Flipping Confidential E-Book

Kirsten Kemp

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 272

Veröffentlichungsjahr: 2011

Beschreibung

Master the art of flipping with KIRSTEN KEMP, host of the hit TV show Property Ladder! "This book establishes a new standard for real estate authors. Kemp gives her readers delightfully written prose packed with her wealth of experiences. She lays out so many profit-generating (and loss-avoiding) ideas that while reading the manuscript my highlighter never got a rest." --Gary Eldred, Trump University Professor of Real Estate, coauthor of the bestseller Investing in Real Estate Real estate isn't just for the rich! And this book proves it. In Flipping Confidential, Kirsten Kemp, the host of TLC's runaway hit show, Property Ladder, gives first-time investors the guidance and inside tips to buy cheap, fix fast, and sell high. With a positive attitude and a healthy dose of humor, Kirsten Kemp walks you through every step of a successful flip--from finding the right house to getting your financing in order, from making big improvements to pricing the home to sell. If you've ever seen Property Ladder, you know that successfully fixing and flipping a property can be a deeply rewarding experience--both personally and financially--when you do it right. Kemp makes sure you do it right in Flipping Confidential, revealing all the inside knowledge she has amassed as a successful flipper. You'll learn how Kemp became a successful flipper and much more, including how to: * Get started with little savings or free time * Find great leads and follow up on them * Clean up your credit and find financing * Sign up a great agent, lender, or contractor * Learn when you can do it yourself, and when to hire a pro * Keep costs down during renovations * Set schedules and plan for costs and fees * Master home staging for higher profits * Manage mistakes before they become disasters Real estate is the key to your financial freedom, and flipping is the fastest way to unlock that door. If you want to get out of the office, be your own boss, spend more time with your family, and make a truckload of money in the process, this is the ultimate guide to your new life. The key to financial success isn't a secret, it's Flipping Confidential.

Leseprobe

Table of Contents

Title Page

Copyright Page

Dedication

Acknowledgments

Chapter 1 - INTRODUCTION

Chapter 2 - MY STORY

Starting Out as an Actress

Unleashing My Inner Designer

Becoming a Flipper

Chapter 3 - GETTING STARTED

Finding the Money to Buy Your First Flip

Establish Your Credit

Clean Up Your Act

Team Up or Go Solo?

Picking Your Property

Location, Location, Location

Won’t You Be My Neighbor?

Getting a Deal

You’ve Got a Lead, Now What

Chapter 4 - ASSEMBLING YOUR TEAM

Your Agent

Your Lender

Your Contractor

Chapter 5 - BUILDING A BUDGET

The Basic Costs

Your Down Payment

Inspections and Appraisals

Closing Costs

Carrying Costs

Renovations

Establishing Your Renovation Budget

Staging

Real Estate Agent Fees

Pest Inspection

Capital Gains Tax

Chapter 6 - CREATING A TIME LINE

Create a Time Line

Chapter 7 - IMPROVING THE PROPERTY

Don’t Overpersonalize

High Impact, Low Cost

Where to Stop!

Recognize Your Flip House

Dig for Gold

Curb Appeal

Tips for Improving Your Home’s Exterior

Tips for Profitable Improvements

Chapter 8 - STAGING YOUR FLIP

Deciding What to Put Where

Your Local Bookstore Will Be Full of Ideas

Where Did You Get That Furniture?

Accessorize, Accessorize, Accessorize

To Have or Have Not—The Appliance Question

First Impressions Matter

Chapter 9 - FLIP-FLOPS

A Flood

Mental Meltdown

The Ex-Con

Living in Squalor

Historical Shocker

Chapter 10 - ADJUSTING YOUR MIND-SET

Buying the House

Fixing the House

Selling the House

Chapter 11 - FREQUENTLY ASKED QUESTIONS

How Do I Get Started?

Do I Need Any Special License or Skills to Flip Houses?

How Will I Know How Much Money I Can Make on a Flip?

