The three women dumped months and a bunch of hours of their time and walked away maybe with $25k (probably less)? Total waste of their time. They were basically volunteer home renovators for what little money they made on it.
I’ve seen too many people loose on this. They watch hgtv and they make it seem easy. Home flipping is a business and takes knowledge and skill. And deep pockets.
The hardest thing for me to swallow is that they are tearing down, or completely changing starter homes to build these high dollar houses that are not affordable. And they wonder why more people are renting and these homes are sitting empty.
I love those ladies' outlook! They spend time together, learn a new trade, and, as she said, the money the made was icing on the top. They took somewhere that could have easily be a wasted or resented property and made it into a home. I wish them all the luck and fortune for their future ventures 😊
I worked for my step brother who was a house flipper in the summers and I'll say after only a few summers there are definitely some stories to tell. It is also quite cool working on a house and seeing it turn from a piece of crap into a decent home. For example, he acquired an abandoned home where the previous owner passed away from old age and no one claimed it so we got it and we found out the old man was a hoarder and had like 4 dogs so we had to move metric tons of crap out as well as redo everything inside. I found some really cool things that I ended up keeping that he collected over the years such as a Magnavok Odyssey that was still in its box and never opened in the 40+ years it had existed, some 1960s electronic illustrated magazines, and a 1960s-1970s original Star Wars 8-track
Hmm..I don't see it quite that strict. Everyone learns along the way. What I find more pivotal, is that they are learning, and propperly implementing what they've learned...along the way. So I guess I wouldn't buy any of their first few houses either, but perhaps like their 10th or so if they can show a good portfolio.
The house flipping craze is finally starting to hit my town, but instead of buying the truly disgusting, unlivable homes many are buying slightly outdated homes in a decent price range for first-time home-buyers and just giving them the generic, builder-grade makeover, then listing them for at least 30K above the neighborhood comps.
I live in a flip house. I rent it of course. The owner put over $100,000 into the property and could not sell it, so he had to rent it out. A lot of things are done half-ass way and very DIY. It is a very old house and despite all surface glossing still smells like an old butt :)))) I would never buy a property like this. But since the rent was only $50 more than my previous place, it's OK to rent, and the owner is not too bad to deal with.
Anna Gray that's what i worry about if i were to buy a flipped house: if the flipper did a half a$$ job to make it look good but things like termites, plumbing, shoddy electric , etc aren't as apparent. You can hire inspectors but they can only see so much. I would rather buy a house that needs work and have the work done by myself or someone i hire, rather than done by someone who was told "cheap as possible" or "cover it up". I am not a big fan of flippers. They take property that people would normally buy to fix up things gradually as they live in the house. This ends up artificially inflating property value, reducing affordable housing for people that actually want to be able to live somewhere nice/decent. Good for sellers, bad for buyers.
In this case, not good for sellers either :) as he could not sell it. There was virtually same size house down the street, where they had things done properly, and they sold it in 2 months. This one, he could not sell it for over 2 years. There are problems with plumbing, electricity, AC, old drywall full of pests, thin single-pane windows, very wet basement, no landscaping, old rusty fence, construction debris in the flower beds, and dude wanted $500K for all this paradise :) You are absolutely right that in already little available housing market flippers reduce it even more. I would exercise "if I would live there myself" approach, but flippers apparently don't.
@@wmurray003 Probably to try to get it up to par with houses in his neighborhood. It was probably worth less than 400k before the cheap improvements were made. In any case, it sounds like a lemon of a house.
Antonio...I like your videos they are very informative and I will continue to watch and encourage my son to watch he is in Florida. Stay Humble! Stephanie Plummer
my parents and i flipped our own home, we just did the destroying part, taking out the drywall and carpet, things we knew we could do, i fucked with the guys working on the house so hard, i was like 8yrs old, i would stand there and stare at them, and when they looked at me i would move a bit and repeat it
Flipping is nowhere near as easy or glamorous as it appears on TV. The TV personalities get a fat paycheck from the network, have their own dedicated contractors, and the time horizons are edited down drastically.
If you do this make sure you’re handy and have a lot of time in your hands or have plenty of disposable cash to hire all the people you’re going to need.
@@gfunk449 actually his makeovers are pretty successful. The rate of restaurants from his show that are closed is over 60% than the national average of restaurants that close within the first 5 years is at 80%.
Other consumers will be of the same opinion which will be reflected in the final sale value of the house. At the end of the video the property was listed for $42,000 less than they anticipated. I could tell just from the short clip shown that the renovations looks cheap and low-quality so I imagine that's why the price had to be slashed. Unfortunately, just because someone has the money to flip houses doesn't mean they have the taste and standards to do it properly.
People are still flipping houses this is so 90's that market sailed a long time ago. 150K cheap to flip for 500K no way anyone will finance this. The job market does not have these kinds of salaries to get these kind of mortgages this is unsustainable.
This is the problem in my area. I’m looking now. Not enough cheap houses to do the improvements needed to then resell cheap enough for people in the area to afford. $220k is the sweet spot. Hardly any houses for under $100k to fix up.
Amateur flippers almost never tell the real truth about the real bottom line. Most lose money, and those who do turn a profit end up working for minimum wage is they truly account for their time. They don't figure in the costs and risks of financing/carrying the loan until the house is sold, taxes, insurance, theft, vandalism, legal liability, etc., etc. In addition to knowing the local market inside and out, to make money flipping you have to be an excellent inspector, planner/estimator, and be knowledgeable about building codes, materials, and construction methods, etc. Flippers take huge risks based on the number of variables in play. Anyone taking out a 2nd mortgage on their own home, to get a mortgage on a flip is INSANE! Many flippers get themselves so leveraged that everything falls like a house of cards. The plethora of flipping/real estate investment books on the market has always been the domain of fools. If there were truly that much money to be made in flipping and if it were really that easy, they wouldn't be writing books about it. They'd be quietly keeping it to themselves and buying up everything they could get their hands on. If you want to learn flipping, get a job working for a renovator, or a successful flipper and learn everything you can. Like anything else, learn the business from the ground up.
