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Author Topic: Property Ladder TV show on TLC  (Read 69360 times)

Offline evergreen

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Re:Property Ladder TV show on TLC
« Reply #15 on: June 14, 2005, 08:37:47 pm »
Yea I was thinking she should stop. I don't know her but you would think she learned a ton.

For all we know, she is just glad it is over and rather not do anything like it again. The bottom line is not everything.

The fact that she came out with even a $1 is amazing.

Offline Carrie_Calgary

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Property Ladder TV Show
« Reply #16 on: June 24, 2005, 05:59:35 pm »
What kind of research would you recomend doing to get into this field?  Where to start?  Should I take courses to better prepare?  I'm 22 years old and love re-decorating (Have renovated 4 rooms in my parents house already including plumbing) so after I saw the show I was hooked on the idea.  Should I take Investing / Real Estate / Building or Remodeling courses?  Just curious as to where to start if anyone has the time to give me some advise I would love them forever!
Thanks
~Carrie

Offline RyanTrim

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Re:Property Ladder TV Show
« Reply #17 on: June 24, 2005, 08:23:10 pm »
What kind of research would you recomend doing to get into this field?  Where to start?  Should I take courses to better prepare?  I'm 22 years old and love re-decorating (Have renovated 4 rooms in my parents house already including plumbing) so after I saw the show I was hooked on the idea.  Should I take Investing / Real Estate / Building or Remodeling courses?  Just curious as to where to start if anyone has the time to give me some advise I would love them forever!
Thanks
~Carrie

If you are going to be flipping, I'd suggest you look into the economy and whats going on around you.  I know for where I am flipping is out of the question but the rentals is a gold mine.  I hear Calgary has a pretty hot market right now...maybe you are in the right place?
Interested in investing in Ontario Canada?  
1-705-930-6166
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Offline evergreen

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Re:Property Ladder TV show on TLC
« Reply #18 on: June 25, 2005, 02:39:14 am »
There are courses available from this site on rehabbing, if that is what you want to do.

Start by reading every single post here and then proceed. You should start getting familiar with the RE prices and trends in your area.

I don't rehab myself but there are many things you will need to know. First, you need enough spread to be able to sell the house quickly, which means selling below value.

On a recent show, 2 ladies from texas bought a property that had a ARV value of about $120. They bought it for $52,000. I think they got screwed since the home had to be basically tore down to the frame and rebuilt. Anyway, they figured on 30k for repairs. They spent 50k. They sold the home for 118k I think it was.

Result for them? After the few bucks they spent not on the show's calculation, advertising cost, and closing, they most likely made about $8k-$10k maybe. They did most of the work themselves for four months. Everyday they were out there ripping siding down, ripping walls off, etc.

The lesson there was to make sure you get a good enough deal, factor in spending overages, keep track of your money and stick to a plan, and know what you can and can't do.

Offline TamiSpartan

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Re:Property Ladder TV show on TLC
« Reply #19 on: June 25, 2005, 08:19:00 pm »
Anyone but me wonder where the heck they get their numbers?! Let alone all the carrying costs they are leaving off as they state the "profit" the rehabber is making <sigh>.

With delight I watched the marathon other evening. The gal with the $12K invested on her condo -- yeah right! Her 1/1 -- if it was 500 sf, the install of the wood flooring was $1,500 minimum, no materials. And on and on....

The two Texas women just made me laugh -- my husband wants to know if I'm doing this for an "enhancement." They so sucked at budgeting. I wonder if anyone told them to check out the actual neighborhood and then build-to-suit. If your neighbors are putting up "No Parking" signs -- tell me what a great job they did cultivating the market. They were ripped off on the initial purchase -- as I always say, make sure you have the home inspected by a licensed inspector. I bought a home a few months after another gal across the street. She entirely gutted hers. I did serious work to mine, but I didn't gut. Mine was already finished, gorgeous and rented; she finally finished hers and put it on the market to sell -- way overdone for the neighborhood. I just drove by to see how my tenants were doing with the yard, etc., and now she's got a "for rent/sale/lease" sign up. I mean duh. Don't get me wrong, her house is beautiful -- but her cost was ridiculous for the area; she seriously miscalculated. There is no way she can get her money back.

