We’ve all seen the reality TV house flipping / rehabbing shows . . . Flip this House, Flip that House, Property Ladder, Flipping Out, etc. These shows, I believe, have both positive and negative implications for those watching them. Here are just a few:
Pros of House Flipping TV Shows:
- Potential flippers are inspired to get up and get involved in the real estate investing business.
- Potential flippers can make a lot of money rehabbing properties.
- Newbies get to see an overview of what it is like making a living investing in real estate and from flipping houses.
- Homeowners can get many ideas for things to do to improve the value of their homes.
Cons of House Flipping TV Shows
- These shows glamorize what is a difficult business by showing experienced professionals in action.
- These shows rarely detail how to purchase a property below retail outside of going to foreclosure auctions.
- These shows don’t teach people how to analyze the financial side of a potential flip.
- These shows rarely, if never, deal with how to finance a flip, including getting a mortgage, hard money, construction loan, etc.
- These shows give newbie investors unrealistic time and money expectations for potential flips.
- These shows don’t help potential flippers figure out how to budget for repairs.
Granted, these shows are simply entertainment, but for many people, they do create a false impression of life as a full-time flipper/rehabber. On the other hand, they have lit the fire under tens of thousands of people’s backsides and have inspired a new generation of newbie or wannabe house flippers and real estate investors.
With all of this in mind, I have one question for you all . . .
Do you think House Flipping TV Shows are more of a positive or negative influence on new investors?House Flipping Reality TV Shows: Good or Bad for Newbie Investors and Flippers? by Joshua Dorkin