My suspicion is that most successful flippers were and probably still are successful contractors.At least they should have a better idea of repair and labor cost.
I don't think flipping is as hard as you make it sound. Don't need to be an expert in the areas, this is why when you walk a house, you can take a contractor with you. At the end all I recommend to people wanting to flip is do it with cash!! See with Cash you don't have anything to worry about, worse case you can rent it out.
If you can’t sell the home you could rent it out. My family can do everything, electric, plumbing and carpentry and have redone a house. My grandpa even built his house himself. But heck no, flipping is way too much work and way too risky.
House flipping is almost always cheap, cheap, cheap. Cheap materials, cheap labor with the anticipation of a large pay day, if the rents in the area are low the tenants move in trash the place due to cheap materials. Move out then you're back to square one. Because they took out a mortgage on this place the rental is almost surely to be a failure. Rentals need a good cap rate, preferably 10% or more ROI per year... carrying a mortgage? not likely to be successful under those conditions. The number one thing outside of carrying a mortgage on a rental is turnover rate. The rate at which tenants leave property (typically in a mess) If tenants move in / move out each and every year this will destroy your cap rate / ROI.
I work at Home D and I know people that do this for a living they make around 30k average on each flipp is not bad for one person they also make around 7 to 12 flipps per year.
I've never flipped a house but I have helped family prepare houses for rent. It's the same concept except that the money goes towards upgrades, maintenance, and whatever is left is left aside for emergencies and to buy more properties. The idea is to purchase in locations that are likely to go up in value in the next 5-10 years. The rent money that can be re-invested gives you a better position. It's a much riskier market but it's a lot more relaxed because your goals are years away rather than weeks or months away like when you flip.
They get into a field where they can’t even do any of the work to save a buck and find out that 25,000 is a good win when the house was sitting empty for so long, if you want to make money on these flips learn how to do the work yourself to walk away with decent money in your pockets, I know I’ve been buying houses myself and doing the work on my own and walking away with good profits.
If you pay attention to those flipping tv shows you are very stupid , buy some books , learn how houses are built and what materials actually cost . Every job you can do yourself will save you thousands of dollars , contractors will rob you , nothing will make you better at a business then understanding it's elements and doing it with people you can trust .
Ben Dover RS Means Residential Cost books and Repair and Remodeling Books and your jurisdiction's residential code (usually the state one is good enough). These are more so references rather than books, but they are very handy if you dig through them to understand what you need to do and how much it will cost. The Code books are about $100, but I always check them out from the local library. The RS Means books are pretty pricey, but the older versions can also be available at the library, you will just need to account for inflation for how many years since the book has been released.
Didn't check for replies ,,a really good book is carpentry and building construction by john l feirer and two others. The book is almost 1000 pages covering virtually if not ever process of home construction. I personally learned from books and video's by a man named larry haun , if you youtube his name you can watch most of the video's i learned from for free. Just the video's online will give you a much better understanding of how your house was built and how to repair it .
the reason why you hire people people with papers is due to insurance. if for example you do it yourself or someone else is doing it and the house burn down then you wont get anything because it was your own fault.
I feel like also if you do decide to flip a house, it's always good to be there and describe what you want done on-site as well as spend a couple hours each day or so to visually inspect and walk around to point things out that you feel aren't up to standard or what you want. This ensures you're getting your money's worth of work with the contractors you hire to fix up the place. Keeps contractors from doing some parts half-assed because that's what I fear. Paying contractors a good amount of money for the work and they don't do it properly and then you have to get it fixed and it just keeps going.
For some reason people watch one episode of HGTV and they suddenly think they can flip houses my family’s been flipping houses for almost 20 years now, it’s not easy, you have to know people in the industry and build up a Portfolio.
I have seen plenty of flipped homes, and they are always done “on the cheap”. DJT flipped hundreds of homes in Philadelphia, received millions of $ from the government for providing low income housing in poor neighborhoods. One of the key things about doing that is you must have connections with cheap contractors, who are in cahoots with building inspectors.
@7:36, 25k divided by 3 is 8k per lady...that's a lot of house work-planning and building work for a little bit of money in the end to escape sudden failure (all the stress and sleepless nights). What Mark Bloom said was so true...it usually better to fix up the house just enough to match the current area and sell. The women that bought an old used 250k house just to tear it down and build a 950k new house (to sell) on the same lot are way-way over their heads in my opinion. I get the impression that women (are the risk takers) willing to take-on more risk than men would....does anyone else see it this way?
this isn't "flipping." flipping is when you get a property under contract and sell the contract to someone else. buying a junk house and fixing it up is called "rehabbing." but really, why would an end buyer want to buy some junk house that hasn't been properly maintained? a little new paint, new carpet, and landscaping doesn't make a property rehabbed. middle aged women who wouldn't know which end of a hammer to hold have NO businesses getting into rehabbing properties.
I got my first house paid cash and will do some remodeling my self i plan on living in it for a few years then try to sell it to use the money for a bigger house closer to the city
After searching for months for a house to renov and ultimately flip, and losing out to the competition in bidding wars in our county, we discovered a sweet spot. Look for houses advertised by realtors that are not local to your county. Realtors have to pay a fee for each county they do business in, so many stick to one county, usually the one they live in. When dealing with investors, they don't bother with the homes advertised by out of area realtors. If you dont mind doing your own negotiating and dealing with a long distance realtor, you can grab a great deal.
What they don't tell you: Uncle Sam takes a large chunk of your profit. The front-end is superficial work (the construction & cost), the back-end is more work: finding legal loop-holes, reliable accountants, making social connections with the right people, real estate agents, lawyers, contractors, pulling permits etc. A lot of the money gets sucked up if you aren't doing the paperwork and research on your own. The laws also differ from state to state.
