HGTV = More information or disinformation?

Question

HGTV, = more information or disinformation?

I have a 80 something relative, that insists that Property Brothers is real. I've never watched it, have yet to watch anything nonfiction on HGTV though. Maybe I should be more open minded.

Bob Okenwa · Answer

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Like anything reality-related, the term "reality" is used loosely. Are properties purchased and renovated? Yes. Anything beyond that is usually entertainment and heavily edited to fit in a nice 30 or 60 minute viewing slot and has a producer setting up/staging the "drama" that we see unfold during the show.

Chris Mason · Answer

It's crap. I wouldn't doubt that it is "real" in that the ad revenue from the TV show makes deals work that would otherwise be unworkable. A "flip" can be pretty damn far in the red but still be "viable" if it makes good TV that generates a bunch of add revenue.

You could probably steal THAT part of the idea and apply it elsewhere. Buy a trailer park at a 2 cap price, but syndicate a reality TV show about all the hilarious shenanigans and drama, and poof maybe now you're at a 20 cap. That's not the same as saying the cashflow of the trailer park itself is "real," however. The TV show is the point, not the trailer park. You could actually just skip the entire trailer park and (nsfw profanity) have a TV show...

Account Closed · Answer

I've been watching "Love it or List it". Find it interesting they always have drama over budget, yet never mention either property taxes or real estate commission. Two big expenses that really factor into decision making. They also act like like they are the only potential buyers for properties they look at. Unless their planning on holding costs for 2 properties, while theirs sells, those really great houses they look at would probably be under contract in days in a hot market.