If The Market Seems to Be Changing. Is Now Still a Good Time to Flip Houses?

How Can I Avoid a Multiple-Offer Situation When I Go to Purchase My Flip?

What Does “Creative Financing” Mean?

What Are My Options If I Run Out of Money?

What Are My Options If My Flip Doesn’t Sell Immediately?

I Don’t Have a Lot of Money. Should I Flip a House with a Partner?

Is There Any Way to Avoid the Tax Ramifications of Making Money on a Flip?

Do You Have Any Tips for Staying Organized?

How Can I Keep My Team on Their Toes?

Are There Any Concerns That Apply Specifically to Condos?

I’m Running out of Time and Money. Can I Schedule an Open House Even Though ...

How Do You Know When to Splurge and When to Do the Minimum?

I Went Hog Wild with My Renovations and Plan to Price My House Accordingly. I ...

Do I Need to Get Permits for All the Work I’m Going to Do?

What Are the Critical Elements in a Finished Flip?

What Is the Key to Creating a Realistic Time Line?

Do I Really Need to Stage My Flip?

Real Estate Commissions Are So High—Can I Just Do It Myself and Save the Money?

So ... Should I Do This or Not?

Why Would You Write a Book on Flipping If You’re a Flipper? Aren’t You Afraid ...

Flipbonics

Photos of Flips

Index

Copyright © 2007 by Kirsten Kemp. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

Wiley Bicentennial Logo: Richard J. Pacifico

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at [phone], outside the United States at [phone] or fax [phone].

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com.

Library of Congress Cataloging-in-Publication Data:

Kemp, Kirsten.

Flipping confidential : the secrets of renovating property for profit in any market / Kirsten Kemp.

p. cm.

ISBN 978-0-470-06835-9 (pbk.)

1. Flipping (Real estate investment) 2. House selling. 3.

Dwellings—Maintenance and repair. I. Title.

HD1382.5.K46 2007

332.63’243—dc22

2007000436

To Dad who started me on this flipping journey and Mom, Walker, Nola, and EO with whom I still get to share it.

Acknowledgments

Mom, I admire your iron gut and will always be grateful for your endless support. Dad, your spirit comforts me with its quiet strength. I miss you. Thank you, Clem Blake for your unwavering goodness and witty flipitisms; my dear and talented friend Jenna Mc-Carthy, without whom this book would not have been written; and Matt McAllister for introducing me to Jenna and allowing me to shamelessly plug my various antics on your radio show. Kathy Lymberopoulos for your loyalty and leadership; Diane DeMartino for telling me to write a book; Tracy Verna for making it possible; Laurie Harting for showing me the ropes; Brian Knappenberger for your keen eye; Kim Prince for anticipating my every need; and Elizabeth Ford for understanding the needs of another working mom. Thank you, Darrell Becker, for sharing your knowledge, attention to detail and for your guidance, Mary Belle Snow for giving me the confidence to jump in, Gina Brogi for your unwavering friendship, and Malek Doulat for your insight and smarts. To Renee Grubb and Ed Edick, who let me keep a desk at the office even when I’m not focused on selling a ton of real estate; Laina Mayfield-Condron for your informative loan contributions; Diana MacFarlane for your mortgage expertise; Jane Hilty for your escrow excellence; Pete Slaughter for your reliable legal jargon; Erin Chrislock for your negotiating talents, patience, and clarity. Greg Maher for crunching the numbers and keeping me accountable. To Tomas Ramirez for telling me not to worry, we can do it! and to Teresa Uribe because your unflappable work ethic and steadfastness inspire me and help me maintain my perspective. There are countless contractors, vendors, stores, subcontractors, clients, and friends who have supported me along this journey. You have all touched me and influenced this book in one way or another, and I thank you—Brianna, Erin, Khasy, Joy, Laura, Geof, Sandee, Gil, Valerie, Lisa, Nancy, Prem, Carter, Alberta, AJ, Richie, Gina, Janie, Jay, Karen, Pat, Jason, James, Gene, Kim, Joele, Kevin, Derek, Joey, Jorge, Jose Luis, Salvador, Efrain, Miguel, Juan, Jesus, Jerry, Erica, Forrest, Nate, Alicia, Brett, Lenci, Christy, Maddy, Scott, Christine, Geoff, Sandy, Steve, Max, Betsy, Al, Joe Coito, and Starbucks for keeping me awake long enough to finish this book but perhaps not alert enough to include everyone who deserves to be mentioned here. Finally, my heartfelt thanks to my family for making everything more worthwhile.