Twenty-five thousand split three ways, and that's not including income tax. Wow, what a crappy way to make very little money. Bet it works out to way less than minimum wage once you take time into account. Those ladies need to stop watching flipping shows. Just looking at them, they're dressing all pretty with makeup and fancy shoes. All the women I know who work some sort of job in a typically masculine industry (like construction, auto repair, etc.) dress and act in a very masculine way. My guess is these ladies have no experience in construction or trades, and they thought it would be fun girl time. Clearly, they were in over their heads. By the way, I'm a female, so don't call me sexist. I'm just telling it like it is.
They claimed they did it to see if they could work together without killing one another, but profit wasn't really their motive. LOL. No one buys a property with intent to just learn something and make no money. If someone applied themselves in a professional job for the time this house just sat and sat and sat on the market, not including the months it likely took them to get the work done... $8k a piece is almost a certainty to be way less than minimum wage. Say it took them a total of 10 months from start to finish if they had got a $10 hour job at 40 hours a week they could have doubled their money at $16K working a $10 an hour job for the 10 months it probably took them to complete this. #financial crisis 101.
+AustinAirCo Yeah, I was thinking the same thing about the profit motive. Rather than admitting that they were stupid and failures, they tried to explain it away by saying that they weren't trying to make money. Yeah, sure. I don't know how the husbands went along with this financial disaster. They must be pussy-whipped or something.
flippers are under the gun to resell as time will erode their profits due to taxes and insurance payments coming due not to mention other hidden costs like HOA fees, yard maintenance etc. While they are in the process of trying to flip. If market becomes a buyer's market, flippers will eat the shirt off their own back. Plus closing costs not only to buy but also to sell, is very costly. If you don't know your numbers you might as well be the famous dolphin. At least that way you could swim away after your ship sinks.
I wish I had way more knowledge about purchasing property when I bought my first house at 27 years old. I bought my house to live in, but now I have health issues that prevent me from being able to just pick up & move. My house is a Sears house built in 1927 and has so much wrong with it, I am at a loss for what to do.
I’m so sorry, Mary. I’m 49 and my hubby and I decided when we got married 15 years ago not to buy for that reason. I like being about to pull up anchor and move where work is, be able to move out if need be for any reason. We invest in other ways for our retirement. We have never regretted our decision.
You could flip houses but you could own properties and rent them out. That's what I'm doing. My mortgage is going to be around $900 per month and the house will be rented out for around $1,400 per month. I don't have to pay for my mortgage and will get an extra $500 every month. I could either keep the money or put into the mortgage to pay it off faster which mean I will be getting $1,400 extra every month after its paid off.
I went to the flipping seminar that you hear about on the radio. It was the biggest over-hyped pile of misleading crap I have ever heard! All they wanted was the up front fee for finding you a "good" property to flip!
What those women said was true, if you're profit is only average $37K per house and always assume the lower with income taxes or business taxes on top you'd need 4-6 to be over 100K per year. So starting out you need to pick something very easy so you can work and do this on the side then build up a savings and experience.
Most don't look like it but they are. They have pubs that are older than your country in England. Ever heard of bricks and cement? Or "The Three Little Piggies" . I'm pretty sure the first two piggies had black lung. Sorry, don't mean to be so vicious. Just makes no sense to me what so ever. Americans look at houses as sort of kind of long term investments , but not really, cause you wouldn't wish that old house on your own kids. So they just think of them as something to sell in a few years. Gross. And nobody has the type of ""insulation"" you guys have. Fucking long term petri dish.
If I were looking for a house to purchase to live in like these houses in the video; and I bought one of those dilapidated houses; I definitely would have it completely destroyed; and have a new house built on the property.
7:39 these idiots really spent $208,000 on a house that's worth just $233,000. You have got to be kidding me. And after the 3 way split, that's only $8,300 /per person.
in Charlotte real estate is booming to the point only doctors,attorneys,ETC have a chance to buy a house and survive... i'm glad my wife and i got our property last year for $50k spent $20k and this moment is evaluated at $200k ... this is called real profit but we been working our asses for over a year in our home to get to the point our property is listed as the best in the neighborhood... but very Important we did EVERYTHING ourselves from a simple drywall all the way to replace the foundation ... no high heels/big nails/or makeup would survive in the real flipping house... just saying
I’ve always loved the idea of flipping my own home over many years, but I don’t trust flipped homes because they’re rushed and cheap. I’d rather take a cheaper home and turn it into my own dream home with quality and care.
If these ladies can't handle this flip... then this is not the industry for them... they are just interior decorators. That house was in fine condition. It just needed a bit of work. the more work the house needs(within reason), the more potential "sweat equity" you'll have on the front end.
Love the idea of cheap places for rentals BUT I never really got the flip thing. Seems like ultra high risk for ultra low reward. A really handy guy can buy himself a good job but he may be able to make more remodeling for someone else WITHOUT the huge risks. If you use cash, you might actually work hard and LOSE money. Even seasoned people can make more money doing other things. I don't even believe people using several contractors to get the job done. Seems VERY expensive way to do a remodel.
ARV 275,000 x .65 Repair 60,000 ( - ) Buy price should have been 120,000 at the most. But they paid 150K that’s not bueno that’s 30k cut on your profit
wow theyre women so awesome wtf dude thats epic so cool and smart and strong. lets see them do the renovation work themselves and not die from bodily shock from doing half the amount of work any man could do
Less than $9000 per person in profit. Not worth it for the work and stress that went into it. Also, they will have to pay short term capital gains tax on the profit.
I have flipped couple houses ad one thing people forget about is Uncle Sam. Your $25,000 profit will be taxed capital gain - 28% and I do believe Capital gain was lowered to about 20% in 2018 for properties held over a year.
