Flip or Flop

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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.
 
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?

tarekfliporflop said:
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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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.
 
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)?
 
SoCal said:
USCTrojanCPA said:
Also, who do you use to list your properties (do you list it yourself)?
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Pssst. The listing agent name section on 114 Coral Rose should help.
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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.
 
tarekfliporflop said:
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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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.
 
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......
 
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...
 
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?
 
Only had time to watch the Anaheim Hills episode... how were you able to get homeowner's insurance on a house you just bought on auction?

That was a good idea to turn the downstairs den into a 4th bedroom but I don't think I would have went with a closet that spanned the entire width of the room... just something in the corner so that you don't make the room too small and you also don't block off the electrical outlet.

That contractor you used seem reasonable.... was that before you started using Battres?

I still think the auction part is staged... I'm not doubting you bought the homes at auction, but to be able to film a live auction would have some issues with people giving their permission to be on TV etc etc.
 
irvinehomeowner said:
I still think the auction part is staged... I'm not doubting you bought the homes at auction, but to be able to film a live auction would have some issues with people giving their permission to be on TV etc etc.
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There's numerous live auctions that appear on TV like Barrett-Jackson and Baggage Battles.  I wouldn't expect the handling of legalities with taping auctions on Flip or Flop would be much different or any more difficult.
 
Yellowneck4NASCAR said:
irvinehomeowner said:
I still think the auction part is staged... I'm not doubting you bought the homes at auction, but to be able to film a live auction would have some issues with people giving their permission to be on TV etc etc.
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There's numerous live auctions that appear on TV like Barrett-Jackson and Baggage Battles.  I wouldn't expect the handling of legalities with taping auctions on Flip or Flop would be much different or any more difficult.
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I'm not sure those are comparable.

Bidding on items that are hundreds of thousands of dollars, the presence of a film crew is intrusive and could disrupt the bidding process. And because the number of people bidding is small and the camera work does close-ups, privacy concerns come into play here. There can also be issues with production, footage and scene editing etc.

You can Google about the auctions for "Storage Wars" and read about how they are staged.

Again, I'm not saying that they didn't purchase these homes at an auction, but the actual auction event is something that they might have to stage for the show (which is understandable). I've never been to the auctions on the courthouse steps, but some members here have (although they may no longer be active) and can tell us what the experience is like and if it's similar to the show. I also say this because one of the bidders in one of the episodes I recognized and their actions looked "staged".
 
And I'm not trying to give anyone a hard time... it's just curiosity... television stages many things. For instance, an OC Food Truck had to go to LA because Guy Fieri was over there but they made it seem like it was still in OC. They even have a Guy Fieri hand model stand-in to film close up scenes when he's not around.
 
I agree a lot of TV shows are staged, I have a friend who was an extra on a "supposed" reality show but it was all staged.
The entertainment industry interests me too, I have a few friends in the industry.  I'm always curious about "how did they do that?".
 
nosuchreality said:
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.
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I disagree with almost all your comments here.  You don't have to start out full time to flip houses.  Most people don't start full time, because they are learning the business.  The person from the show stated that he started with a just a few flips per year.  His partner was full time in mortgages and investing in deals on the side. 

My point about "lovin' it" was that money gets people interested in flipping, but that's not enough to be successful, which is why more people aren't doing it full time.  The people I've met successfully flipping homes for years, eat, breathe, and sleep real estate.  They are addicted to it and wouldn't quit no matter how much money they accumulate.
 
irvinehomeowner said:
Only had time to watch the Anaheim Hills episode... how were you able to get homeowner's insurance on a house you just bought on auction?
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Yea, I'm really curious about that too.  I'm also kind of curious why they would pay for pre-existing damage?  Was wondering if it was a like a home warranty thing you can get when you buy.

I thought the construction guy did an incredible amount of work for $44,000?  ($29K plus the $15K from the insurance).  Nice kitchen rehab for $10K including appliances. 

I'm assuming the windows were all able to just replace glass panes?

Liar Loan said:
nosuchreality said:
<snip>
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.
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<snip>
My point about "lovin' it" was that money gets people interested in flipping, but that's not enough to be successful, which is why more people aren't doing it full time.  The people I've met successfully flipping homes for years, eat, breathe, and sleep real estate.  They are addicted to it and wouldn't quit no matter how much money they accumulate.
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Liar, aren't we basically saying the same thing?
 
My DVR cut out the end of the Cypress home episode.

They bought it for $490k(?) put in some money for remodel, mold remediation and repairs and listed it for $749k. At the Open House, everyone said it was too high and they lowered it to $699k. But that's when my recording stopped.

What did they end up selling it for? This one looked to make them more than their $20k or so they had been making on the other flops.
 
Hi Everyone,

We ended up selling the house in Cypress for $675,000.00 after 30 more days on the market.  The first offer we received was $735,000 but the buyer backed out.  In the end, everything worked out!
 
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