Skip to comments.You Too Can Make Millions "Flipping" Houses (As Seen on TV)
Posted on 02/26/2014 8:05:59 AM PST by SeekAndFind
I have been under constant barrage of unsolicited phone calls recently. The phone calls typically begin with the same lie: "Mr. Shedlock you told a colleague of mine a few months ago to call you back when we have a really good investment opportunity".
Given that I never ask anyone to call back, they are known liars from the start. Depending on what kind of mood I am in, I may hang up immediately or listen long enough to hear what kind of nonsense they are peddling.
I asked one of the liars the name of his colleague that called. He answered George. I said "George who?".
The caller got exasperated and replied "Washington".
The predominant thing these guys are peddling is the opportunity to lose a lot of money fast, frequently in the oil or natural gas industry. But lately the charlatans have pestered me with real estate opportunities, shorting gold, and buying microcap stocks I have never heard of (most likely the classic pump-and-dump) variety.
This is the kind of thing that happens at market tops. Everyone wants in, and the fraudsters come out in force to take advantage.
Nonetheless, I offer my standard warning: Just because this activity happens at peaks, does not mean this is the peak.
Sentiment typically gets more extreme than anyone thinks possible.
Social Media Bubble
Facebook recently paid $19 billion for WhatsApp, a company with 55 employees and no revenue.
Supposedly this is a good deal because WhatsApp is growing fast. It is growing fast because it has a cute texting app that it gives away for free.
How many customers would it have if it starts charging? Enough for a $19 billion valuation? Not a chance.
Pater Tenebrarum has interesting discussion in his commentary "Social Media Bubble".
Flipping Yet Again
Meanwhile, this farcical ad popped up on my screen just today.
Want to know what "As seen on TV" means?"
Typically it is a sleazy phrase that means they ran an ad somewhere on TV, at least once.
Such ads usually run on an obscure channel at 3:00AM. But hey, it's "as seen on TV". They never said "in a show".
Please note the little asterisk that reads "results based on effort".
Also note a word is missing. Here is the split sentence combined "Learn How to Get Started Flipping Houses Than Merrill - Star of A&E's "Flip This House"
The ad makes no sense unless your mind inserts the word "Better" right after the word "Houses".
I have a simple question: didn't we try this before?
What could possibly go wrong? Millions of people borrowing money, intending to hold assets for a short period of time and sell for huge gains?
“Than Merrill” is a person whose nickname is Than and whose whole name is Nathaniel.
RE: Than Merrill is a person whose nickname is Than and whose whole name is Nathaniel.
Why not call himself Nathan instead?
In it I sit there for an hour explaining the steps involved:
1. Make video explaining how to make a video.
2. Explain in video that millions will want to buy your video
3. Explain in video that people will pay you to tell them that others will pay them to hear this advice
4. Sell video. Get rich. Buy island and yacht.
The author of this article, Mr. Shedlock, is an idiot. He gets a phone call from our first president (probably via some sort of time portal), and all he does is whine about it.
Actually, I know 2 people that “flip” houses and have been doing it for years. It takes capital. You have to be able to make an offer or buy a property as soon as it comes on the market. Typically here in NH that means you have $300K to $500K cash on hand or a bank credit line for at least that. This is not Detroit or Cleveland where you can buy houses for under $50K.
The other thing that both of these contractors have in common is they get their hands dirty. They do not hire other contractors to do all the work like you see so often on TV. My one friend has a bulldozer, backhoe and an excavator. He also has a full woodworking shop to do any millwork projects himself. These guys drive pick up trucks not Porsches.
There is one flip show that has a smoking hot blonde.
RE: There is one flip show that has a smoking hot blonde.
Pics please. There are rules you know...
This TV show and money-making scheme is not about doing it the right way. Of course, skilled businessmen with capital can make money. This advertisement is aimed at dummies with no capital.
Or “Nate”? Or “Nat”? Those are all common nicknames for Nathan or Nathaniel.
It AMAZES me. Any number of supposedly rich real estate, small internet company or house-flipping MILLIONAIRES hawking their schemes (DVDs, brochures and hotel ballroom sessions) to thousands and thousands of people hoping to strike it rich like them - using NO MONEY OF THEIR OWN to do it!
They, the rubes, eat it up like high grade slop, pigs to the slaughter so to speak.
They never ask the question “If this _______ is a MILLIONAIRE doing this, why in the hell is he trying to get me to buy his DVDs to do the same thing?”
I guess it’s because they’re humanitarians and just want to make everybody rich, huh?
You can be a Millionaire and never pay taxes.