Is it 28% or 30%? Whichever. I think if you hold for a year it gets cut in 1/2. That’s why I don’t understand their rush. The carrying costs can’t be worse then the tax implications. Every case is individual but on the whole.
They didn't make $25,000 they don't tell you about uncle sam.... I flip houses I can tell you I made a profit of $150,000 but I didn't I actually made $105,000.. Here in CA Uncle Sam took 30%...
Hippiearth420 lol thanks for the thorough response! Good to know. I guess that’s what a lot of smart flippers do. Must be a full time job. My goal is to rent out a place and make long-term, passive, tax-advantaged income
When ever I flip a house I go ABOVE and Beyond of anything they have ever seen before and up stage all the neighbors. Just remember don’t try to flip a home in a bad neighborhood you will be more than likely disappointed
Wow, those ladies put $60K into a renovation that at most should have been $25k? And they aren't brokers (assumed) so they lost $4,500 (3%) on the purchase and let's say they sold it for $250k, they lost another $7.5k on the sale. So assuming a professional with a broker's license bought for the same price as these amateurs (unlikely). The professional would spend $35k less on renovations and $12k less on commission. That's a swing of $47k or about the maximum profit potential this property had.
I have been a real estate appraiser for over forty years and the first rule of real estate investment is not just saying "location" three times. This is stupid. The first rule is to not pay too much to acquire the house in the first place. These idiots think that the amount of money that they should get is the price they paid for the house plus the cost of materials they put in, plus a profit. Again this is stupid if the person that sold you the property got you to pay too much for it. Most people that think they can "flip" a property, give away their profit to the person they bought the house from even before they started working on it. Even the word, "flip" is stupid and outdated. A flip iw when you buy a house, do nothing to it and just put it back on the market and sell it for more money than you paid for it. If you have to put money or work into it, it is a renovation, not a flip. .
These ladies are high af. I can grab properties under 20 all day. And what I do is gut em and build them and sell them cheap (because usually south side) is it rich quick? No but it's steady money that I can judge a steady increase. And I do employ friends, but with that upfront agreement. Just keep it simple, work steady and don't over reach and you can do fine in the game
I always have nightmares that I flip houses🏚 & squatters take over the home & move in & won't leave. I call the police & they tell me there is nothing they can do. It's a civil matter & there goes my investment.
I’ve wondered if people who like to watch shows on flipping or buying houses as much as I do go bat shit crazy when potential buyers complain about wallpaper and countertops. They will pass on a dated house with good bones that they can easily makeover, for some pressboard cookie cutter with Chinese drywall all because of nice counter tops and bowl sinks🤬🤬🤬. I know it sounds silly to get mad at strangers on TV but I can’t help it. Too many idiots with too much money...lol. Meanwhile I’m sitting here in my overpriced rental in Northern California with a slightly above pathetic credit score...bitching to my TV about how John and Jane Doe are spending their own money. Don’t judge me
The three women dumped months and a bunch of hours of their time and walked away maybe with $25k (probably less)? Total waste of their time. They were basically volunteer home renovators for what little money they made on it.
Lol dayum
take away 50% in taxes and you could of worked at mcdonalds and made more
Go flippers can do a job in 6-10 weeks. At that point, you make $25k in 2-3 months
Good*
They earned an education at the same time, plus first time flipping is rarely all wine and roses.
I’ve seen too many people loose on this. They watch hgtv and they make it seem easy. Home flipping is a business and takes knowledge and skill. And deep pockets.
The hardest thing for me to swallow is that they are tearing down, or completely changing starter homes to build these high dollar houses that are not affordable. And they wonder why more people are renting and these homes are sitting empty.
I love those ladies' outlook! They spend time together, learn a new trade, and, as she said, the money the made was icing on the top. They took somewhere that could have easily be a wasted or resented property and made it into a home. I wish them all the luck and fortune for their future ventures 😊
I worked for my step brother who was a house flipper in the summers and I'll say after only a few summers there are definitely some stories to tell. It is also quite cool working on a house and seeing it turn from a piece of crap into a decent home. For example, he acquired an abandoned home where the previous owner passed away from old age and no one claimed it so we got it and we found out the old man was a hoarder and had like 4 dogs so we had to move metric tons of crap out as well as redo everything inside. I found some really cool things that I ended up keeping that he collected over the years such as a Magnavok Odyssey that was still in its box and never opened in the 40+ years it had existed, some 1960s electronic illustrated magazines, and a 1960s-1970s original Star Wars 8-track
Nice!
" learning along the way " ... I'm not buying one of their houses. .
Hmm..I don't see it quite that strict. Everyone learns along the way. What I find more pivotal, is that they are learning, and propperly implementing what they've learned...along the way. So I guess I wouldn't buy any of their first few houses either, but perhaps like their 10th or so if they can show a good portfolio.
The house flipping craze is finally starting to hit my town, but instead of buying the truly disgusting, unlivable homes many are buying slightly outdated homes in a decent price range for first-time home-buyers and just giving them the generic, builder-grade makeover, then listing them for at least 30K above the neighborhood comps.
I live in a flip house. I rent it of course. The owner put over $100,000 into the property and could not sell it, so he had to rent it out. A lot of things are done half-ass way and very DIY. It is a very old house and despite all surface glossing still smells like an old butt :)))) I would never buy a property like this. But since the rent was only $50 more than my previous place, it's OK to rent, and the owner is not too bad to deal with.
Anna Gray that's what i worry about if i were to buy a flipped house: if the flipper did a half a$$ job to make it look good but things like termites, plumbing, shoddy electric , etc aren't as apparent. You can hire inspectors but they can only see so much. I would rather buy a house that needs work and have the work done by myself or someone i hire, rather than done by someone who was told "cheap as possible" or "cover it up". I am not a big fan of flippers. They take property that people would normally buy to fix up things gradually as they live in the house. This ends up artificially inflating property value, reducing affordable housing for people that actually want to be able to live somewhere nice/decent. Good for sellers, bad for buyers.
