Flip or flop

16 Replies

Is it me or does the couple on Flip or Flop have way too much success?  Every deal they do, with rare exception, seems to net them $75k!!  Is this show based in any reality or purely for entertainment?  The Cute blonde doesn't hurt ratings but it makes the whole process seem so simple while the rest of us sweat it out..........

They have an equity partner, and they never figure in the fact that they are splitting the profits 50/50. It's reality TV, just like all shows on TV they know the formula to get ratings. I love when he wears flip flops into the construction/rehab sites. The contractors on those sites are giving them amazing deals to advertise their companies, as well. You need to take all those shows with a grain of salt. 

All of those shows are scripted, and I know first-hand how the producers like to exaggerate (and that's being generous) the profits depicted.  While some of the labor/material is being provided at a discount (for TV exposure), the producers are happy to ignore the non-hard costs of the purchase and rehab, which skews the actual numbers considerably.

I recently tried to watch this show recently and it took me only 10 minutes to realize that it is a "fake reality show". They purchased a property and the next day showed up to a completely staged party scene. Complete with spray paint graffiti inside, red solo cups and trash everywhere outside in the yard. I'm not sure what else was staged at the house because I had to use my time elsewhere. 

I have recently become a fan of "I Love Real Estate Stories" on youtube!! Great quality stuff right there!!!

Just echoing, but keep in mind that it is not an educational show, it is for entertainment purposes.  The only part I find really accurate about those shows is that something always seems to happen at the 11th hour to jack up the rehab price.  But even if everything was accurate, if they are full-time flippers with a network behind them, they can take on tons of deals and only show the filming for the properties they make a killing on.

I do like the show with Mike Holmes up in Canada, because they seem to give fair prices for the materials, and then he ends every accounting with "and that doesn't include us."  It also seems marginally educational.

Originally posted by @Matthew Vitlin :

Just echoing, but keep in mind that it is not an educational show, it is for entertainment purposes.  The only part I find really accurate about those shows is that something always seems to happen at the 11th hour to jack up the rehab price.  But even if everything was accurate, if they are fulltime flippers with a netweork behind them, they can take on tons of deals and only show the filming for the properties they make a killing on.

I do like the show with Mike Holmes up in Canada, because they seem to give fair prices for the materials, and then he ends every accounting with "and that doesn't include us."  It also seems marginally educational.

 Take it from a Canadian Mike Holmes is BS aswell. He is not even a certified red seal carpenter lol, he whores his name and makes a killing. He made his name by going into homes and criticizing other carpenters and making them look terrible. Check out Jared Hope at LLR for a great canadian flipper. 

To their credit however, I know they do buy houses and actually do deals. I've competed with them for deals once or twice. 

How how they get a net of $75K, I'm guess how it is calculated is $40K for the net profit after the flip , and since they are realtors and they double end their commission they add another $35K for a $700K house to give $75K. 

But to be able to consistently snag sub million houses that gives $75K nett clean and clear deal after deal is pretty tough I think. 

Hmmm. I love the show. And I do think its fantasy numbers. I'm not suggesting the numbers are made up but california is just a whole other animal when I compare it to what I'm dealing with.  

I see them looking at 3/1, 1,200 sq ft for 650k and they're saying what a bargain it is. :-)
Thats just craziness there. But its that area.

Here are my thoughts:
1) Rehab costs. I actually think their contractor is a bit price but about what I would think california contracts would be. I think I saw one where they had to rewire the house (1,000 sq ft) for 6k. Definitely seemed high to me. I've only done a couple and I have never paid 6k.

In terms of Homes on Homes. I do like that guy. He's honest and he's as good as it gets. But he only works in canada and their rehabe costs are crazy high in my mind. I think I saw one where they did a kitchen for like 70k.  And this was after the people said the previous contractor ripped them off. I was thinking that they were getting ripped off again by paying 70k. :-)

2) Numbers.  Yea. Their recipe has always seemed a bit fishy. They are either the worst investors ever or that california market is just really easy to make money on.  Almost every single episode I see, they walk thru the house and come up with some rehab estimate of say 60 or 70k with comps in the 550k range. And then by the end of the show, they've blown by that rehab budget by almost double (120k to 130k) and they list the house for 650k and make a bunch of money.

It makes no sense how they can miss their rehab estimate by 50 or 60k almost every single time and still make money. 

That being said, the show is called Flip or Flop and I have seen them lose money or make next to nothing on a couple of deals so it does happen. And I don't see how you can name the show flip or flop unless you actually show some flops. 


3) Reality vs Educational.
Ultimately, here is where the real value comes into play for me. I don't watch their show to see how much money they make. I don't care. Its all funny money to me anyway given their market is so vastly different.  What I do like seeing and learning from that show and all the other reality shows are the design ideas.

You get to see more ideas from these shows than any other way possible. Although I haven't tried the youtube thing so maybe I'm missing out on a gem there.  But I actually like to see their design ideas. Some are things I would have never thought of and love it. Others, not so much.  

And I really believe that if you're going to watch these shows to learn how to make money as a flipper, you're probably not doing yourself a service.  But if you're watching these shows so you can see some neat design ideas and learn how to deal with some crazy issues as they come up, then there is some real world value in watching them.

And I find the people entertaining and actually enjoy watching them.

My only complaint lately is what happened to all the flipping shows?????
Flipping Boston. Gone.  Flipping Vegas. Gone. There was one in arizona where they bought on the courthouse steps. I loved that one too. GONE.

The have flip or flop which is good. And then theres' the one with the Gaines that is ok (they show three houses, the buyer picks it, and then she does all her design work and chip does all the contracting work).  Rehab addict is a distant second because she only does the restoration stuff.

The entertaining people are all gone and instead they're doing ones like the flip texas thing where they buy these bandboxes and move them somewhere in texas and sell them at some hillbilly auction. There is no design knowledge being gained there unless you're doing mobile homes. :-)

Woah, wait a minute. You guys are saying that reality shows might not actually represent "reality"? Oh wow, I don't know how I'll get out of bed in the morning. My world is crumbling around me.

Next you're going to tell me that the most famous athlete in the world in his time, the iconic symbol of all around male athleticism from my youth is now in his 60s and has become confused about his sexuality. LOL!

...yeah, they never mention the UNSEXY numbers like the costs of permits, staging, marketing, holding, closing, selling, insurance, etc!

Originally posted by @Cody Stone :

I recently tried to watch this show recently and it took me only 10 minutes to realize that it is a "fake reality show". They purchased a property and the next day showed up to a completely staged party scene. Complete with spray paint graffiti inside, red solo cups and trash everywhere outside in the yard. I'm not sure what else was staged at the house because I had to use my time elsewhere. 

I have recently become a fan of "I Love Real Estate Stories" on youtube!! Great quality stuff right there!!!

 @Andy M.

Originally posted by @George P. :
Originally posted by @Cody Stone:

I recently tried to watch this show recently and it took me only 10 minutes to realize that it is a "fake reality show". They purchased a property and the next day showed up to a completely staged party scene. Complete with spray paint graffiti inside, red solo cups and trash everywhere outside in the yard. I'm not sure what else was staged at the house because I had to use my time elsewhere. 

I have recently become a fan of "I Love Real Estate Stories" on youtube!! Great quality stuff right there!!!

 @Andy M.

 I absolutely love that Jonny Wu quote!!!