People, watch your market -- don't do a full gut job if you don't have to -- keep your house within the market for the area you are doing. Actually go visit the homes for sale in the area -- see what you need to do. Even for a flip make it beautiful on a budget -- remember your buyers just don't want to do the work. Their perceived vision: Is this beautiful and am I getting a deal?

Tami
~Tami

Offline Markw

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Re:Property Ladder TV show on TLC
« Reply #20 on: June 26, 2005, 06:23:47 am »
The new one last night had me questioning it all...

When they said it cost them $12,000 to rehab my first reaction was "yah right"

I was also a bit confused as to why exactly they ran out and bought 3 properties at once as "first timers", when it took them over 12 weeks to just finish one of them.  Unless the deals were just THAT good to make it worth making a loan payment on for a few months while the house sits.

The show uses a lot of sweat equity too, which increases the profits and makes the show that much better !

Hard to belive they made 80k profit off 1 condo that sold for 235k

Offline kdhastedt

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Re:Property Ladder TV show on TLC
« Reply #21 on: June 26, 2005, 07:04:30 am »
Markw...

Last night was my first time watching....what a pair of putzes...atleast their hearts were in the right place.  I agree with you, there is NO WAY they bought new appliance, painted everything, put in an outdoor shower (complete with plumbing, etc.), new travertine floors pretty much throughout (installed by tile guys) and new carpet where they didn't put stone, and only spent $12K...not bloody likely!  They spent almost that much in refrigerators!

They didn't hit a lick of work for almost 6 weeks after the hostess helped them rip up carpets.  At first I thought that

In the end, they did wind up getting $250K.  

I asked the same question -- why would first-timers buy 3 at once AND have fulltime jobs?

I must be doing something wrong!  LOL

Keith
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline evergreen

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Re:Property Ladder TV show on TLC
« Reply #22 on: June 26, 2005, 05:04:22 pm »
I believe they bought 3 props. Just look at what kind of people they are. I would be the same way. Paint an air duct covering and go soak in the jacuzzi :D

Anyway, the show does not figure in the help from friends and others. Most likely these people are being paid after the sale, but the show does not disclose this. They most likely bought all 3 props at once thinking it was easy to rehab and flip.

I can see how they came close to 12k on supplies. They did a lot on their own. Just look at the texas two-some episode. They were out there every day all day for months doing all the hard work.

The show should say that if you don't like to work or have talented friends, you cost will be MUCH higher.

I about died laughing from refrigerator-gate. In the end, the one they took was probably $1000. I was just out pricing them the other day and that should be close.

If you watched the show the past few weeks you noticed a trend. Bumbling idiots come out ok in hot markets. The texas two-some just about made zip in a weaker market. So if it is your first time, do it in a higher priced growing market.

That show is dangerous though. You see these dumb people doing all sorts of bad moves and coming out ok. I bet many viewers are thinking, if they can do it so can I. They should go into a little more detail to do the situation justice.

Offline kdhastedt

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Re:Property Ladder TV show on TLC
« Reply #23 on: June 26, 2005, 06:07:07 pm »

My wife made a good comment:  How would you like to be the people that bought this house that they were going to sell at $220K for $250K and then seen the footage of the show!
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline evergreen

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Re:Property Ladder TV show on TLC
« Reply #24 on: June 26, 2005, 07:35:14 pm »
Well they took the first offer and it was what they asked. The better question is how do you feel knowing you just bought a property without knowing the market too well and giving the seller the asking price with no negotiation?

I mean geez. Even when I went to the flea market as a little boy to buy Nintendo games, I haggled.

Too many people buy property like they buy soup in a grocery store. Well George, it says right there $250,000 so that is what I must pay. Can you double bag that please?