In this case, not good for sellers either :) as he could not sell it. There was virtually same size house down the street, where they had things done properly, and they sold it in 2 months. This one, he could not sell it for over 2 years. There are problems with plumbing, electricity, AC, old drywall full of pests, thin single-pane windows, very wet basement, no landscaping, old rusty fence, construction debris in the flower beds, and dude wanted $500K for all this paradise :) You are absolutely right that in already little available housing market flippers reduce it even more. I would exercise "if I would live there myself" approach, but flippers apparently don't.
...what is the value of the house 400k?? Why did he put 100K into it?
@@wmurray003 Probably to try to get it up to par with houses in his neighborhood. It was probably worth less than 400k before the cheap improvements were made. In any case, it sounds like a lemon of a house.
Flipping contributed to the housing disaster in the US circa 2008. I wouldn’t buy or even rent a flip.
Antonio...I like your videos they are very informative and I will continue to watch and encourage my son to watch he is in Florida.
Stay Humble!
Stephanie Plummer
I wouldnt want to buy a flipped home knowing it's prob cheap quality and a quick buck
Yeah that is true :D
That is not always the case.
my parents and i flipped our own home, we just did the destroying part, taking out the drywall and carpet, things we knew we could do, i fucked with the guys working on the house so hard, i was like 8yrs old, i would stand there and stare at them, and when they looked at me i would move a bit and repeat it
You get what you pay for! & what do you care if they make a quick buck? Anytime you buy anything someone makes money especially uncle Sam.
DG but you wouldn know right if it was flipped?
Flipping is nowhere near as easy or glamorous as it appears on TV. The TV personalities get a fat paycheck from the network, have their own dedicated contractors, and the time horizons are edited down drastically.
Its not flipping if you tear it down and rebuild a new house
Shayla Davis
That might be what we have to do with the property we invested in. What a shame.
If you do this make sure you’re handy and have a lot of time in your hands or have plenty of disposable cash to hire all the people you’re going to need.
My dad did this years ago... successfully. I learned a lot from him.
All business is risky, if you're successful.
EpyonRoyal And you have to be lucky too .
EpyonRoyal That is the most not true statement I've ever come across on youtube.
At 6:55, just how is that a "successful" open house if they don't have any offers yet?
Jeff A lot of interest but no one Bit
About as successful as a Gordon Ramsay Kitchen Nightmare makeover. Which is mostly not.
@@gfunk449 actually his makeovers are pretty successful. The rate of restaurants from his show that are closed is over 60% than the national average of restaurants that close within the first 5 years is at 80%.
I expected them to physically flip the house.
Same here :)
Click bait!!!!
I would just worry that a flip house is done poorly and cheaply. A house that was renovated and lived in is a better bet.
Other consumers will be of the same opinion which will be reflected in the final sale value of the house. At the end of the video the property was listed for $42,000 less than they anticipated. I could tell just from the short clip shown that the renovations looks cheap and low-quality so I imagine that's why the price had to be slashed. Unfortunately, just because someone has the money to flip houses doesn't mean they have the taste and standards to do it properly.
People are still flipping houses this is so 90's that market sailed a long time ago. 150K cheap to flip for 500K no way anyone will finance this. The job market does not have these kinds of salaries to get these kind of mortgages this is unsustainable.
This is the problem in my area. I’m looking now. Not enough cheap houses to do the improvements needed to then resell cheap enough for people in the area to afford. $220k is the sweet spot. Hardly any houses for under $100k to fix up.
Amateur flippers almost never tell the real truth about the real bottom line. Most lose money, and those who do turn a profit end up working for minimum wage is they truly account for their time. They don't figure in the costs and risks of financing/carrying the loan until the house is sold, taxes, insurance, theft, vandalism, legal liability, etc., etc. In addition to knowing the local market inside and out, to make money flipping you have to be an excellent inspector, planner/estimator, and be knowledgeable about building codes, materials, and construction methods, etc. Flippers take huge risks based on the number of variables in play. Anyone taking out a 2nd mortgage on their own home, to get a mortgage on a flip is INSANE! Many flippers get themselves so leveraged that everything falls like a house of cards. The plethora of flipping/real estate investment books on the market has always been the domain of fools. If there were truly that much money to be made in flipping and if it were really that easy, they wouldn't be writing books about it. They'd be quietly keeping it to themselves and buying up everything they could get their hands on. If you want to learn flipping, get a job working for a renovator, or a successful flipper and learn everything you can. Like anything else, learn the business from the ground up.
My suspicion is that most successful flippers were and probably still are successful contractors.At least they should have a better idea of repair and labor cost.
I don't think flipping is as hard as you make it sound. Don't need to be an expert in the areas, this is why when you walk a house, you can take a contractor with you. At the end all I recommend to people wanting to flip is do it with cash!! See with Cash you don't have anything to worry about, worse case you can rent it out.
I wish these brave women goodluck !!! seriously !!! they are very brave! especially the 2 sisters and 1 friend .. they seem to be having alot of fun
if you took out a mortgage to get another mortgage ... you're dreaming if you think your making money
There's people that did that and have built up huge property empires.
Pulling equity out on a house you already own is one of the top ways of financing for the next property.
Matthew Smith I agree with you .
Mortgage? LOL -Morgage
If the market's about to appreciate, then it a whole lotta makes sense. If it's going nowhere, then good luck.
If you can’t sell the home you could rent it out. My family can do everything, electric, plumbing and carpentry and have redone a house. My grandpa even built his house himself. But heck no, flipping is way too much work and way too risky.