1

INTRODUCTION

Flip·i·tisn. Addiction to buying, fixing, and selling houses for profit.

No cocktail party conversation would be complete without the whispered mention of some mutual acquaintance who has just made a fortune buying and selling a house. When talk turns to profit, the numbers sound like Monopoly money to you: Are these people really making more money in 8 or 12 weeks than you make all year? You can’t help but fantasize—there you are, working for yourself (swinging a hammer like nobody’s business, I might add), creating extraordinary living spaces, and becoming wealthy beyond your wildest dreams in the process. What’s not to like about that particular scenario? But then you remember: You have no experience, no money, and no applicable skills.

I have some good news for you. There’s an art and a science to flipping houses, and it doesn’t take an engineering degree and a bottomless trust fund to do it. Several years ago, I had a real estate client, Lety, who purchased her first condo in Santa Barbara for $200,000, 110 percent of which was borrowed. Because she had no money whatsoever, she even had to borrow the cash to cover her closing costs. Lety was a single mom who desperately wanted to provide security for her young son. Although she didn’t have a penny to her name, she was employed full-time as a hairdresser and had a loyal, steady clientele. She possessed an inspirational resolve and an innate understanding that the key to financial independence was to invest in real estate even though, technically, she had nothing to invest.

Because Lety’s funds to get into her home didn’t come out of pocket, her mortgage payment was steep. Lety made many sacrifices to keep that condo, but she never complained because she had her eye on the prize: building equity and, hence, financial stability for her future, for her son. While she was living there, Lety made some minor cosmetic changes to her condo—replaced linoleum with tile, painted, and changed out some light fixtures and hardware. Two years later, she sold it for $298,000, a healthy profit in any market. She dropped $325,000 on her next condo, made similar improvements (and sacrifices to keep it), and sold it 18 months later for $435,000. With the equity she had acquired, Lety partnered with her sister and bought a house for $950,000, completely overhauled it, and sold it 16 months later for $1,175,000. They split their profits, and Lety purchased a single-family residence in need of her now well-honed special touch. There was a nice yard for her and her son, and she is now enjoying the comforts of well-deserved stability.

Think about this scenario. Here’s a single mom with no money and limited skills. Lety struggled to get into a $200,000 condo, and just five years later, she was dabbling in million-dollar deals. Did she set out to become a “flipper?” Probably not. Was it easy? No. Scary at times? No doubt. Worth the sacrifice? Absolutely.

Lety didn’t have experience or cash, but she did have what it takes to be a successful flipper: a principled conscience, an iron gut, a keen sense of organization, a passion for the process, a healthy dose of reality, and a finely honed sense of humor. That last bit is key. Take it from me—someone who’s lost (and made) more money in 12 years than some people see in a lifetime—because there is no better backdrop for raucous laughter than a construction site under a self-imposed time crunch. Of course, how long and how heartily you chuckle (and how quickly you recover) will depend on your mind-set, attitude, and perspective—all of which we’ll be sure to get in the right place before you begin your flipping journey.

