Flip or Flop

irvinehomeowner

Well-known member
I saw this article in the OC Register about a couple who are RE agents and had to downsize when the housing market busted. Now, they are doing flips and we able to get an PieTown show on HGTV about it:
http://www.pietown.tv/Shows/flipflop.html
http://www.hgtv.com/flip-or-flop/show/index.html

Saw a couple of episodes last night... makes me wonder where they got the funds to buy these homes at auction. They seem to be making about $50k per flip no matter the issues that come up... is it that easy?

I wonder if PieTown or HGTV is interested in a show called "3CWG Hunters"... or "FCB Style"?
 
irvinehomeowner said:
I saw this article in the OC Register about a couple who are RE agents and had to downsize when the housing market busted. Now, they are doing flips and we able to get an PieTown show on HGTV about it:
http://www.pietown.tv/Shows/flipflop.html
http://www.hgtv.com/flip-or-flop/show/index.html

Saw a couple of episodes last night... makes me wonder where they got the funds to buy these homes at auction. They seem to be making about $50k per flip no matter the issues that come up... is it that easy?

I wonder if PieTown or HGTV is interested in a show called "3CWG Hunters"... or "FCB Style"?

my wife was watching this last night, the one in the santa ana historical section.  i fell asleep but told her to record it. ill probably watch it since its covers our local area.
 
irvinehomeowner said:
makes me wonder where they got the funds to buy these homes at auction.

From your link:

From paying cash, sight unseen, for a property at auction, through the hapless remodeling process, to the frantic sale, this young couple is putting everything they have into this venture, including the fortunes of their crazy parents and stepparents.

The trailer is copyrighted 2010.
 
But if they fell on hard times... where did they get the cash? They seem to be well to do... nice ride, and Christina doesn't look like she's slummin' it.
 
irvinehomeowner said:
SoCal said:
irvinehomeowner said:
They seem to be well to do... nice ride

His Honda Civic??
In the episodes I watched, they are driving a nice black SUV with huge chrome rims.

That's funny.  The real estate investor clubs that I attend have a lot of very successful flippers.  Most of them dress in jeans and have more of a blue collar look.  I've also never seen huge chrome rims in the parking lot.  Are you sure this show reflects REALITY?
 
I think Tarek looks blue collar (he only wears a suit during the Open House).

I don't think most of the HGTV shows reflect reality. There was an article about "House Hunters" I read where usually the home has already been purchased and they take the buyers to two other homes (for sale or not) just for the show.

And really, who can remodel and stage a home for an open house with only $2k (used to be $1k) like they do on "Designed To Sell"? I've seen them replace countertops and flooring on that budget... what?
 
I have a cousin that started bidding on storage units after watching too much Storage Wars.  He is hoping to make lots of money by doing as little work as possible.  So far he's still living with his parents.  LOL...

The successful flippers that I've met are hardworking, disciplined, and reasonably smart.  They are not a flashy crowd.  You have to run it like a business and work your ass off, especially to get established.  Not everybody has what it takes.  If you are good at timing the market, you can make some great money and become wealthy eventually. 
 
If it were easy, everyone would be doing it.  Making money requires hard work and luck.  My cousin who works in television likes to drink and party.  She invested in a bar which failed miserably, and a nightclub which also failed miserably.  Just because you like the bar scene doesn't mean you can run one successfully.  I hear people talk all the time about retiring, and running a bar in some exotic location.  That's not retiring.  It's work.
 
irvinehomeowner said:
Saw a couple of episodes last night... makes me wonder where they got the funds to buy these homes at auction. They seem to be making about $50k per flip no matter the issues that come up... is it that easy?
Yes it is.  Pretty much like the market in 2004/2005.  Buying anytime in the last year and half fixes all but the most egregious errors on flipping.  And the most egregious mistake is paying too much for the fixer.

It isn't easy because flipping is easy, it is easy because they're going with the flow, at the moment that flow for selling is like the santa ana riverchannel after a weekend of el nino rain.
 
qwerty said:
irvinehomeowner said:
I saw this article in the OC Register about a couple who are RE agents and had to downsize when the housing market busted. Now, they are doing flips and we able to get an PieTown show on HGTV about it:
http://www.pietown.tv/Shows/flipflop.html
http://www.hgtv.com/flip-or-flop/show/index.html

Saw a couple of episodes last night... makes me wonder where they got the funds to buy these homes at auction. They seem to be making about $50k per flip no matter the issues that come up... is it that easy?

I wonder if PieTown or HGTV is interested in a show called "3CWG Hunters"... or "FCB Style"?

my wife was watching this last night, the one in the santa ana historical section.  i fell asleep but told her to record it. ill probably watch it since its covers our local area.

I gave everyone the invite... you could've been IN the episode.http://www.talkirvine.com/index.php/topic,2844.msg42962.html#msg42962
 
tarekfliporflop said:
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?
 
irvinehomeowner said:
tarekfliporflop said:
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.
 
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

 
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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