Property Ladder - New show on TLC

[psycobabe007]

Ya know, the only good thing that came out of this episode of Property Ladder is that now people see Robert and Sergio for who they really are. Hopefully these two goons are stopped from ever selling a house that they have flipped again. The tactics that they showed in this episode are completely unacceptable by any standards today in home construction.

[Google]

 

[Bearcata]

Just caught a bit of the new Property Ladder and 1st episode and realized that they are both stories of first time flippers over their heads. The second episode of Flip That House was another Nashvill story. Gee, Nashville must be doing very well lately. I like that Dave, age 26, was a real estate investor who seemed as if he was thinking with his head and had a budget and realized problems occurred and had a 10 -15% margin for unforseen problems. Dave has been flipping for 1.5 yrs and has investors, rental property and contractors that he has working relationships with. The house he bought is only 900 sq ft, has 2 bedrooms and 1 bath and cost $59,000. He has a budget of $20,000 and a timeline of 6 wks. I like how he able to be flexible and change his mind and to what to do. Originally they were going to redo the hardwood floors but considering the neighbourhood and the pricepoint and the target audience, it was cheaper and less time intensive to simply carpet the entire house. I like how his realtor seconded that by saying Do Not Overkill for the market. I see so many flippers put their personal tastes and dreams into what they want and way overspend and overdo for that particlular market that they may never recoop the cost. Still its nice to know that you can buy a house for under $100,000 in America. After the renovations which were done on time and on budget Dave is listing his house for $110,000 for a potential profit of $31,000.

[Bearcata]

1st episode of Flip That House on July 28, was in Santa Clarita, CA with victor. He flipped his first house at 25, which was 8 yrs ago and now that house is worth 3 times what he paid for it he decided to try real estate investment as a new career so quit his job and bought this 1400sf house, 3 bedrooms, 2 baths, for $450,000. He has a budget of $20,000 and a timeline of 4 wks. He wants to remove 6 evergreens that are a good 30 ft tall and will cost $6,000. mmmm that's good chuck of change, over 25 percent of his budget. He only has $14,000 left and he also has mold in the kitchen. When Victor mentions that he wants to take carpet from his own house to put in the master bedroom I nearly had it, thinking we had another Sergio on our hands. What are these guys thinking putting used carpet into a remodel. That is so cheap and lame. Jose Victor's dad does most of the work and does not want his son hiring contractors to do what he can do, with Victor helping him. Personally that just added to the timeline. Two people, one with no experience are not going to renovate a house in the same time an experienced crew will. This really is a question of time vs budget, short term cost vs long term costs. Then Victor discovers at week 4 that items ordered for the house such as tile and kitchen cabinents can take weeks to be delivered. Also he did not take into account a 7 or 10% waster overage for the new hardwood floor and had to wait several weeks for extra flooring to be shipped from China. Cutting the extension cord to the dishwasher while it was live was also interesting too bad he didn't have to take a trip to the emergency room doing it. At week 11 Victor has more than doubled his budget and decided not to reuse his old carpeting but to put in new. A wise decision. He did resod and relandscape the front but did aboslutely nothing in the back except remove the old trees. Just cleaning it up and fixing the planter box and adding flowers and mulch would have been nice and cleaning out the firepit. Still after spending $50,000 and 13 wks the realtor told Victor that he could put it on the market for between $540,000 and $545,000. He lists the house at $545,000 for a potential profit of 45,000. Victor has no money left and thinks about going back to programming for a while.

Victor did make some smart choices, using the silestone for countertops in the kitchen and quest bathroom. the new kitchen cabinents and the new hardwood floors. He painted the rooms neutral tones , and put in neutral carpeting in the bedrooms, as well as new doors, and closet doors and windows. I like the 18 inch tile he used on a diagonal in the kitchen, the new tile work in the quest bath and the fact that he put in a bigger shower in the master bedroom that was a really nice improvement. Too bad he did not do just a tad more in the backyard just to show the project as a finished project and not give the impression that the flipper ran out of money and perphaps let the buyers think that maybe he skipped out on other items.

[Bearcata]

One thing I have learned from these shows is do your research, get a home inspection and don't get greedy. Meet Minsu a first time flipper who bought a house that was in foreclosure and didn't get a house inspection and guess what there is a MOLD problem. In Spring, Texas, a 5 bedroom 3.5 bath house over 3,000 sf averages $192,000. Minsu got his in a foreclosure for $136,900 wants to renovate for $20,000 in 8 weeks and turn around and sell it for $210,000. Now if the average price for this type of house is $192,000 why would someone buy it for $18,000 more that Minsu wants. If he actually can stick to the budget and timeline and sell it for that price he would realize a profit of $53,100 which he would split with his investor for a profit of $26,550 that he and his wife would use for a downpayment on their own home. Now if you can get a 5 bedroom for 136,900 in forclosure you can't tell me this young couple can't find a 3 bedroom 2 bath for that price or less. They cannot be that financially strapped.

