Posted by Aaron on September 18, 2005 at 22:32:28:
I have yet to attempt an REI, but I agree these shows are best watched for entertainment value than “How To.” Especially the two guys who met online. It was actually rather pathetic to watch them stumble through whatever they thought they were accomplishing (especially the “kitchen guy” who had absolutely no clue about what he was doing). What I find interesting is how many people on these shows want to apply what they THINK will sell a house, rather than paying attention to -if not the host- current market trends and contemporary design ideas. These shows are excellent examples of how to make poor business/investment decisions. Still, they are worth the laugh.
Property Ladder and Flip This House - Posted by Gerald(NC)
Posted by Gerald(NC) on September 11, 2005 at 21:53:53:
Well it turned out to be a great Sunday! Property Ladder marathonwas on, and I caught the new episode of Flip This House.
PL finally showed some lesser priced rehabs for once. They also showed some true “newbs” that you just know didn’t get what they were wanting for the properties. For the first time, one of the shows didn’t even show if, or when, they sold it after like 25 weeks of waiting. It just ended saying hopefully they would sell it, lol.
FTH was funny due to them waiting all night to “catch the thieves” while sitting in their truck drinking beer, (oh those were the days). The house was very cute as well, and is exactly what I’d love to find for my first rehab. I would love to find a cheap 2 br with that much attic space to turn it into a master and master bath. Oh the dream of us young REI’s
Anyway, post your thoughts if you caught the shows.
The one with the guns and alcohol is the only one I’ve been able to catch. It cracked me up. Not a good combination, but makes you wonder how you would deal with stuff being stolen from your rehab.
Re: Property Ladder and Flip This House - Posted by wolmic
Posted by wolmic on September 12, 2005 at 13:40:31:
There are actually 3 shows out there.
Flip This House A&E Saturday 10/9
Trademark Properties - Experianced rehabbers and their deals - Trademark is a full service real estate firm commercial/residential/investment consultants and principle investors(this is the part of the business taht is on tv) Check out thier web site. Trademarkproperties.com
Flip That House Discovery Home Ch thurs10:30/9:30
This is the worst of the 3 in my opinion. These are rookies who make bad mistakes. They generally come out unscathed, but I would say few of them make any real profit after all costs are tallied.
Property Ladder TLC Saturday 10/9
An experianced rehabber woman helps newer rehabbers. But they rairly listen to her advice and screw up. Many of them get lucky and make a buck But not usually as much as they state. They forget about holding and buy/sell fees some of the time.
Property ladder has been in reruns for more than 6 weeks. They only filmed 9 epiosdes total. The property ladder website does not indicate that they will be filming anymore episodes, so presumably there will not be a second season. Too bad, I wanted to see some SoCal wantabes crash and burn when the bubble bursts.
Re: Property Ladder and Flip This House - Posted by Stew(NE)
Posted by Stew(NE) on September 12, 2005 at 24:52:11:
Just finished watching it at 12:30am. I have a ATI TV Card and my wife recorded it. I like FTH. The “catch the theives”, was probably staged. But that is how “Reality” TV show is done today. He seems to buy Houses at almost FMV and then does a lot of work (100K) on a 2br 1 bath house. Man you had better have some good comps and soem good crews. He did get a permit this time. The cabinets were 10K. 10K!!!. Roofing was 5K. That sure seemed a lot for such a small roof without any steep angles. But if you want to motivate them you are going to pay extra. He has a lot of overhead staff to pay. He made 72K on this house. Interesting. However, I do see with his business plan of 50K every two weeks coming in is 1.3 million (All houses he does are done in two weeks). I guess you can afford a staff. It pushes my thinking.
I cringe when I watch this program. The people purchasing the properties don’t buy them right. They do most of the work themselves. They under budget the job. They do not listen to the host who supposedly knows more than they do. They all underestimate the amount of time that the project will take to complete. They don’t have comps so they don’t know what is reasonable to ask when the project is over
When the project costs more than expected (they don’t have a budget) and takes longer than they guessed, what do they do? They increase the asking price, of course. They typically get more than they thought they would ask at the beginning. Was this because they originally were asking too little or they wanted (or needed) more to make the amount they wanted to make? The final number the show gives as profit doesn’t include hold costs, credit card charges, and closing costs (including a real estate commission). How much money did they actually earn? Who knows. The rehabbers might not even know. By and large, this shows that people that don’t know what they are doing make money. THIS IS VERY BAD!!! Maybe I better stop watching this program.
