I'm trying to find a target client after opening a home integration and audio video company.
I've been looking at a couple of flips in the area and noticed that no one is really wiring for security cameras, access control, theater rooms, home security, audio/video distribution, shades,lighting, home automation and integration.
I would imagine adding these features to a home would increase sale value am I wrong?
Yeah, I'm probably not qualified to answer this.
I don't believe these upgrades would offer enough bang for the buck to a flipper. They may make a property more desirable but not more profitable.
Your target market, I think, would be higher end home owners.
Of course, marketing to flippers isn't necessarily bad but probably wouldn't fit in the 80/20 rule.
Like @Alex Presnell , I enjoy the personal home automation bit. Putting it into a flip would kill my rehab budget though. I am sure in some select areas there are flippers working on really high end homes but they are going to be rare.
@Surgess Santacruz I've worked in the business for over 15 years and started my company about 10 years ago. I've reached out to local custom home developers just trying to start a conversation about what we do. There's typically very little interest and even spending $3500 for a basic wiring package in a home that will sell for over $1 million, is a bit of a hard sell. We've always had the best success developing a working relationship with custom home builders who will then introduce us directly to their buyers. The homeowner is typically the one who wants an integrated home and the builder is happy not to have to be the middleman and negotiate all the details.
Another thought for you...What if you created a basic alarm package (like Honeywell Lyric) and offered to lease or sell it to flippers? I'm guessing that there might be many flippers who want to protect their asset during the renovation phase, but don't want to sign a long-term contract. You could offer equipment & monitoring for maybe $50 /month or sell them the gear and then move the system to their next home. Just an idea I had. (but not the time to implement :)
Send me a PM if you'd like to discuss this further.
I appreciate all the input I have reached out to some home builders in the area and so far "pre-wire" is really the only thing they are interested in.
I can see how the market is right now the house will sell with or without the upgrades.
@Ari Newman that's a pretty good idea basic wireless alarm but I'd probably recommend an arlo go and call it a day as power and signal may not be available.
Would offering a kickback to flippers recommending customers services be appealing?
@Surgess Santacruz It really depends on each person/company. Me? I don't deal with the buyers. I have realtors that do that. So I wouldn't be able to do much with that, but there are a lot of people that do deal directly with buyers and maybe they would be interested?