I liked how the mold made Minsu sick for one week. Don't people in these shows ever wear masks or safety glasses. I am waiting for the first splinter of wood or glass to go into someone's eye.

I hated the antogonistic relationship Minsu had with his investor. He was so disrespectfull.

Also he was a total newbie in construction and he wasted materials attempting to do baseboards and crown molding, his demo of the patio covering damaged the brick wall and almost brought it down, his disdain of his wife's observation's when she told him he was doing the fence incorrectly, cost him an addtional $1,500 when he had to hire professionals to fix his mistakes. His disregard for Kirsten advice as far as curb appeal probably cost him customers and he had to fix the driveway and patio anyway. You have to budget for landscaping/curb appeal. He didn't budget for appliances when he put together his budget, come on that should have been covered in preplanning. Even with all these problems he came in on time and $13,000 overbudget. At the end of 30 days he was offered $198,000 for the house which he refused and 16 wks later there have been no other offers. He should have taken the offer at the 30 day mark he still would have made $23,100 which he would have had to split with the investor.

The house cost $136,900. It was a foreclosure.
3200 sf
5 bedrooms
3.5 baths
$25,000 for the budget.
8 weeks for the timeline.

Finished on time.
Overbudget by $13,000 for a total of $38,000.

The realtors evaluations came in at $210,000, $195,000 and $175,000. Wow that last one was harsh. Minsu priced his house at $210,000 which was $18,000 over the average price of a house of that size in that area. He did nothing to the outside to indicate the inside had been improved therby loosing out on any curb appeal and driveby business. Another newbie flipper bites the dust and on national TV and breaking a promise to his wife. Major OUCH!

[Cherrygrlnwills]

I Can't Belive Those Bastards Sergio & Robert I Hope They Get Sued & I Hope If Anyone That Reads This Who Know Them Tells The Both Of Them They Are A**holes !!!!!! How Can They Have The Nerve To Say They Are So-called House Flippers And Do Such A Crappy A** Job On That House Then Turn Around And Sell It To Their Own People Like That Knowing There Are Problems With The House !!!!! I Just Could Not Belive What A**holes They Are I Hope The People That Bought That House & The Other One They So - Called Flip Sues Their A**es !!!!!!!!!!!!!
I'm Also Surpised The Show Did Not Do Anything About It & Kirsten Didn't Call Some One When They Knew The Sh*tty Job Those 2 Idiots Were Doing !!!!!!

[Bearcata]

Originally Posted by Cherrygrlnwills

I Can't Belive Those Bastards Sergio & Robert I Hope They Get Sued & I Hope If Anyone That Reads This Who Know Them Tells The Both Of Them They Are A**holes !!!!!! How Can They Have The Nerve To Say They Are So-called House Flippers And Do Such A Crappy A** Job On That House Then Turn Around And Sell It To Their Own People Like That Knowing There Are Problems With The House !!!!! I Just Could Not Belive What A**holes They Are I Hope The People That Bought That House & The Other One They So - Called Flip Sues Their A**es !!!!!!!!!!!!!
I'm Also Surpised The Show Did Not Do Anything About It & Kirsten Didn't Call Some One When They Knew The Sh*tty Job Those 2 Idiots Were Doing !!!!!!

I think house buying comes under "buyer beware" that's why buyers should always use home inspectors, and have the contract gone over carefully. There should be some kind of home warranty on a flipped houses. I really home that we get some kind of follow on those two thieves, swindlers, con artists, frauds. Gosh, there are just so many names that apply to them.

[Bearcata]

Memorial, Texas. A suburb outside of Houston.

I didn't get the name of the flipper but this woman is wound so tight that I really thought that she would have a stroke.

She also has a huge chip on her shoulder, but I honestly do not think contractors descriminate between male and female customers, they try to get as much money for as little work from everybody. Here in the DC you have to get at least 3 or 4 quotes. The car dealerships are the worse. Never, ever go to Merchant Tire and Auto. Total rip off artists. Still if this woman does not chill I can honestly see her collapsing. For a supposedly smart woman who is a mortagage broker by now she should know to have 10 to 15% of the budget put aside for surprises.

Stats:
House: 60's Ranch house, 2,700 sq ft, 3 bedrooms and 2 baths.
bought for: $350,000 (that surprised me as I had the impression that houses were less expensive in Texas, must be a nice established neighbourhood)
Budget: $55,000
Timeline: 6 wks
wants to sell at $500,000 for a potential profit of $95,000.
Monthly mortage: $2,800

I do like how PL is getting the comps from the area: Memorial is considered an upper middle class area and the average 4 bedroom 2 bath house sells for $512,000.
She wants to enclose the carport and make it a 2 car garage, and make the old garage a laundry room and 4th bedroom.

I love how Kirsten tells her to check the permits and she doesn't and it bites her in the butt. Work is held up for a week, She was lucky she got her old crew back. Also there were problems with the HOA as she needed their permission to enclose the garage. Probably held up by the ARB - architectural review board.

