Altus, OK · Member since 2008 · 2k+ posts · 690 votes
Flip Men on Spike TV
For those who don't know what it's about,it's about 2 men who buy properties sight unseen,rehab flip them and sell them for profit much like the earlier flip shows only difference is that they buy the properties sight unseen and take the risk of buying badly damaged homes in order to turn a profit.
My favorite part was their original exit value of $139k that magically increased to a final sold price of $189k. So basically, because they added a bath upstairs and took a week to paint the exterior brick (yeah right) and they changed the layout of the staircase and opened up a wall, they gained $50k in value? I cant wait for my next project, I will add a $4500 bathroom, do some additional paint work and open up a wall so I can make $50k too!!!
There is one answer that readily comes to mind: When a property owner loses the property to foreclosure - it has $0 value to that former owner (even though they maybe could have sold it for something, but they didn't). True, the value of the RE is still there to somebody, but not to the person who experienced the loss.
I watched a couple episodes last night. Its good TV I'm sure any reality show to someone in that industry seems quite skewed.
My goal if I were on this show would be to build a name in the area in hopes of leads finding me so I could avoid the court steps and snipe some great FSBO's on the cheap.
There are several situations when real estate has 0 value to someone who owns or could own it.
We deal with a larger bank that offered us several multi family properties because they had such bad problems that it was not worth taking them back and owning them. When people like me pass the banks let them go back to the city for taxes. This is quite common. The bank will always to a BPO and a Phase I and with that info they will decide what they want to do.
The second is land in the hood where the house has been taken down for code violation or for fire. These lots sell for $1 all of the time for recording reasons. I would pay someone to take it off my hands if I could not give it back for taxes.
There could also be a lien worth more than the property.
The last one I can think of is a situation where the improvements on the property need to be razed and the cost to do it exceeds the cost of the land. This would make the property worth 0 in my book.
Agreed, there are always things you can learn from someone else doing deals. But, it seems like the drama goes too far in some of the new shows. Lots of "Flippers " & " Habbers " out there, doing there jobs, and making money. Dont need TV deals. Sold a property for a local " Habber " last week, and she mentioned giving someone else the opportunity of owning a home through her efforts.
I am Doug Clark from Flip Men and I do enjoy hearig back from people about the show. I most respect and need negative feedback becasue thats the only way we can make the show better.
Let me first say that I had a wonderful chat with Josh and I am impressed with BiggerPockets and the community that uses it! Mike and I are the farthest thing from actors. We are professional real estate investors who have purchased from the court house steps for years.
I can assure you there is no more accurate show on TV! We show the real information we know at the time, and the real numbers when we are done.
I have seen the other shows who claim they are into a property 130 and sold it for 140 and made 10k in profit! Thats Laughable!
I love any and all feedback and believe me, I understand anyones frustration or questions....after all, i'm on your side. I'm an investor, not an actor!!! (if you have seen the show you will know what I mean LOL)
Thanks Aurthur!!! Believe me, its a nice break from all the article writing, interviews, and commitments from the TV show. I love how quickly you have dove in and created cash flow. 15K a month would free most people from ever needing to do anything else again. Its a great goal! I flip to make a living, and so I can hold more properties. BUY and HOLD is the golden ticket in real estate...and yes that is coming from a professional home flipper!
There is one answer that readily comes to mind: When a property owner loses the property to foreclosure - it has $0 value to that former owner (even though they maybe could have sold it for something, but they didn't). True, the value of the RE is still there to somebody, but not to the person who experienced the loss.
Steve and Jeffrey who both commented on my quote - You guys are takin what I stated out of context. I am aware of situations in which RE can have liitle to no value, my comment stemmed from the show itself where pros who buy at courthouse steps for cash - in such a scenario, there are no bank loans and they are usually buying at $100k or more. Disregarding a situiation where one could be a fool and purchase a second note, thinking they bought a first position deal, there is no way that the investor could lose 100% (or as they put it - "everything!") It is that line that is overly dramatic which is what I was commenting on.