That show was an excellent example of you can't get it unless you ask for it. In most markets, people are not just going to throw money at you. If they asked 220k, they would have received a 220k offer and took it. They would have lost 30k because they did not ask for it.

Better yet, is it me or is pricing a condo complete guestimation?

Offline TamiSpartan

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Re:Property Ladder TV show on TLC
« Reply #25 on: June 27, 2005, 07:59:59 am »
That show is dangerous though. You see these dumb people doing all sorts of bad moves and coming out ok. I bet many viewers are thinking, if they can do it so can I. They should go into a little more detail to do the situation justice.

There is zero doubt in my mind, people will be jumping into rehabbing/flipping because of this show. Heck, I think one of them just outbid me, by a substantial amount, on a house that had been on fire. My Realtor and I had a good laugh over it. The bank and I were so close to a deal, and then they received an almost retail offer. The new owners get what they deserve (wouldn't they like to know the bank would have accepted $30k less?). Look for the house that's been on fire in an Atlanta suburb on a future show  ;D

I definitely appreciate the sweat equity they are putting into their properties. Clearly that is how some are keeping their costs down. I wish I saw refrigerator-gate, it sounds like I missed a good one.

I really enjoy everyone's posts -- thank you for the smiles.
Tami
~Tami

Offline kdhastedt

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Re:Property Ladder TV show on TLC
« Reply #26 on: June 27, 2005, 08:48:28 am »

The refrigerator thing was a hoot!  The hostess told them to pay a little extra and get a counter-depth fridge (it was a small kitchen without a lot of room to move around).  Of course, the two idiot 'dudes' were smarter than she so the bought a huge black fridge that left about 2 feet to move past it.  They actually measured it in the showroom and said it would fit but then they got it home and the fridge had the cooling fins in the back (about 5" of lost space) plus it was hitting the valve for the icemaker that stuck out of the wall (another 4" lost).  They actually asked the delivery guy if they could take the fins of back (I was crying by then!)...

Next they got a large side-by-side that didn't stick out as far but it was still overwhelming for the kitchen...the one brother loaded it up while his brother was out and hauled it back to the store and got a 3/4 size "dorm room" fridge.  They put a large microwave on top of it and it still didn't even come close to the cabinets!

It is satisfying to know that if two idiots from Chicago can do it, it should be a breeze for most of us!  The only thing that saved them was that they WERE in California.  If you are looking for the "greater fool", you've got a 'target-rch' environment there!!!

And, yes, Evergreen, condo pricing is a SWAG, even on good days.  I guess it goes to show that real estate is worth exactly what someone is willing to pay!

Keith
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline Jack9

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Re:Property Ladder TV show on TLC
« Reply #27 on: June 27, 2005, 11:41:58 am »
I love this show. There are a lot of good comments on here about it. I have seen all 4 epsiodes so far. Here are my observations:

Texas girls: I don't think they worked every day on the rehab, but I suppose they put in 350 hours each over the 4 months.  As stated by others, the numbers they give don't include holding costs, closing costs, and Realtor fees. I calculate that they only made a net profit of $1,000 on this place. They were in way over their heads here. But I admire their hard work and I hope they get their breast implants, for a peak I might just chip  :)

Sales guy Anthony Townhouse: He paid to much going in for this townhouse. I calculate he netted about $25,000 after all expenses. Probably $25,000 of that $25,000 was because of the huge Appreciation during that time period in the SoCal market. He also got $10,000 in free labor from his father and brother.  His idea to take out perfectly good Kitchen tile was the most ridculous of any episode.

Bartender girl Beach Condo: She was the worst. The only reason she made money off of this Condo was because of appreciation. She flirted  a lot of free/cheap labor  from her Bar buddies, and what was with that one troll guy that was there most of the time in the background, he was like the cuckheld silent partner that wasn't allowed in front of the cameras. I estimate that she netted $20,000 after all expenses, Probably $25,000 of that $20,000 was because of the Appreciation Bubble in SoCal. Her profit was a total fluke of appreciation, she showed good judgment in putting the money towards that valuable Art History Graduate degree rather than into another RE project. She can always make good money as a stripper/parttime actress/parttime barmaid.