Let’s say you meet the basic criteria: You’re a ballsy yet pragmatic control freak who’s interested in real estate and, on occasion, has brought the house down with a well-timed one-liner. But how can you really know if flipping houses is for you? First, you must determine what your goals are and, perhaps more important, what they aren’t. If you want to find a creative outlet and leave your stamp on the world of decorating, go to design school and enjoy making the world a more beautiful place, one grass-cloth covered wall at a time. If you dream of overhauling something unsightly—overnight—get yourself a nice garage sale umbrella stand and a can of spray paint and call it a day. If you want to have scads of money but don’t really want to work all that hard, find yourself a willing benefactor and spend your days watching football or popping bonbons.

But, if you want to be your own boss (not just finally tell the one you currently have where to go), you’re in the right place. If you want to spend more time on vacation and less time punching the clock, keep reading. If you’re looking for more time with your family and less hours behind a desk, don’t skip a word. If you want to be an efficient, professional leader of a team with a common goal, don’t put this book down. If you know without a doubt that you have fantabulous taste and want to test-drive your creative ideas on a house that you won’t necessarily want to call home (but would be willing to live in if push came to shove), get a high-lighter. If you want a sense of accomplishment unlike any other you’ve felt before, start taking notes. If you want to increase your wealth because of what it will make of you and do for you, and not just for money, get ready to sit down to a banquet of information.

Even if you’re a complete novice, don’t be daunted. Like anything worthwhile, flipping properties is hard work that happens to have untold side benefits. Beyond making you wealthy and wise, your new hobby will almost certainly teach you more about yourself than you ever thought you wanted to know.

Because here’s the thing: This flipping business is a journey, and the destination is probably not the one you had in mind when you first picked up this book. Just about everyone I’ve ever met who’s been desperate to get into this game has had dollar signs where pupils should be. I’d be flat-out lying if I told you I started turning houses for altogether altruistic reasons. I was raised by frugal parents who thought that brand-new clothing was a luxury and that coupons and toilet paper were winning Christmas gifts. We weren’t poor, but we didn’t spend much money either. If I received an expensive present or we went anywhere fancy, it was because my parents—particularly my dad—knew how to finagle a deal.

We traveled a lot when I was growing up—mostly performing as a family. My Dad a concert pianist, my Mom a singer with the voice of an angel, and I rounded out the trio with my singing, dancing, fluting, and guitar-playing so together we were sort of the scaled-down Von Trapps and I ached to have the glamorous things I saw in far-off places. I wanted to buy designer clothes and drive a luxurious car. But I also wanted the freedom that money could bring. I wanted the good life. I didn’t want to have to worry about mundane things like retirement accounts and mortgages. I wanted to feel secure. After my maiden stint in the first-class cabin of an airplane, scored by Dad simply walking up to the ticketing agent and “volunteering” to be bumped up, I vowed never again to fold my elongated frame into a miniscule coach seat. Little did I know these experiences were shaping my future.

Yes, money allows you to make even more money. And if that’s all you’re interested in, that’s fine; skip ahead to Chapter 7 to learn all about the mechanics of a flip, and repeat until you master the fine art of flipping. But I’ll let you in on a little secret: Whoever said that money can’t buy happiness never helped a penniless single mother purchase her first home and make more money in equity in just a few weeks than she had made in her entire lifetime. Whoever thinks poverty builds character (or affluence annihilates it) never saw the look of pride on that mother’s face the first time she fixed lunch for her family on the countertop she had helped install or pulled a load of clothes out of the dryer she had paid for with her own earnings.

Anyone can make money. And as much as our society might have you believe otherwise, money isn’t the answer to all your problems. There are enough miserable millionaires to fill a stadium. It is what having money makes of you that counts at the end of the day. Beyond fattening your bank account, flipping houses can give you the power to transform lives—your own and those around you. Get yourself a tasty beverage and find a comfy place to read, because I’m here to tell you how to do both.

The rest of this book details the highs and lows of the series of home sales that have occupied the past decade of my life. I explain where I made money, where I lost it, and precisely how much. I share stories of royal screwups, as well as every single painful but necessary lesson I learned along the way. I describe how this business has made me a better mother, daughter, neighbor, employer, and friend.

