Anyone used Curbio to flip?!

8 Replies

Kind of an interesting concept. I have thought about if there was a way to make money partnering with homeowners who want to renovate before selling but don't have the cash.

Definitely seems to be aimed at homeowners not investors. But they are very cagey about how they make money. Are they taking a cut of the increase in sales price or are they just marking up their renovation services and charging for those? Are they just a remodeling company with a different sales model?

From what I understand, Curbio completes projects and offers 100% financing until closing.  I've heard they tend to be pricier than their competitors, but have shorter timelines due to the way they do project management.

It might make sense if paying a premium for faster project completion fits into your business model.

curbio also mentioned if the property doesn't sell , the selling price will be reduced by %2 every month.  What happens few months later property got an offer and I want to accept but pay the rehab to curbio but it isn't enough commission for buyer and seller side.  Who makes the desicion which offer to accept.  Is it the listing agent or curbio has the option as well ? I am looking to buy properties for a flip and would like to use them . I want to know detail if it would be good investment for them to work on it so I dont have to worry about scam contractors in miami . Thank you 

I'm CEO of Curbio. Just to clear up some questions: We do pre-sale renovation and get paid at closing. We work with investors but will not do properties with a hard money loan on them. The realtor retains complete control over which offer to accept. We recently changed our 2% per month price reduction requirement to something much more flexible. Ultimately we are all on the same team - trying to get a home sold for the best possible price. We get paid for the renovation work. You'll have to determine how our prices compare but as one data point we do a complete gut/redo of a 7x5 bathroom for $12,500 and a complete kitchen for $24k.

Rick, 

What advantages would a home flipper have to using Curbio? Are projects really completed 60% faster than hiring another gc?

Im a realtor and market Curbio as part of my listing presentation. An estate tied up in probate is a great candidate for presale renovations but they decline Curbio‘s offer and elect to sell as-is . . . Can I take Curbio a proposal use that to market to an investor to purchase the home and how easy would it be to I guess “transfer” all the work we started with the proposal to the current home owner over to the cash buyer? Can the investor really hit the ground running with reno plans already in place as soon as the deals closed and investor takes control of the property? 

There are plenty of investors that utilizes hard money loans. Having a reno plan already in place and knowing how fast Curbio can get that house on the market that investor wants to use Curbio. Can they pay like they would any other gc instead of at closing?  

Adam: I am unaffiliated with Curbio, but very familiar with them, as our company, Purgula, has written about their offerings to help educate homeowners and agents.

Regarding how fast they are, I would ask how long their typical engagement is by budget size. Unlike, an independent GC, who undertakes a broader array of projects, Curbio’s project experience will be more uniform and consistent over time (e.g. focusing on a core set of projects, with similarly attractive traits: impactful; reduced complexity; reliable sourcing; etc.).

The "as-is" investor approach that you describe should work, as you would have all of the criteria necessary to be deemed a "qualified-prospect" for Curbio, e.g.: sufficient equity to cover a min $15K budget and ample up-side potential to deliver a sufficient positive ROI. Curbio would just need to do their standard vetting of the property and opportunity (e.g. virtual tour, data analysis, realtor input).

Your question about simply paying Curbio, like any other GC, is a good one! Clearly the big push-back from Curbio would be their need to maintain similar decision-making control on the improvements. However, today, homeowners are allowed to execute a buy-out clause that simply pays the full amount of the upgrades done by Curbio. Though good for homeowners, Curbio should include a minimum listing period, so that Homeowners don’t game the system to get quick & affordable renovations (e.g. listing without intending to sell, and quickly executing the buy-out). Agents would unfairly lose out if this scenario became popular.

In due time, I could see this happening for NON-pre-sale renovations, e.g.:

• Curbio develops a strong reputation for quality and efficiency

• Homeowners are attracted to Curbio’s ability to get things done efficiently, reliably and cost-effectively (no nightmare renos that go on forever)

• Curbio continues to enlist realtors as strategic sales partners, by devising a referral commission program for them, to mitigate channel conflict

• Curbio maintains sufficient decision-making control (e.g. project types; material & appliance options)

• Homeowners are given sufficient preference choices within strict guidelines (e.g. color palettes; good-better-best options materials)

But I suspect one of these two growth scenarios for Curbio might happen beforehand:

• Expand current offerings to owners of rental properties

• License technical infrastructure and processes to qualified contractors