House flipping is almost always cheap, cheap, cheap. Cheap materials, cheap labor with the anticipation of a large pay day, if the rents in the area are low the tenants move in trash the place due to cheap materials. Move out then you're back to square one. Because they took out a mortgage on this place the rental is almost surely to be a failure. Rentals need a good cap rate, preferably 10% or more ROI per year... carrying a mortgage? not likely to be successful under those conditions. The number one thing outside of carrying a mortgage on a rental is turnover rate. The rate at which tenants leave property (typically in a mess) If tenants move in / move out each and every year this will destroy your cap rate / ROI.
So after 4 months on the market they make 25K profit and split it 3 ways, that just a smudge over 2k per month. Not really worth it as an investment.
I work at Home D and I know people that do this for a living they make around 30k average on each flipp is not bad for one person they also make around 7 to 12 flipps per year.
These woman lost money after sale commission, taxes and time.
I hate wood houses ! you hear everything there ! Give me a brick and concrete house any day.
. why should anyone give you anything ?
it's wayyyyyy cheaper than shipping stone 1000 miles
Not if you are a genius.
bubu mic You absolutely right brick and concrete is the house not timber.
Wood is better at withstanding earthquakes lmao
I've never flipped a house but I have helped family prepare houses for rent. It's the same concept except that the money goes towards upgrades, maintenance, and whatever is left is left aside for emergencies and to buy more properties. The idea is to purchase in locations that are likely to go up in value in the next 5-10 years. The rent money that can be re-invested gives you a better position. It's a much riskier market but it's a lot more relaxed because your goals are years away rather than weeks or months away like when you flip.
Keep at it ladies. You'll be tearing each other's hair out soon enough.
@Jennifer Miley Let us all take a wild guess. You're obsessed with the word penis, yet probably live alone and have 10 cats.
They get into a field where they can’t even do any of the work to save a buck and find out that 25,000 is a good win when the house was sitting empty for so long, if you want to make money on these flips learn how to do the work yourself to walk away with decent money in your pockets, I know I’ve been buying houses myself and doing the work on my own and walking away with good profits.
Good show!
If you pay attention to those flipping tv shows you are very stupid , buy some books , learn how houses are built and what materials actually cost . Every job you can do yourself will save you thousands of dollars , contractors will rob you , nothing will make you better at a business then understanding it's elements and doing it with people you can trust .
Just out of curiosity, do you have any suggestions for books?
Ben Dover RS Means Residential Cost books and Repair and Remodeling Books and your jurisdiction's residential code (usually the state one is good enough). These are more so references rather than books, but they are very handy if you dig through them to understand what you need to do and how much it will cost. The Code books are about $100, but I always check them out from the local library. The RS Means books are pretty pricey, but the older versions can also be available at the library, you will just need to account for inflation for how many years since the book has been released.
Wind ignorant u mean?
Didn't check for replies ,,a really good book is carpentry and building construction by john l feirer and two others. The book is almost 1000 pages covering virtually if not ever process of home construction. I personally learned from books and video's by a man named larry haun , if you youtube his name you can watch most of the video's i learned from for free. Just the video's online will give you a much better understanding of how your house was built and how to repair it .
the reason why you hire people people with papers is due to insurance. if for example you do it yourself or someone else is doing it and the house burn down then you wont get anything because it was your own fault.
so many rookies...so few professionals
The news is making it sound like they are gambling when they say “putting family finances on the line”
I feel like also if you do decide to flip a house, it's always good to be there and describe what you want done on-site as well as spend a couple hours each day or so to visually inspect and walk around to point things out that you feel aren't up to standard or what you want. This ensures you're getting your money's worth of work with the contractors you hire to fix up the place. Keeps contractors from doing some parts half-assed because that's what I fear. Paying contractors a good amount of money for the work and they don't do it properly and then you have to get it fixed and it just keeps going.
those three women better have good paying full time jobs cause the house flipping isn't gonna pay the bills
Doc's wife.
I did the math. 25,000 spilt 3 ways is about 8,300 for each person. That was a waste.
🤣😂🤣 math with modern day Albert Einstein!!
That big house looked nice 👍🏼
For some reason people watch one episode of HGTV and they suddenly think they can flip houses my family’s been flipping houses for almost 20 years now, it’s not easy, you have to know people in the industry and build up a Portfolio.
Great story!
Im watching this as my house has upside down baseboards as crown molding
I have seen plenty of flipped homes, and they are always done “on the cheap”. DJT flipped hundreds of homes in Philadelphia, received millions of $ from the government for providing low income housing in poor neighborhoods. One of the key things about doing that is you must have connections with cheap contractors, who are in cahoots with building inspectors.
@7:36, 25k divided by 3 is 8k per lady...that's a lot of house work-planning and building work for a little bit of money in the end to escape sudden failure (all the stress and sleepless nights). What Mark Bloom said was so true...it usually better to fix up the house just enough to match the current area and sell. The women that bought an old used 250k house just to tear it down and build a 950k new house (to sell) on the same lot are way-way over their heads in my opinion. I get the impression that women (are the risk takers) willing to take-on more risk than men would....does anyone else see it this way?
Accuracy Marked What they learned in that time though was invaluable, it was an investment in an important education.
That tear down group of woman seems like a pro.
this isn't "flipping." flipping is when you get a property under contract and sell the contract to someone else. buying a junk house and fixing it up is called "rehabbing." but really, why would an end buyer want to buy some junk house that hasn't been properly maintained? a little new paint, new carpet, and landscaping doesn't make a property rehabbed. middle aged women who wouldn't know which end of a hammer to hold have NO businesses getting into rehabbing properties.
