Author Topic: Flip or Flop  (Read 270882 times)

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Offline tarekfliporflop

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Re: Flip or Flop
« Reply #15 on: April 19, 2013, 01:11:44 PM »
This is Tarek from Flip or Flop HGTV

Offline irvinehomeowner

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Re: Flip or Flop
« Reply #16 on: April 19, 2013, 02:50:40 PM »
This is Tarek from Flip or Flop HGTV
True story?

Well... if so:

1. Are some of the auctions staged? It looks a bit preplanned to me and I read that some of those storage unit shows "reenact" the auctions.

2. Where did you get the initial funding to start flipping? From the OCReg article, seems like you guys hit hard times and were renting a $700/mo apartment and not everyone has over $200K sitting in their pocket.

3. Of the contractors you use, which ones do you recommend the most?

4. Have you flipped an Irvine house?
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Offline nosuchreality

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Re: Flip or Flop
« Reply #17 on: April 19, 2013, 09:28:09 PM »
This is Tarek from Flip or Flop HGTV
True story?

Well... if so:

1. Are some of the auctions staged? It looks a bit preplanned to me and I read that some of those storage unit shows "reenact" the auctions.

2. Where did you get the initial funding to start flipping? From the OCReg article, seems like you guys hit hard times and were renting a $700/mo apartment and not everyone has over $200K sitting in their pocket.

3. Of the contractors you use, which ones do you recommend the most?

4. Have you flipped an Irvine house?

I'll add one:

What's the time lag between the filming and the TV showing.  i.e. they're showing now, but for the first episode house, when was the actual purchase, the work and filming, sale etc.

Offline tarekfliporflop

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Re: Flip or Flop
« Reply #18 on: April 20, 2013, 10:26:39 AM »
I actually started flipping in 2008.  I decided I wanted to flip houses so I approached a friend of mine that was 10 years older who owned a mortgage company and instead of blowing his money he invested it, very smart business man that can see opportunity.  I knew nothing about how to buy at auction. He said we could flip one together but first I had to prove I knew what I was doing.  I went to auctions all day for weeks to study how the process works.  I got into real estate when I was 20 so I have extensive knowledge of property value. You make the money when you buy, not when you sell.  I had like 30k from stocks but we had to come up with 60k.  We borrowed against credit cards to cover the difference, very scary.  So we bought and flipped our first place, a condo, and after all costs I made a net profit of $13,000.00 that is above 20 percent roi in 90 days which is 80 percent annualized.  My partner was happy so he said let's do it again.  The second project was a big one.  I interviewed contractors and went with the cheapest, terrible mistake, you get what you pay for I learned!!!!!  I spent 6 miserable months with a job I can do today in 30 days.  At the end of all that work I made $6,000.00. Partner was not so happy. The deal was, he put up the $$ I did the work.  In 2008 I did 3 flips, 2009 4 flips.  It got better and better every time.  My partner said he would give me a huge opportunity based on my proven track record with him. He said if you can find the deals he can find the money. In 2012 we flipped 17 houses. This year 2013 we have closed 14 year to date and currently own 17 either listed, under construction or in escrow.  We are on track to do 50 this year, of course I have hired my 5 best friends to work for me so the growth has been great.  Today that investor is a 50/50 business partner. We both have all our money invested together and have grown our fund to 4,000,000 cash so no hard money on the first $4,000,000 invested. So, I didn't start with a lot of money, I proved myself and grew a business based on my business plan and track record.  All the profits you see on show are real but I split that with my partner. They don't show that on the show because its confusing for the audience to understand.

By far the best contractor is Israel Battres from Battres construction, such a great honest man!  Currently I am flipping my first house in irvine on 114 coral rose, it's a 1 bedroom condo in turtle ridge.  I sent the initial home camera video over 3 years ago, it's been a long time!!  I started filming the actual show January 2012, I just finished my last interview yesterday although for the last 2 months I haven't filmed to often other than interviews.  The shows are not in order but the ones we just aired are over the summer.

So bottom line I was a kid from Buena Park and got into real estate at 20, made a lot of money, than lost it all.  The difference is, I never stopped making payments, I have percent credit. When I couldn't afford the payments I sold the items. I never short sold or had a car taken away, I sold everything. I had a 90k Mercedes and an escalade and a beautiful home. I sold my cars and bought a Honda civic, that was a day I will never forget.  I have worked for and earned everything I have and have learned valuable lessons along the way. Please watch and I hope you enjoy the series!

T


Offline irvinehomeowner

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Re: Flip or Flop
« Reply #19 on: April 20, 2013, 11:19:53 AM »
6. Are you considering keeping any properties as rental income properties or do you just want to flip them? I guess that can be the title of your second show, "Flip or Rent".

7. Out of all your flips, how many were money losers if any?

Since you sidestepped my 1st question, I can assume what the answer is for that. I saw the episode with Israel Battres and I did think he was very likable and honest.

Thanks for your time and answers... I have Flip or Flop on my DVR schedule. :)
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Offline tarekfliporflop

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Re: Flip or Flop
« Reply #20 on: April 20, 2013, 11:53:01 AM »
Real estate auctions where we buy are real. I must have cashiers checks to buy cash( I lost a 20k check once that was a nightmare)!!  I started a new business about 8 months ago buying rentals.  I have purchased 11 so far with creative financing.  I buy them cash than I get a blanket loan(1 loan) against 5 properties at a time at 10 percent interest at 65 percent Ltv.  Even with the high rate I cash flow because I only buy really good deals.  Have I lost, no I have not although I have been close a few times when I was new to flipping  which was very scary.  All I do all day everyday is study and buy real estate.  I am starting to learn more about construction.  The good thing is my construction team is good and honest and one contractor Battres construction runs all my jobs.  It takes a good team to be successful. It took years to put my teams together.