The Brothers Palm Springs Condo: These guys were not newbies. This was their third rehab.  The 41 year had a custom cabinet making business, hence he surely knew a lot about rehabbing. I don't believe the balding guy was 26. I thought they bought at a good price and did a good job. The drama that the show tried to impart about the Taxes and the delays were stricly for show. I estimate that they netted $50,000 after all expenses.   But at least $25,000 of that $50,000 was SoCal aprreciation.


Offline evergreen

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Re:Property Ladder TV show on TLC
« Reply #28 on: June 27, 2005, 02:58:06 pm »
Bartender girl Beach Condo: She was the worst. The only reason she made money off of this Condo was because of appreciation. She flirted  a lot of free/cheap labor  from her Bar buddies, and what was with that one troll guy that was there most of the time in the background, he was like the cuckheld silent partner that wasn't allowed in front of the cameras. I estimate that she netted $20,000 after all expenses, Probably $25,000 of that $20,000 was because of the Appreciation Bubble in SoCal. Her profit was a total fluke of appreciation, she showed good judgment in putting the money towards that valuable Art History Graduate degree rather than into another RE project. She can always make good money as a stripper/parttime actress/parttime barmaid.

A little sex goes a long way :D

On the California bros, this was not their 3rd rehab, it was the 3rd property they bought to rehab. This was the first one they actually completed and sold. The other 2 were just sitting there. According to the show, they were paying about $7,300 monthly in mortgage to hold all the properties.

I can't wait to see the next episode. I really want to see more rehab work in down markets like Ohio, where rapid appreciation can't help. Think about it. In Vegas, where the market is currently soft, homes go up 1% monthly. That is $3k per month on a median valued home. If you took 5 months to rehab and sell, you have $15k in appreciation. This means you could be semi poor with your numbers and still come out ok. In a hot market, this is even greater. However, in say Ohio, you buy a home potentially worth 100k and that is what it will be worth in 5 months.

Well, off to the bar to flirt for help lol :D

Offline TamiSpartan

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Re:Property Ladder TV show on TLC
« Reply #29 on: June 27, 2005, 03:48:18 pm »
I can't wait to see the next episode. I really want to see more rehab work in down markets like Ohio, where rapid appreciation can't help. Think about it. In Vegas, where the market is currently soft, homes go up 1% monthly. That is $3k per month on a median valued home. If you took 5 months to rehab and sell, you have $15k in appreciation. This means you could be semi poor with your numbers and still come out ok. In a hot market, this is even greater. However, in say Ohio, you buy a home potentially worth 100k and that is what it will be worth in 5 months.

Well, off to the bar to flirt for help lol :D

I would love to see more soft-market work too! I am thoroughly enjoying the shows. Rehabbing is hard work, especially if you are down in there doing the work too. I always do some work on my properties myself. It's a great way to keep an eye on your crews too. Some hate it, and I've had contractors ask me not to show up. I have a standard reply, "You mean at my house? See you tomorrow." I've made mistakes too but I would NEVER have torn out a perfectly good tile floor.

Evergreen, I'll see you at the bar -- I need some heavy-duty landscape work done. And, there isn't much they can steal LOL.

Jack, your post killed me! I'm still laughing at your assessment of the Bartender Beach Condo Girl and your future career choices for her.

Everyone wish me luck, I should be hearing very soon on a huge two story, 3/2, three-car garage on a fenced acre that I bid on last week. This one has 'issues' with the plumbing between the floors. If the "I-don't-know-what-I'm-doing, but-this-sounds-like-a-great-price-to-me" Folks don't throw the full asking price on the table again, I should be OK. However, with the luck I've been having -- I won't count on it LOL.  

Take care!
Tami
~Tami

 




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