“Real estate isn\u2019t supposed to be pretty. It\u2019s supposed to be profitable.” \u2014 Engelo Rumora<\/p><\/blockquote>\n
And with that little-but-important fact out of the way, I want to arrive at the point of my article today: reality TV flipping shows suck.<\/p>\n
It\u2019s one of those things that really grinds my gears. They show a world that’s too pretty, too good to be true, and too much like a fairy tale\u2019s world. True, it does lead to people getting interested in the business and lots of viewership, but imagine when a prospective real estate investor starts to believe that a home that looks like a dump can be converted into something that looks like the average Disney castle\u2014all for low costs and great profits and, of course, delivered within unbelievable timeframes.<\/p>\n
I’m sure you get my drift. So, the next time you turn on the TV and stumble across a flipping show, I suggest that you replace those rose tinted glasses with\u00a0real ones and consider these two points I\u2019m about to make.<\/p>\n
This advice is especially for those new wannabe real estate investors, who use these shows as educational material and the reason they invest their savings and start off. Let me warn you that over time, I\u2019ve heard of many people like that who have actually left the comfort of their good-paying jobs to venture into real estate with terrible consequences.<\/p>\n
So, this post is for those who take shows like that seriously and for those who want to get into real estate based on the beautiful world presented by them.<\/p>\n
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Smoke and Mirrors<\/h2>\n
To investors like me, most reality TV flipping shows are downright scary. And that\u2019s because they make the average viewer think that they too could invest just a little money, turn a house around, and sell it for sky-high profits. These shows often make the investors look like knights in shining armor.<\/p>\n
But those who\u2019ve worked in real estate can tell you that most of the figures they show on TV are bogus. Look closely at any of the shows, and you\u2019ll notice. You have to trust me on this, as I have already been approached by 7+ production companies and refuse to “act” unless I know I can be myself and that everything filmed will be the real deal.<\/p>\n
1. Math Missing<\/h3>\n
Most of the numbers are fake and have been created for the show. For one, notice how the rehab costs are always undervalued. They don\u2019t take many costs into account.<\/p>\n
Things like fees, holding costs, commissions, closing costs, etc. are all left out. In fact, the next time you watch a show like that, I recommend that you take a look at the actual market rates for the region and do your own math. You\u2019ll figure it out, too. The numbers seldom add up, and that alone reveals how scripted the shows are.<\/p>\n
In some instances, even the end sales price is manipulated. What a bloody joke.<\/p>\n
2. Buyers Galore<\/h3>\n
The shows portray that\u00a0there are always plenty of buyers lined up just to buy the house. (In fact, you’d also feel that houses suited to flip are easily found in the market.<\/p>\n
But in reality, it requires a decent understanding about the market and takes plenty of research, too. A real investor has to work really hard, not just to find houses to flip, but also to find buyers who\u2019d be interested in picking up the property.<\/p>\n
Related:<\/strong> Think Flipping\u2019s as Easy as it Looks on TV? My Story Will Change Your Mind!<\/a><\/em><\/p>\n Real estate is a time-consuming process. It takes some time to find a house and buy it. And it takes even longer to renovate it and finally sell it off. However, these episodes show quick turnaround times with massive renovations, as well. The program makes real estate appear as a get-rich-quick platform, luring in unsuspecting people.<\/p>\n These real estate investors seem to be of the know-it-all kind. They\u2019re seldom involved in doing any research. In fact, most of them just know the costs, repairs needed, and market information. They have all the data inside their head.<\/p>\n They’re never found researching, comparing, and learning, which is rather unusual for a dynamic market like real estate.<\/p>\n They have too much drama, and the investors are seen shouting at each other, commanding people to get work done. In a real life scenario, treating colleagues and workers like that would never keep the real estate investor in the market for long (unless you have an Aussie accent like me, and everyone thinks it’s funny when you curse).<\/p>\n Their personalities! It is hard to see real estate investors wearing expensive suits and accessories, driving huge cars, and then bargaining on small costs. A real estate investor is always a people’s person, because that’s the community where he buys and sells.<\/p>\n But these shows make real estate investors seem like pompous and rich people\u2014which most are not, in case you were wondering. This is a bloody joke, too.<\/p>\n I can’t tell you how much it pisses me off seeing someone wearing a $10,000 Rolex and sanding floorboards.<\/p>\n You can really make out how scripted the show is when you look at it closely. For example, in one of the shows, the real estate investor proudly announces at the start that he’s made a deal without even seeing a property. He also announces with pride that he’s sure to make a profit out of it.<\/p>\n And then he approaches the property, saying that he has to do something about the water problem. Which brings us to, how did he know about the problem without seeing the house at all?<\/p>\n Also, no real estate investor in their right frame of mind would buy a property and make announcements like that without ever even seeing it! The scenes and dialogues are always scripted, and any real estate investor will tell you exactly that.<\/p>\n If there’s one way to over-glorify real estate, it is to create a TV real estate flipping show. This is where the down-to-earth real estate investor becomes the suited hero of the show, where issues become challenges and there’s always a happy ending\u2014no matter what.<\/p>\n The hard reality of real estate is much different, and these programs are often money minting schemes. They are made for pure entertainment and have zero educational value.<\/p>\n Which brings us to the question, if there’s very little profit to be made through reality flipping shows, then what\u2019s in it for the makers of those shows? Why are they making a show that will not generate house sales at all?<\/p>\n Well, there is profit for them, and it comes from other sources.<\/p>\n A few episodes of shows like this and you\u2019re convinced that you too can dump your savings into a business and make a fortune flipping houses without any experience. In fact, scour the internet, and you\u2019ll come across many cases where people have dumped their savings into real estate.<\/p>\n The trouble is it really isn\u2019t that simple and requires a lot of learning, preparing, and smart investing. Most importantly, it needs plenty of financial investment along with the experience.<\/p>\n Related:<\/strong> House Flipping Reality TV Shows: Good or Bad for Newbie Investors and Flippers?<\/a><\/em><\/p>\n Notice how some of the episodes actually promote their boot camps. Many wannabe real estate investors have put in money to learn from the so-called television experts, so that they too can get rich quickly.<\/p>\n3. Too Quick<\/h3>\n
4. Know-It-All Investors<\/h3>\n
5.\u00a0Too Dramatic<\/h3>\n
6. Posh<\/h3>\n
7.\u00a0Clearly Scripted<\/h3>\n
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<\/p>\nMoney Making Schemes<\/h2>\n
1.\u00a0Rags to Riches Stories<\/h3>\n
2.\u00a0Promoting Boot Camps<\/h3>\n
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