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Offline irvinehomeshopper

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Re: Flip or Flop
« Reply #21 on: April 20, 2013, 03:08:59 PM »
It was good thing that many homeowners went for trendy finishes and fixtures of the era. These dated and unattractive homes became your palette. Beside replacing finishes are you making structural modification and room addition to improve the flow and function of the homes?

Real estate auctions where we buy are real. I must have cashiers checks to buy cash( I lost a 20k check once that was a nightmare)!!  I started a new business about 8 months ago buying rentals.  I have purchased 11 so far with creative financing.  I buy them cash than I get a blanket loan(1 loan) against 5 properties at a time at 10 percent interest at 65 percent Ltv.  Even with the high rate I cash flow because I only buy really good deals.  Have I lost, no I have not although I have been close a few times when I was new to flipping  which was very scary.  All I do all day everyday is study and buy real estate.  I am starting to learn more about construction.  The good thing is my construction team is good and honest and one contractor Battres construction runs all my jobs.  It takes a good team to be successful. It took years to put my teams together.
"I can only imagine at a house warming party what a total embarrassment it would be to tell the guests that there is no tour because there is no more house to show you because you are standing in the only room in the house. "

Offline tarekfliporflop

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Re: Flip or Flop
« Reply #22 on: April 20, 2013, 03:27:42 PM »
The design is very important but the flow of the house is also important. In Flop House Flip episode I made the hall bath way larger and added a full shower/bath combo,  by removing the huge fireplace and adding an island it made the area look twice the size.  In the Spanish style episode I removed the wall between the kitchen and dining area and added a island area and opened up the space as well.  I have an episode coming up where we made major changes structural changes.  Also, regarding my wife's car, it is very nice. Me, I just sold my Mercedes and bought a 2007 gmc Sierra for $21,000 with a lift kit etc.  I'm just a normal guy that lives in Yorba Linda.

Offline USCTrojanCPA

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Re: Flip or Flop
« Reply #23 on: April 20, 2013, 06:05:13 PM »
How much was the most that you made on a flip?  Have you ever lost money on a flip?  Also, who do you use to list your properties (do you list it yourself)?
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Offline SoCal

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Re: Flip or Flop
« Reply #24 on: April 20, 2013, 06:16:26 PM »
Also, who do you use to list your properties (do you list it yourself)?

Pssst. The listing agent name section on 114 Coral Rose should help.
« Last Edit: April 20, 2013, 06:51:54 PM by SoCal »

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Offline USCTrojanCPA

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Re: Flip or Flop
« Reply #25 on: April 20, 2013, 06:56:50 PM »
Also, who do you use to list your properties (do you list it yourself)?

Pssst. The listing agent name section on 114 Coral Rose should help.
Thanks.  Some flippers use a regular realtor while others have a realtor in their investment group.  I wonder why he used another agent to buy it as a short sale.  I'm seeing more and more short sale flips.
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Offline Liar Loan

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Re: Flip or Flop
« Reply #26 on: April 22, 2013, 02:11:23 PM »
Real estate auctions where we buy are real. I must have cashiers checks to buy cash( I lost a 20k check once that was a nightmare)!!  I started a new business about 8 months ago buying rentals.  I have purchased 11 so far with creative financing.  I buy them cash than I get a blanket loan(1 loan) against 5 properties at a time at 10 percent interest at 65 percent Ltv.  Even with the high rate I cash flow because I only buy really good deals.  Have I lost, no I have not although I have been close a few times when I was new to flipping  which was very scary.  All I do all day everyday is study and buy real estate.  I am starting to learn more about construction.  The good thing is my construction team is good and honest and one contractor Battres construction runs all my jobs.  It takes a good team to be successful. It took years to put my teams together.

This is why most people won't succeed as flippers.  You have to love real estate in order to do this.  Love of money isn't enough.

Offline tarekfliporflop

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Re: Flip or Flop
« Reply #27 on: April 22, 2013, 04:06:33 PM »
Hi!  I will use any agent that brings me a deal.  I will also pay anyone that brings me a deal for example if someone on this blog brought me a deal.  The truth is you have to be in love with what you do to be successful at flipping homes.  Real estate is my obsession and I love everything about it.  I have 2 all new episodes tomorrow night, it will give America a good idea of why flipping is risky......

Offline nosuchreality

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Re: Flip or Flop
« Reply #28 on: April 23, 2013, 09:30:10 AM »
Not to nitpick, but I think both of you are mistaking "loving it" with "putting the time in it".

You don't have to love it.  You do have to put your time in it.  You are not going to be successful doing it part time or trying it on for size around your 'real' full time job.  It takes 40-80 hours a week and maybe then some to find the deal, close the deal, then rehab it and finally sell it.

Lovin it, or at least enjoying it enough is essential or you simply won't put in the time.  I know very few people that can get up every day and slog off to "work" at something they don't enjoy for more than a year or two.

Good luck with your effort Tarek, I've set to record as I want to see more of the local action.  I hope you succeed, with requisite bruises. Not because I wish the bruises for anyone, but they're inevitable in what you're doing and IMHO, HGTV in prior shows has done a huge disservice by glossing over the bruises.

I'll ask one favor on behalf of the community, stay decent and don't become a tool like Montelongo...
« Last Edit: April 23, 2013, 09:41:53 AM by nosuchreality »

Offline qwerty

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Re: Flip or Flop
« Reply #29 on: April 24, 2013, 12:21:45 AM »
Saw both shows tonite. They were good.

Tarek - just curious on the Anaheim auction purchase it seems like you could have driven by the morning of or day before the auction to check the condition of it before you bought to either avoid buying or pay less to account for all of the damage. It turned out well either way since you got 10k above your list price - did it actually close for that?

 

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