Even when the El Moussa’s go tens of thousands of dollars over budget, and even when the neighborhood comps don’t remotely support their asking price on the house, they always seem to find someone to buy it at just the right amount so they make the profit they’re looking for. And it usually involves a lot of back and forth before an agreement is reached. Most successful house flippers will tell you they negotiate hard for every single dollar because every dollar you pay is a dollar less you make. Especially now that house flipping has become a popular hobby-profession. That’s not how it works in real life.įirst: it’s very hard to find a home that you can buy at a discount and then renovate and make enough money to make it worth your while.
The scene is always the same: they tour the house, they decide on a number that’s seemingly out of thin air, Tarek calls the representative for the house on speakerphone and within seconds a deal is made. That way you have a better idea of what the renovations are going to cost and whether you can make any money.
HGTV HOUSE FLIPPER PROFESSIONAL
It works for the El Moussa’s because it adds drama to the TV show, but most professional flippers will tell you that you want your contractor or a home inspector to tour the property before you buy. This is a big no-no when flipping houses. They can save you money by coming up with creative solutions and by catching serious structural issues before you even buy the home. If you’re going to be flipping professionally, it’s important to develop a good relationship with a contractor you trust. The El Moussa’s might operate in Orange County (a traditionally expensive area), but they buy in the less expensive towns, away from the beach. Even though they don’t seem to stick strictly to the budget, they choose to spend money on the upgrades they either have to make (because of city code) or the upgrades that will make the home competitive in the market. It will also ensure you don’t over-improve the house. Knowing your likely exit sales price based on the neighborhood comps is the best way to back into your offer price. The El Moussa’s know what their break-even sales price is and use it to guide their offer on the house.
Both had a background in real estate before they began to flip houses. The story: a married couple (now divorced) Tarek and Christina El Moussa buy houses that are falling apart, they renovate them, and then try to turn a profit.
HGTV HOUSE FLIPPER HOW TO
If you’re a Flip or Flop and Good Bones enthusiast, and they’ve got you thinking you might take a swing at this industry, here’s how to parse the fact from fiction. But shows like Flip or Flop and Good Bones make flipping houses look (relatively) easy, thus inspiring a whole generation of entrepreneurs.īut when we interviewed a couple who flips houses for a living-a couple with almost two decades of experience between them-they said there were parts where the shows got it wrong. HGTV is meant to be an escape and as such the shows most often have a happy ending. If this is the case, you should pay attention, because you can’t believe everything you see on TV. OR, you might watch to get tips for your next career as a house flipper. You might watch HGTV for entertainment, or to get ideas on your next DIY project.
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