First, a note about semantics: For the sake of ease and clarity, I use the term flipper to refer to any person trying to make money by buying, rehabilitating, and selling a house for profit in the least amount of time. It is an industry term that we use on the television series Property Ladder, so it’s an unconscious part of my vocabulary. I know what you’re thinking because I’ve heard it before: Flipper was a dolphin. You, of course, are no one’s pet porpoise. You are a Real Estate Rejuvenator, a Realty Recycler, a Residential Resuscitator. Nothing negative is implied by the word flipper as I use it here. In some circles, however, the word has dubious connotations. Case in point: When other Realtors or neighbors hear of your plans, they may state (not ask) with no small amount of contempt, “So, you’re just gonna flip it.” You will likely see, if not actually feel, the spittle coming from their lips as they deliver this line. They are implying that you are going to cheap out, do the least amount of real work possible, hide as many problems as you can, use cut-rate materials, and walk away with a pocketful of cash. I don’t really need to say it, but I will: That is not what we are trying to do here.

If you are going to be buying and selling houses for a profit, if you are willing to gamble your money, spend your precious time comparing fixtures and finishes, run a crew, manage the most tedious of accounting jobs, put out an endless string of fires, and generally work your ass off, you deserve to be handsomely compensated. You are still a flipper, but in the best possible sense of the word: someone who takes a neglected and outdated space and polishes it into something attractive and desirable.

For sure, there are some flippers out there who do things on the fly—they continually cut corners, do shoddy work, use inferior products, maybe even treat their crews deplorably—and still make obscene amounts of money. They are sometimes called “lick and stick” or “fix and flip” experts and they are why flipping occasionally gets a bad rap. They may lug home a hefty paycheck now and again, but over time buyers find them out. Are lenders, real estate agents, and subcontractors willing to work with them again? Do they sleep at night?

You and I didn’t create this opportunity, but the reality is that there are many buyers out there who don’t have the time, skills, or interest to get personally involved in the fix-up business, and they’re willing to pay a premium not to have to do it. It is really not so different from going out to eat. My guess is that you are probably capable of reading a recipe, shopping for a prescribed list of ingredients, opening and closing the oven, and cleaning up all by yourself. But sometimes for whatever reason—you don’t have it in you, you’ve got other things to do, the dog ate your apron—you choose to pop into a restaurant and have your meal catered. Blissful, no? Do you think you’re being scammed just because you could have done it yourself but chose not to? As long as the experience is a good one, everyone wins. On the other hand, if your meal, the service, or the atmosphere was miserable, the eatery in question is not likely to get your business again (and you’re likely to tell anyone who will listen about your bout of botulism /surly server/rodent-sighting experience).

The bottom line is, don’t be that guy (or gal). Do the job right and you can wear your flipperhood proudly. Do it for the right reasons and I promise you that you will experience a kind of wealth you can’t even fathom yet. With enough folks like you and me in the game, eventually the term flipper might even begin to be seen as positive. Dare I even hope, complimentary?

Another note about terminology: I’m a modern gal, and I try my best to be politically correct. I know that men are nurses and women are neuroscientists. However, this book would be a miserable, tedious read if I had to say “he or she” every time I referred to a lender, buyer, seller, contractor, or real estate agent. It disrupts the flow of thought. So I alternate using pronouns such as he/she, him/her, his/hers, but unless I indicate otherwise, either gender is meant; the appropriate pronouns are interchangeable.

I’m a flipper. I can say that with confidence and pride. If you’d like to be a flipper, too—if you’re ready to enrich not just your bottom line but your entire life—read on.

2

MY STORY

Flip·pern. A person who tries to buy, rehabilitate, and sell real estate for profit. Or a dolphin.