Honestly if I heard this woman say one more time she was not stupid and that she would not be ripped off by a male contractor I would scream. I got it. Is that a vein I see throbbing in her forehead???

Major problem with flooding in the backyard that the landscaper says will cost about $3,000 to fix and she says no cause she is over budget and hopes it will not rain when there is an open house.

Although she is working full time and is married and has kids, I give the woman lots of credit as she is on the site, it looks like pratically every day, and she catches mistakes that the contractors did like not doing the tile correctly in the foyer and not doing it right in the bathroom.

Interesting to note her problem with the AC, general contractor says the AC unit is new and just needs maintenance. The first AC guy says not you need a new AC and furnace, second AC guy says furnance is only 3 yrs old. etc.... Amazing how contractors do "lie" to you. My AC guy has already told me that my furnace will last only 10 yrs and I have almost been in the house that long. It will of course cost $3 - 4,000 to fix.

What really blew me is the closet in the fourth bedroom. You could not even put a hanger in that closet it was so narrow. I like Kirsten's advice. Let the owner decide if they want a closet in that room or not, don't waste the money.

Still after all the problems the timeline got pushed back to 8wks, and the budget was over by $21,000 plus carrying costs. The flipper set the price at $539,000 which Kirsten felt was too agressive. The three realtors priced the house at; $520,000, $510,000, $490,000. The open house was good but after feedback from that the flippers decided to spend the $200 on sod for the backyard. 2 weeks after the open house she got an offer for $511,000 and took it for a profit of $80,000. With the overage of $21,000 plus carrying costs the final budget was $83,000.

[Bearcata]

Flip That House and Property Ladder have been very upfront showing us quite a few first time flippers who go into the business without any planning, a realistic budget and timeline. Also many of these first timers are going into project way over their heads. A simple new carpet, fresh paint, do all the maintenance and clean everything first and improve the curb appeal is where first time flippers should start and not get too greedy.

In Sunland CA, long time friends, Tamir, a grad student, and Isabelle, a financial svcs consultant are first time flippers. Tamir wants to make enough money to pay off his student loans and to pay for the rest of his schooling. He will be the project manager and plans to complete everything in 10 wks so he can take off to Europe for 3 months. Isabelle is there to support him and not do any of the work. They buy a 1,100 sf home for $510,000. It has 2 bedrooms and 1 bath. The Budget is $60,000 and the timeline is 10 wks. At first the budget seems big enough until I heard that they plan on adding a new 2 car garage, a new addtitional between the kitchen and living room and adding on a new master bathroom suite. The addtions will add 700 sq ft of living space (I am not including the garage). Are they nuts, they budget is blown.

Tamir is not spending much time at the site and nothing has been done after the first day for about 3 wks. They have to go through several contractors. By week 23 (Oct 21) Tamir is gone. He and Isabelle have big differences with the money and management styles. Isabelle has to take over the project. We see her at 6 months, than later at almost a yr. The realtors tell her she has done a good job. The budget was blown from $60,000 to $250,000 and even if Isabelle can sell the house for what the realtor suggest she will still have a loss of $15,000. She also lost her friendship with Tamir. What does pisses me off about this is that Tamir should bare the burden of the loss and it not all be dumped on Isabelle. This episode is a great example of how a friend (Tamir) talks a friend (Isabelle) into a get rich quick scheme and then dumps it all on you. Future flippers beware!

[MamaC]

If there was a blessing in any of this episode, it is that Tamir is not going to be able to pay off his student loan!

What is strange is that I saw this episode last weekend. Usually you get the same show at the same time I do. Don't know what happened with the scheduling this time around.

I missed most of this week's show, but it was about some guy who quit his job to flip houses. His wife continued to work to pay all the bills. She was stressing about the money going out quicker than it was coming in. The flip house was quite a ways away from where they lived so, after so many weeks, he just stopped commuting daily to the flip house.

The guy also had problems with several plumbers. He kept failing his plumbing inspections. Those failures threw his timeline way off.

The strangest part of this flip was how he configured the bathroom. The room was plenty big enough where he could have put in a much nicer bathroom. But he put the toilet directly under the bathroom window. He only put in a small, one-sink vanity...maybe 24 or 30 inches. He also put a shower in under the eaves of the roof, and many of the people who came to the open house could not even stand in the shower. The space really looked like it could have had plenty of room for a bigger shower set up elsewhere in the room and, perhaps, even a tub.

The three real estate agents, who came by to check out the house, were all over the place with their asking prices. The lowest one, who hated the bath, came in at something like $159,900. The other two thought he had done a lot of great work and were more in the 180-190K range.

I don't think the house sold at all, it was still sitting on the market as they were wrapping up the show.

Of course, he did plan on flipping more houses!

[bee stung lips]

Aside from the annoying Sergio flip a few weeks ago, the one from this past weekend was one of the most pathetic I've seen on this show. Toilet in front of the window? Ugly, cheap vanity in the corner of the room? Height-restricted shower? Puleeease....