I got my first house paid cash and will do some remodeling my self i plan on living in it for a few years then try to sell it to use the money for a bigger house closer to the city
After searching for months for a house to renov and ultimately flip, and losing out to the competition in bidding wars in our county, we discovered a sweet spot. Look for houses advertised by realtors that are not local to your county. Realtors have to pay a fee for each county they do business in, so many stick to one county, usually the one they live in. When dealing with investors, they don't bother with the homes advertised by out of area realtors. If you dont mind doing your own negotiating and dealing with a long distance realtor, you can grab a great deal.
What they don't tell you: Uncle Sam takes a large chunk of your profit.
The front-end is superficial work (the construction & cost), the back-end is more work: finding legal loop-holes, reliable accountants, making social connections with the right people, real estate agents, lawyers, contractors, pulling permits etc. A lot of the money gets sucked up if you aren't doing the paperwork and research on your own. The laws also differ from state to state.
No money down means taking out your 401 k or Early Retirement or borrowing. The money comes from somewhere.
Twenty-five thousand split three ways, and that's not including income tax. Wow, what a crappy way to make very little money. Bet it works out to way less than minimum wage once you take time into account. Those ladies need to stop watching flipping shows. Just looking at them, they're dressing all pretty with makeup and fancy shoes. All the women I know who work some sort of job in a typically masculine industry (like construction, auto repair, etc.) dress and act in a very masculine way. My guess is these ladies have no experience in construction or trades, and they thought it would be fun girl time. Clearly, they were in over their heads. By the way, I'm a female, so don't call me sexist. I'm just telling it like it is.
They claimed they did it to see if they could work together without killing one another, but profit wasn't really their motive. LOL. No one buys a property with intent to just learn something and make no money. If someone applied themselves in a professional job for the time this house just sat and sat and sat on the market, not including the months it likely took them to get the work done... $8k a piece is almost a certainty to be way less than minimum wage. Say it took them a total of 10 months from start to finish if they had got a $10 hour job at 40 hours a week they could have doubled their money at $16K working a $10 an hour job for the 10 months it probably took them to complete this. #financial crisis 101.
+AustinAirCo Yeah, I was thinking the same thing about the profit motive. Rather than admitting that they were stupid and failures, they tried to explain it away by saying that they weren't trying to make money. Yeah, sure. I don't know how the husbands went along with this financial disaster. They must be pussy-whipped or something.
hamsterama
Flippers don't flip 1 home per year. Even if you only do like 10 per year, you can make like $100,000-S200,000 net.
flippers are under the gun to resell as time will erode their profits due to taxes and insurance payments coming due not to mention other hidden costs like HOA fees, yard maintenance etc. While they are in the process of trying to flip. If market becomes a buyer's market, flippers will eat the shirt off their own back. Plus closing costs not only to buy but also to sell, is very costly. If you don't know your numbers you might as well be the famous dolphin. At least that way you could swim away after your ship sinks.
Please someone give this Female a Beer and lets talk business ... she knows whats she's saying... AGREED 200%
I wish I had way more knowledge about purchasing property when I bought my first house at 27 years old. I bought my house to live in, but now I have health issues that prevent me from being able to just pick up & move. My house is a Sears house built in 1927 and has so much wrong with it, I am at a loss for what to do.
I’m so sorry, Mary. I’m 49 and my hubby and I decided when we got married 15 years ago not to buy for that reason. I like being about to pull up anchor and move where work is, be able to move out if need be for any reason. We invest in other ways for our retirement. We have never regretted our decision.
hahaha " eric" Better to remain silent and be thought a fool than to speak and to remove all doubt.
You could flip houses but you could own properties and rent them out. That's what I'm doing. My mortgage is going to be around $900 per month and the house will be rented out for around $1,400 per month. I don't have to pay for my mortgage and will get an extra $500 every month. I could either keep the money or put into the mortgage to pay it off faster which mean I will be getting $1,400 extra every month after its paid off.
Its definitely not for the faint of heart. You have to be prepared for anything!
1:52 I love that house. 😍
Good job
I went to the flipping seminar that you hear about on the radio. It was the biggest over-hyped pile of misleading crap I have ever heard! All they wanted was the up front fee for finding you a "good" property to flip!
What those women said was true, if you're profit is only average $37K per house and always assume the lower with income taxes or business taxes on top you'd need 4-6 to be over 100K per year. So starting out you need to pick something very easy so you can work and do this on the side then build up a savings and experience.
A lot of work went in for $25,000 split 3 ways! but a very good learning experience...
All American houses look like mouldy kindelling.
My May
all?
Most don't look like it but they are. They have pubs that are older than your country in England. Ever heard of bricks and cement? Or "The Three Little Piggies" . I'm pretty sure the first two piggies had black lung. Sorry, don't mean to be so vicious. Just makes no sense to me what so ever. Americans look at houses as sort of kind of long term investments , but not really, cause you wouldn't wish that old house on your own kids. So they just think of them as something to sell in a few years. Gross. And nobody has the type of ""insulation"" you guys have. Fucking long term petri dish.
I work for a surveyor I don't understand how a over grown yard could make a surveyor not know where the line is ?
3:36 They're amazing.
From 240k to 950k. I'm guessing this had some contribution to the current state of the housing market being unaffordable
Are they flipping it to a quality home or just cheap fly night job?
My mom got out of a marriage and Started flipping houses and Is doing great! You need a keen eye and a lot of heart but it can be done! GO MOM
I saw this already it's the same video from like 2 months ago
I've started this. I have 2 houses and am looking for the 3rd. It doesn't mean I'm rich tho.
everyones a flipper here in Australia people here think if u renovate a bathroom it add's over $100 000 to the property
very interesting!
If I bought a FLIPPED house, I would have to enter through the roof!
If I were looking for a house to purchase to live in like these houses in the video; and I bought one of those dilapidated houses; I definitely would have it completely destroyed; and have a new house built on the property.
7:39 these idiots really spent $208,000 on a house that's worth just $233,000. You have got to be kidding me. And after the 3 way split, that's only $8,300 /per person.
