irvinerealtor
Well-known member
+1SoCal said:
Flip or Flop
- Thread starter irvinehomeowner
- Start date
NEW -> Contingent Buyer Assistance Program
Found it, looks like another 6 month hold. It's for sale again. I recall them slapping up a numbers rundown, it's like Purchase, Reno, Closing Costs (staging, commissions their broker's share? buyer agent share, etc.)
I recall from another episode he said they're splitting 50/50 with their investor. That's still good money, looking like about a $30K for each on a 6 month hold, call it 20% annual. Not clear if they're raking the seller agent cut for themselves, their closing costs look a little low to be doing that.
I'll have to build a rolling chart they've got at least six in the pipe probably more at any given time. IMHO, that's an interesting episode. So me a week in the biz. Scout prop #0A, #0b, #0C ... 0Z, bid prop#1, plan rehab & start demo prop #2, Contractor discussion props #3, #4, #5, staging prop #6, escrow close prop #7
Isn't this what Larry's Superfund was doing? Buying properties for flip and rental income?
I should convince some FCB to let me use his suitcase to start up "Irvine Flips Inc.".
But now that I think about it, any *good* realtor should be able to line up financial backing if they really wanted to... or maybe Tarek just makes it look too easy.
I think he covered that earlier. He has a friend that obviously has deep pockets. The friend supplies the cash (by the looks of it, $1+ million) and he and wife supply the sweat equity of bird dogging everybody and selling it.
The Double Trouble episode in Garden Grove shows you the investor, it was early, Q1-12 so still new and investor had some pretty short strings on them at that time. I see in an upcoming episode Tarek ask mom for the money so maybe he cuts the investor loose or it's a really early episode.
As for being easy, the two episodes from last week make it pretty clear they did well, but in a weaker housing market, I doubt they would have broken even. Without the bidding war and the run up in prices before it, they'd have been upside down.
I think there is overlap in knowledge and skill sets and they are not "entirely different" (which is why I think flippers like Tarek, are also realtors).
irvinehomeowner
Well-known member
I confess... I'm really Tarek.SoCal said:
nosuchreality
Well-known member
The first episode was Anaheim hills, the property was bought at the end of 2011 and sold in spring 2012, the Cypress house was bought late summer 2012 and sold end of year 2012. I'm assuming they're book ending basically a year of production and the next several episodes will be the ones in between.
So far, IMHO, 3 out of 5 stars. Too much is getting glossed over.
So far, IMHO, 3 out of 5 stars. Too much is getting glossed over.
irvinehomeowner
Well-known member
I saw another show that was similar on HGTV last night, Flip It To Win It.
It's kind of set up like Storage Wars where it follows 6(?) pairs of flippers who bid at the courthouse steps on 3 homes and then shows there results. Since only have of the teams will get the 3 homes, it's interesting to compare and contrast their styles. One thing I saw that was new was one team lost a bid to someone who wasn't on the show but after the auction approached him in the parking lot and asked to the home from him for x amount over his bid. They ended up negotiating $10k over his bid (they had a term for it... but I forgot what is was)... they probably could have got it less if they kept bidding, and if the guy was a flipper he could have made more, but $10k for 30 minutes of his time isn't bad.
The show looks to be based in NorCal and two flips were in the $300k range selling for about $400k to $500k but the third house was a home in Las Gatos and was bought at auction for $1.21m, gutted and remodeled for about $300k and I think they sold it $2.2-3mil... almost $800k profit.
It's an hour-long show and because they are profiling 3 homes, you see less of the problems, remodels and open house... but it is interesting.
I like Flip Or Flop better because it's local and it seems like you get a bit more of what's going on since they are focusing on only 1 house for the half hour.
It's kind of set up like Storage Wars where it follows 6(?) pairs of flippers who bid at the courthouse steps on 3 homes and then shows there results. Since only have of the teams will get the 3 homes, it's interesting to compare and contrast their styles. One thing I saw that was new was one team lost a bid to someone who wasn't on the show but after the auction approached him in the parking lot and asked to the home from him for x amount over his bid. They ended up negotiating $10k over his bid (they had a term for it... but I forgot what is was)... they probably could have got it less if they kept bidding, and if the guy was a flipper he could have made more, but $10k for 30 minutes of his time isn't bad.
The show looks to be based in NorCal and two flips were in the $300k range selling for about $400k to $500k but the third house was a home in Las Gatos and was bought at auction for $1.21m, gutted and remodeled for about $300k and I think they sold it $2.2-3mil... almost $800k profit.
It's an hour-long show and because they are profiling 3 homes, you see less of the problems, remodels and open house... but it is interesting.