If you are reading this book, chances are that you’ve either seen the television show Property Ladder, or someone you know recommended Flipping Confidential to you. Maybe Aunt Betty gave it to you as a birthday present because she thinks you are hiding your inner designer. Maybe you stumbled on it in a bookstore purely by accident and began thumbing through it out of curiosity. Whatever the case, now that you’re in possession of these pages you are probably wondering if and how I’m qualified to dispense advice on buying, fixing, and selling houses.

As I describe in detail in the following chapters, I’ve flipped houses enough times to land a TV show on the topic and, in fact, earn a nice living. Eventually, I could no longer ignore the constant requests to put my experiences down on paper. This is not all gratuitous boasting, I promise. (The truth is that my mistakes have been many and profound.) My hope is that by sharing my rent-to-own story and explaining what buying and selling homes has done for me personally and professionally, you may be inspired to jump into the flip game with minimum pain and maximum gain.

Now you may be asking yourself why I should care about you and your happiness. Part of the reason is admittedly selfish. The whole real estate industry (not just the handful of crooked flippers out there) often gets a bad rap. And since real estate is my career, I have a vested interest in changing the perception that anyone who makes money off of your money has to be a shark, right? And folks who talk in absolutes (“This house will never sell at that price”) cannot be trusted. People who feel the need to put their mug on every ad, business card, flyer, and sign they use are more interested in ego aggrandizement than personalized service. (I tend to agree with that assessment, although the industrywide belief is that recognition builds trust.) The truth is, Realtors have a tedious and time-consuming job, and if they are doing it well, they deserve every penny they earn.

But there is a bigger motivation for sharing my story. People ponder the question constantly: “Can you really have it all?” Who has it all—The former supermodel with a zest for life; a designer home; attentive spouse; well-mannered kids; ample time for her philanthropic passion; a massage and facial in the middle of the day, if she wants one; and of course, a job that she looks forward to most days even though she doesn’t need the money?

So what is having it all? The simplicity of having your basic needs met with a little extra on the side, maybe. There’s a book I read to my kids that illustrates my point. It’s called The Rainbow Fish (North South Books, 1992) and stars a flashy little fellow who happens to be covered in gorgeous, glittery scales. The Rainbow Fish knows that he is more beautiful than his oceanmates and snickers when they ask him to share his gilded gills. He is so much better than they are! Why should he share with the likes of them? And if he did give away his scales, why, he wouldn’t be better than them at all! So for a while, he chooses superiority over popularity. (I’m sure you can see where this is going.) Eventually, loneliness trumps vanity and he grudgingly gives away a scale. And then another. And yet another. Although he is becoming less glamorous with each offering, his happiness is growing exponentially. He has friends! The other fish like him! Alas, it was only in giving away what he had that he learned its true value.

Okay, it’s a little simplistic. But it’s a sweet story with a nice message. Before you get all exasperated, let’s get something straight. I am in no way suggesting that you work your ass off to build yourself a nice nest egg and then donate it to the nearest mission. The money you make is yours to do with as you please. Spend it, save it, gamble it away, set it on fire for all I care. I am simply saying that material wealth can and will bring you more (joy, freedom, grief, anxiety) than you ever dreamed possible.

Money is power, and how you use that power can make or break your happiness. If you’re miserable, chances are you will make your family miserable. If you experience bliss, so will your family. I worked hard to find happiness and I want you to find it as well. Who knows? You could turn out to be my neighbor or my daughter’s boss or my son’s mother-in-law. You might be the paramedic who rescues my best friend from the mangled wreckage that until recently was her car, or the flight attendant who holds my mother’s hand on the bumpy flight that’s bringing her to her aunt’s funeral. This world is a small place, and we’re all in it together.