Flip this property is better. It shows even full-time people with a crew can screw up. They don’t make it clear that to do what they are doing you must have a crew ready, willing, and able to dejunk the house and start the project at or before closing.
Re: Property Ladder and Flip This House - Posted by David Holstein
Posted by David Holstein on September 23, 2005 at 11:01:14:
Your remarks are right on target but most people interesred flipping can’t afford 50 people on the payroll. The other two shows are shot in California(la-la land) and the inexperience of the flippers makes me sick to my stomach! There are not a lot of places in the country where a 3bdrm, 2 bath sells for a million dollars.
Re: Property Ladder and Flip This House - Posted by Gerald(NC)
Posted by Gerald(NC) on September 12, 2005 at 11:02:47:
FTH comes on on Sunday nights on A&E, reg cable.
Property LAdder comes on on TLC Sunday nights as well if I’m coorect.
Both shows are replayed during the week as well, so just keep an eye on those channels and you’ll find it.
It is excellent motivation to watch these shows, even if some of it is “unreal”, I still think it can motivate and teach you different things about REI.
I also watch A&E’s “Sell This House” and TLC has one similiar as well. A&E’s show is all about “stagin” a house for an Open House with very little cash. Usually like $300 or less. Where as TLC’s nromally does it on $2000 budget and does more than just “staging”. Still you can learn from these shows.
I cringe when I watch this program. The people purchasing the properties don’t buy them right. They do most of the work themselves. They under budget the job. They do not listen to the host who supposedly knows more than they do. They all underestimate the amount of time that the project will take to complete. They don’t have comps so they don’t know what is reasonable to ask when the project is over.
I Say:
Sounds pretty much like human nature to me… You can tell someone something that would cost them $100000 for a consultant to tell them, and they won’t listen… but if they pay someone 100,000 for it, they listen.
I have only watched PL once and I can say this, thank God for these suckers that they live in areas with appreciation… it bails them out in the end… .they would have their underwear fed to them for breakfast if they tried that stuff where I lived.
Posted by Gerald(NC) on September 13, 2005 at 12:50:43:
Yeah there are def some problems with the people that come on PL. I find it funny when they don’t listen, and then screw up. Sad, but funny in an entertaining way to me. But yes it definitely gives people the wrong idea about REI. I can’t stand these shows calling them “Flips” when to me they aren’t flips, they are rehabs.
Most of these people put out the cash to buy the prop, then end up making monthly payments as holding costs till they sell it. This isn’t flipping, not in my book anyway.
But most of the time I’ve seen, they do show the holding costs included in the “Expenses” category. And they tell you straight up that the “profit” doesn’t include the sale’s fees. They norm say a “A profit before fees of…”
But I wonder about one I watched over the wknd. The 2 gentlemen that met online and decided to do it. I wonder how much they lost or if they ever sold it and made profit. They showed them up to like 25-26 weeks and they still hadn’t sold. It’s the first PL I’ve seen that the people didn’t sell it during the show’s recording time. So to me they didn’t sell it within 6 months! I think their holding costs were like $3k-$4k/mo. You know that sucked, and drained any profit they had in it most likely. Idiots should have listened to her, yet no one hardly does.
Re: Property Ladder and Flip This House - Posted by Scott Enright
Posted by Scott Enright on April 10, 2006 at 09:47:49:
I’m very interested in becoming a subcontractor for your “Flip This House”! We specilize in many phases of consruction, excavation, grading, conrete, landscaping, decks, garages, and more it would be an honor to work with your company. Thanks, Scott Enright
still no specific mention of ‘new’ episodes. But that might be some marketing strategy.
I checked the schedule, there are episodes on the 17th and 24th that have descriptions that appear to make them ‘new’. Though it is possible that they
were filmed at the same time as the prior episodes, but not aired till now because they just were not very interesting. I can’t stomach another $50K SoCal profit where the entire profit resulted from appreciation.
