit at home watching reruns of Archie Bunker....

Harry thinks this means
"Reserved For People
With Big Butts."

So what does "readily achievable" mean?  Thankfully, it doesn't necessarily mean tearing out every wall and installing mile-long ramps everywhere.  Based on the size of your business and your budget, your local building authority might demand simpler things such as changing door handles, lowering some counters, installing grab bars in the bathrooms, taping down rugs and mats, or maybe building a short ramp that doesn't necessarily meet full ADA requirements.  If you, as a business owner, can show that you've made these types of corrections in your older building, you might just avoid that nuisance lawsuit that bleeds you dry and makes your lawyer friend from Rotary Club richer.

So as a small business owner, what do you do?  Find a local architect or a professional who is CASp (Certified Access Specialist) accredited, and have them do an evaluation of your property.  Complete those items that are readily achievable, and be ready to complete more items should you ever decide to do a major expansion or renovation to your property. And for goodness sake, don't invite my cousin Harry over for dinner...

A Funny Story (No, Really!)

How many small architecture firms ever get to have their work featured on a national television show?  Well, add one more to the list...  This guy!!  (You can't see it, but I'm pointing both thumbs at myself.)  We're not talking some show on HGTV that comes on in your dentist's office either.  We're talking...  wait for it...  wait for it...  Modern Family!  Yes, that's right, the show that features the typical family, the gay family, and the oh-so-lucky "old guy with bombshell Latino babe for a wife" family!

Run, Sophia, Run...

Perhaps I am stretching the truth a little here.  While Ed O'Neil's character could certainly be classified as "oh-so-lucky," my work wasn't exactly "featured."  It was in the show, however.  Last season, there was an episode where the families went to the local skating rink (as modern families are prone to do.)  The episode was filmed at a Glendale skating rink where we had recently done some handicapped accessibility renovations.  The exterior shots clearly show the stairs and handicapped ramp that I designed for the facility. Using our DVR, we counted 237 frames' worth of screen time!  Send word back to the hometown; your boy's a star!  Let the residual checks commence...

Although it certainly won't skyrocket my firm to the pages of "Architect" magazine, it certainly was entertaining to see something of mine on a national television show.  Sorta like when my crazy cousin Randy had us all watch that episode of The Walking Dead he "starred" in.  Turns out, he was Zombie #43, at the bottom of the pile of dead zombies that Darryl killed with one crossbow shot.  He was paid a whopping $20.00 for the episode, and proceeded to take the money and "go pop some tags," whatever that means...

Does anyone have a similar story where their home or business was used in a film or TV show?  We'd love to hear from you!