Starting Out as an Actress

Although I love helping people, I never wanted to be a pediatric cardiologist, never dreamed of being a social worker. I started my professional life as an actress—hardly the Mother Teresa School of Philanthropy. It wasn’t any great passion for the craft of acting that prompted me to get a SAG (Screen Actors Guild) card, either. Like a lot of people, I found something I was good at and that came easily to me, so I did it. I know plenty of actors (and would-be actors) who believe with the utmost certainty that their life would be dull and meaningless if they weren’t onstage or in front of the camera. Not me. That just was not my shtick. I liked the work, it was fun, I made good money, and it gave me the flexibility and the time to go to yoga and get the occasional facial. Under worked and overpaid—not a bad gig. But I probably was as passionate about the triple chai latte that I would pick up on my way to an audition as I was about actually landing any particular role.

Despite my lack of driving ambition, the roles came. Acting and performing have remained in my blood from the day I first warbled “Do-Re-Mi” onstage at age 4; they are not going anywhere anytime soon. When opportunity knocks, I still take a flip hiatus to do a sitcom and give my blisters time to heal. I was double majoring in acting and music on a music scholarship (those flute lessons paid off) at Occidental College in a little suburb of Los Angeles when I landed roles on Saved by the Bell and Head of the Class. The acting department at Occidental was none too pleased. Apparently it did not want students doing professionally what the department was trying to teach. Rather than give up my income, I switched my majors to Spanish and French, not even realizing how useful the former would be in my future construction and real estate dealings. Once again, a seemingly benign decision turned out to be a secret weapon down the road.

Unleashing My Inner Designer

After a year of dorm living, I set myself up in a modest (okay, ugly) little one-bedroom apartment near campus and commenced decorating it. During the day, I’d work a little, maybe drop in on a Spanish or art history class, but outside school it was all about the crib. Keep in mind it was the mid-1980s, when black lacquer was all the rage and Patrick Nagel’s sleek, minimalist models adorned every other wall in sight. Me? Long before shabby was chic, I was into doilies. Doilies everywhere. My boyfriend during sophomore year of college was a jock, but his mom was as crafty as they come. Georgene knew her way around a glue gun and every weekend while my boyfriend was swinging a baseball bat, his mom would teach me the arts of basket-weaving, sewing machine threading, and teddy bear making. I sucked it all up like paint on a roller. No matter what time of day or night you happened to stop by my pad, the antique mahogany dining table was set with elegant linens, gilt-edged chargers, and delicately carved crystal (true to my inherited nature, picked up at garage sales and secondhand stores or passed down from Grammy). My crummy hand-me-down TV, too ghastly to look at, was camouflaged with Con-Tact (adhesive paper) in an effort to make it blend into my cabbage-rose wallpaper. I sponge painted my way across wall after wall, sanded and stained an army of used furniture, experimented with crazy color combinations, arranged and rearranged my two-room Buckingham apartment until in my mind, it became a palace (its absence of majestic carved ceiling and marble tile flooring notwithstanding).

Ten years later, the whole world would be copying my then cutting-edge Paris Apartment style. But at the time, it was funky. Different. Friends began asking me to help them decorate their apartments and dorm rooms. My mom would ask, “How do you know how to do this stuff?” And the truth was that I didn’t know how to do any of it. But I was struggling and resourceful and had found a relatively creative, reasonably healthy way to occupy my time and feel fulfilled. I also realized that environment influences mood and that if I had order and tranquility in my surroundings, I would have them in my life. That was a huge trigger for me. “Find what you love to do and the money will come.” It is the parental career-advice standby (delivered mostly, children suspect, because said parents don’t know what a binary engineer or neurolinguistic programmer is), but in my case, it was undeniably true.

While I was busy beautifying my granny-chic apartment, my newly divorced mom was giving her own nearby house a complete overhaul. I’d visit daily to share my unsolicited opinions on everything from the floor plan and paint colors to wall and window treatments. Finally, she threw me a bone—the basement was mine to do with as I pleased. The whole basement! The whole dark, low-ceiling basement. The understanding was that this little subterranean slice of heaven would be my home-back-home whenever I wanted or needed it. That being the case, the first thing that space needed was... space! Call me a prima donna, but seven-foot ceilings were simply too cramped for my six-foot-plus frame.