LoL...this is funny to watch in 2021 with this market
Never trust those flip agent, they will never You the truth about the history of the house!
in Charlotte real estate is booming to the point only doctors,attorneys,ETC have a chance to buy a house and survive... i'm glad my wife and i got our property last year for $50k spent $20k and this moment is evaluated at $200k ... this is called real profit but we been working our asses for over a year in our home to get to the point our property is listed as the best in the neighborhood... but very Important we did EVERYTHING ourselves from a simple drywall all the way to replace the foundation ... no high heels/big nails/or makeup would survive in the real flipping house... just saying
I’ve always loved the idea of flipping my own home over many years, but I don’t trust flipped homes because they’re rushed and cheap. I’d rather take a cheaper home and turn it into my own dream home with quality and care.
Where or what state is this in? Those home prices are insane and a money hole.
That house has termites!
Lmao, is that dubstep in the background?
If these ladies can't handle this flip... then this is not the industry for them... they are just interior decorators. That house was in fine condition. It just needed a bit of work. the more work the house needs(within reason), the more potential "sweat equity" you'll have on the front end.
Love the idea of cheap places for rentals BUT I never really got the flip thing. Seems like ultra high risk for ultra low reward.
A really handy guy can buy himself a good job but he may be able to make more remodeling for someone else WITHOUT the huge risks.
If you use cash, you might actually work hard and LOSE money. Even seasoned people can make more money doing other things. I don't even believe people using several contractors to get the job done. Seems VERY expensive way to do a remodel.
ARV 275,000 x .65
Repair 60,000 ( - )
Buy price should have been 120,000 at the most. But they paid 150K that’s not bueno that’s 30k cut on your profit
wow theyre women so awesome wtf dude thats epic so cool and smart and strong. lets see them do the renovation work themselves and not die from bodily shock from doing half the amount of work any man could do
Home buyers themselves are very smart too
Don't ever believe anything that real estate agent promise you what you going to get for house.
Less than $9000 per person in profit. Not worth it for the work and stress that went into it. Also, they will have to pay short term capital gains tax on the profit.
You can get a 150 thousand that’s nice asf where I live a cheap house would be around 90
I have flipped couple houses ad one thing people forget about is Uncle Sam. Your $25,000 profit will be taxed capital gain - 28% and I do believe Capital gain was lowered to about 20% in 2018 for properties held over a year.
Is it 28% or 30%? Whichever. I think if you hold for a year it gets cut in 1/2. That’s why I don’t understand their rush. The carrying costs can’t be worse then the tax implications. Every case is individual but on the whole.
Did anyone else notice that his gun jammed? The thing didn't go fully into battery.
They didn't make $25,000 they don't tell you about uncle sam.... I flip houses I can tell you I made a profit of $150,000 but I didn't I actually made $105,000.. Here in CA Uncle Sam took 30%...
Hippiearth420 if you put your profits into another property it isn’t taxed? Can you clarify
Hippiearth420 lol thanks for the thorough response! Good to know. I guess that’s what a lot of smart flippers do. Must be a full time job. My goal is to rent out a place and make long-term, passive, tax-advantaged income
Good to know... THxs
Liar
NYCTony G
It’s everything...
The guy with the blue tie reminds me of the decorator off of the movie beetlejuice..
You go girls!!!
lol
Wish I could find a 150k 3 bedroom house... something like that goes for 325k here now. Sigh.
When ever I flip a house I go ABOVE and Beyond of anything they have ever seen before and up stage all the neighbors. Just remember don’t try to flip a home in a bad neighborhood you will be more than likely disappointed
Wow, those ladies put $60K into a renovation that at most should have been $25k? And they aren't brokers (assumed) so they lost $4,500 (3%) on the purchase and let's say they sold it for $250k, they lost another $7.5k on the sale. So assuming a professional with a broker's license bought for the same price as these amateurs (unlikely). The professional would spend $35k less on renovations and $12k less on commission. That's a swing of $47k or about the maximum profit potential this property had.
Are they selling one house every month?
I have been a real estate appraiser for over forty years and the first rule of real estate investment is not just saying "location" three times. This is stupid. The first rule is to not pay too much to acquire the house in the first place. These idiots think that the amount of money that they should get is the price they paid for the house plus the cost of materials they put in, plus a profit. Again this is stupid if the person that sold you the property got you to pay too much for it. Most people that think they can "flip" a property, give away their profit to the person they bought the house from even before they started working on it. Even the word, "flip" is stupid and outdated. A flip iw when you buy a house, do nothing to it and just put it back on the market and sell it for more money than you paid for it. If you have to put money or work into it, it is a renovation, not a flip. .
It’s easier to flip houses if you have connections such as construction companies and carpenters
Like many things, the money is made on the buy side.
These ladies are high af. I can grab properties under 20 all day. And what I do is gut em and build them and sell them cheap (because usually south side) is it rich quick? No but it's steady money that I can judge a steady increase. And I do employ friends, but with that upfront agreement. Just keep it simple, work steady and don't over reach and you can do fine in the game
I always have nightmares that I flip houses🏚 & squatters take over the home & move in & won't leave. I call the police & they tell me there is nothing they can do. It's a civil matter & there goes my investment.
I would never buy a flipped house
I’ve wondered if people who like to watch shows on flipping or buying houses as much as I do go bat shit crazy when potential buyers complain about wallpaper and countertops. They will pass on a dated house with good bones that they can easily makeover, for some pressboard cookie cutter with Chinese drywall all because of nice counter tops and bowl sinks🤬🤬🤬. I know it sounds silly to get mad at strangers on TV but I can’t help it. Too many idiots with too much money...lol. Meanwhile I’m sitting here in my overpriced rental in Northern California with a slightly above pathetic credit score...bitching to my TV about how John and Jane Doe are spending their own money. Don’t judge me