I like Flip Or Flop better because it's local and it seems like you get a bit more of what's going on since they are focusing on only 1 house for the half hour.
nosuchreality
Well-known member
Caught the earlier two episodes last night, Whittier and La Mirada.
Good info on the lead paint disposal. I'd have never guessed $12K for a small bungalow. Seems like you should be able to get a better price than that since I think you can do asbestos for less than that.
In both cases, IMHO, the hot running market saved them. The La Mirada house sold in December, total hold time was six months. Can't find the Whittier house, I must remember the pricing wrong.
Good info on the lead paint disposal. I'd have never guessed $12K for a small bungalow. Seems like you should be able to get a better price than that since I think you can do asbestos for less than that.
In both cases, IMHO, the hot running market saved them. The La Mirada house sold in December, total hold time was six months. Can't find the Whittier house, I must remember the pricing wrong.
irvinehomeowner
Well-known member
From what I remember, Whittier was $320k closing, it was higher than comps but it also had a back house the owner can use for rental.
Haven't seen La Mirada yet.
Haven't seen La Mirada yet.
nosuchreality
Well-known member
IHO, refresh my memory, I deleted the episode. What were their numbers on that again? Bought, reno, closing, etc?
irvinehomeowner
Well-known member
Ack... can't remember exactly, bought around $180k, $30k reno, $12k lead, $3-4k misc (travertine, open hall, demo patio shed)... I recall them saying they had to sell for $255k to break even, but they made $66k.
They listed for $299k with comps in the mid $200k but got 12 offers and settled with the $320k offer.
They listed for $299k with comps in the mid $200k but got 12 offers and settled with the $320k offer.
nosuchreality
Well-known member
irvinehomeowner said:
Found it, looks like another 6 month hold. It's for sale again. I recall them slapping up a numbers rundown, it's like Purchase, Reno, Closing Costs (staging, commissions their broker's share? buyer agent share, etc.)
I recall from another episode he said they're splitting 50/50 with their investor. That's still good money, looking like about a $30K for each on a 6 month hold, call it 20% annual. Not clear if they're raking the seller agent cut for themselves, their closing costs look a little low to be doing that.
I'll have to build a rolling chart they've got at least six in the pipe probably more at any given time. IMHO, that's an interesting episode. So me a week in the biz. Scout prop #0A, #0b, #0C ... 0Z, bid prop#1, plan rehab & start demo prop #2, Contractor discussion props #3, #4, #5, staging prop #6, escrow close prop #7
irvinehomeowner
Well-known member
If I were a realtor, I would seriously consider flipping as a side business, seems easy enough as you have to be familiar with comps anyways and you would already have all the contractor and staging contacts.
irvinehomeowner
Well-known member
Obviously you need to hook up with some backer (or sell a home in Shady and use the commission as your first flip money and steamroll from there).qwerty said:
Isn't this what Larry's Superfund was doing? Buying properties for flip and rental income?
I should convince some FCB to let me use his suitcase to start up "Irvine Flips Inc.".
nosuchreality
Well-known member
I doubt remember how much rehab was on the Cypress house and I'm guesstimating from memory on the La Mirada house,
But with two episode to review still, my running total at the start of the Cypress house they were $989K in on three houses and still facing rehab on Cypress. Plus whatever other properties where in the pipe.
But with two episode to review still, my running total at the start of the Cypress house they were $989K in on three houses and still facing rehab on Cypress. Plus whatever other properties where in the pipe.
irvinehomeowner
Well-known member
Actually... I said if "I" was a realtor.qwerty said:
But now that I think about it, any *good* realtor should be able to line up financial backing if they really wanted to... or maybe Tarek just makes it look too easy.
nosuchreality
Well-known member
irvinehomeowner said:
I think he covered that earlier. He has a friend that obviously has deep pockets. The friend supplies the cash (by the looks of it, $1+ million) and he and wife supply the sweat equity of bird dogging everybody and selling it.
The Double Trouble episode in Garden Grove shows you the investor, it was early, Q1-12 so still new and investor had some pretty short strings on them at that time. I see in an upcoming episode Tarek ask mom for the money so maybe he cuts the investor loose or it's a really early episode.
As for being easy, the two episodes from last week make it pretty clear they did well, but in a weaker housing market, I doubt they would have broken even. Without the bidding war and the run up in prices before it, they'd have been upside down.
irvinehomeowner
Well-known member
I guess we disagree... my definition of a *good* realtor is someone who knows the market, knows what sells, knows what it sells for, knows the best locations, knows the type of homes that are hot, and knows what finishes/upgrades/features are popular. To me... if you use that knowledge, then flipping is just finding undervalued property and using what you know to have it sell for more.qwerty said:
I think there is overlap in knowledge and skill sets and they are not "entirely different" (which is why I think flippers like Tarek, are also realtors).