Flipping TV shows can be frightening for investors. And it’s because they make the average viewer believe that with just a few dollars a house can be turned around for huge profits. Such shows sometimes make investors look like they are geniuses, but those who have operated in real estate will tell you that most of the figures they show on television are false.
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The dream and reality
The numbers are primarily inaccurate and were created for the series and to make good television. Secondly, remember the underestimation of recovery costs. They do not take into account tons of expenses. Issues such as taxes, cost of keeping, fees, closing costs, and so on are all left out. However, in the real world, you cannot leave these out of your calculations. I recommend that you take a look at the actual market rates in the area and do your calculations the next time you look at such a series. If you decide to do this, you will see exactly what I am saying. The percentages never add up, and that alone reveals precisely how the shows are written, for viewership.
The shows illustrate that many buyers are still lined up to purchase the home. You would assume that flip-friendly houses can easily be found on the market, but it does, in fact, take a strong knowledge of the market and a lot of research to be successful. Now a real investor has to work hard not just to find houses to flip but also to find buyers who would like to pick up a home.
Flipping TV Shows: Exploring the truth
Real estate is a complex process. Finding and buying a house takes some time. And the restoration and sale take much longer. These episodes demonstrate, however, quick changeovers with significant refurbishments can happen rapidly fast. The program makes real estate appear as a fast-growing way to make a quick buck, almost by merely deciding to be involved in real estate.
In truth, the individuals you encounter on these shows appear to me in the know on everything real estate. They don’t value a well-documented process and operate by their gut in almost every case. There is no study, research, or meaningful analysis on “is this the right property to buy.” Also, many of the flipping TV shows personalities run around screaming and demonstrate high-flying emotion when dealing with contractors. In reality, you can’t run a business like this, at least not for very long.
What Real Estate Investors Really Do
Furthermore, it is not reasonable to expect professional real estate investors are driving around in fancy cars, wearing suits, and negotiating for the absolute lowest home price. In my judgment, that sort of luxurious lifestyle should be reserved for nights and weekends. During the day, it is imperative to be an average citizen who buys and sells in your community. Many of these flipping TV shows make investors look arrogant and wealthy – and most of them are not.
In many cases, these TV personalities get everything worked out in advance, only to show up and act awe-inspiring when they encounter a given real estate problem. I know this sounds negative, but I really wanted to take a minute and point out the positives. In truth, you can be better than them when working in real estate. Don’t be depressed because you don’t run into the same situations they do or wishing you knew everything they knew on the fly. Remember it is entertainment first, it is not a school course where you are expected to learn the true in’s and out’s of real estate investing.
Don’t Be Confused
The harsh nature of real estate investing is very complex, and many of these flipping TV shows are there to only make money from entertainment or ancillary products. They have very little flipping truth in them and are designed for pure entertainment. Which begs the question, why the creators of these shows still make them when there is so little profit coming from it? Well, they profit, and it is from other sources. If there is one way to over-glorify real estate, it is to make a flipping series on real estate TV, where the down to earth real estate developer is the show’s suitable character, where problems become obstacles, and where there is always a happy ending, no matter what.
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