First, go and get a million dollars.
Then when the IRS comes to your door, saying ‘you haven’t paid taxes’, just say “I forgot.”
Well, actually the call wasn’t from GW per se. George was “an associate” of the guy who called. Maybe the guy’s 250 — what do I know?
In a similar note, I hate those people who call trying to see you car repair warranties. One time someone said the warranty on my car was about to expire.
I figured they were just fishing so I asked “Which one?” “The one you bought last” “Well, what make and model, maybe your records are incomplete and I bought another one you don’t know about yet. What model year?” So his script totally breaks down and I read him the riot act for like two minutes about how making false statements over the phone to sell a product was fraud and he, personally, was lower than the stuff I occasionally have to scrape off my shoe. For some bizarre reason, he still thought he was an honest salesman. At least that was two minutes he wasn’t ripping someone else off.
I have a friend who has done very well flipping houses.
She 1) had a broker’s license even before the crash of 2008;
2) has a close relative who knows another real estate broker who is unusually adept at finding bargains
3) knows a few people with LOTS of available cash;
4) has a very good real estate attorney.
All of the above get a chunk of the action, except the attorney who bills for services rendered.
She was doing it for a couple of years when the advertisements started up. Which was right around the time she said it was becoming more difficult.
The limiting factor has been cash. Anyone who tells you that you can flip houses without cash is either lying, or is going to advise you to do something illegal.
Yep cash is king. You have to move fast and having the cash on hand is the only way.
Phase two is to donate the underpants to charity and take it off your taxes, just like the Clinton’s did.
A few days later he called me, told me who he was and said that he noticed I was a particularly intelligent and motivated person and he had an opportunity for me. I told him right away that from my grunting response he had no idea if I was a modern day Einstein or the village idiot and I wanted to know what he was trying to sell. Turned out it was some multi-level marketing program that made Amway look good. Way to get me interested in your scheme by lying to me with your first words on the phone.
His show is off the air. It was better then most. I would watch him and his partners fix up a house or 2 during the 30 minutes. The show was dropped when the economy dropped and home prices fell.
There is another guy named Armando Montelongo who also had a show on A&E. He has been sued dozens of times. He acted sleazy on his show. He then sold real estate books on info commercials and now does seminars.
You get into his seminars for free but many people sign up for additional courses or buy his materials. He just forgets to stop charging your credit card. He looks sleazy in his commercials.
Forbes article: http://tinyurl.com/qh55w9z
GW is an associate of mine, I’ve got one of his cards in my wallet. I had 3 of his cards in my wallet this morning but then I visited a vending machine.
That depends on whose underpants they were ...
LOL — very good! Odd shaped business cards but people seem to like them.
Hey, it’s can’t miss, right? (Which means there is a good likelihood you will miss.)
If it’s such a sure thing, why aren’t you out there doing that instead of sitting in a studio recording a video? And furthermore, why would you want to attract competition to the market from which you derive such a fortune? You’d think you’d be killing anyone who figured it out on their own just to keep the secret all to yourself.
I have seen her show. It takes place in Detroit. She bought a house that had a fire and turned it into two moderately priced apartments doing much of the work herself. She is a bargain hunter. She will go to salvage yards and buy stuff that needs to be refinished and install that into the house.
The places she works on do not have granite counter tops when she is done.
On a side note, I believe she is available. I believe she is divorced with a teenager.
Doing your own work would be more tax efficient. Your labor provides value in a way which is taxed as a capital gain and not income.
Likely thinking of Nicole Curtis of DIYs "Rehab Addict". Good show, BTW.
The key to making money on these deals is:
a. Find a stupid or desperate person to sell you a house under market value.
b. Find a stupid or desperate person to buy that house above market value.
Also note a word is missing. Here is the split sentence combined “Learn How to Get Started Flipping Houses Than Merrill - Star of A&E’s “Flip This House”
The ad makes no sense unless your mind inserts the word “Better” right after the word “Houses”.
I read it as “Than Merrill” is the guy’s first and last name.
Years ago I kept getting (maybe twice a week) a letter from a fortune teller, who, for a small donation, would tell me what the winning lottery numbers were going to be on any given day, what my lucky number was, etc, etc. so I could get rich fast. Normally, I would throw the stuff in the trash but this one time, I wrote back that if he/she knew what the lottery numbers were going to be on a given day, why didn’t he/she just play the lottery and quit asking me for money! Never heard from he/she again.
Several years back, the cartoon Foxtrot addressed this very issue. The dad wanted to learn how to be a millionaire. So he goes to seminars and buys a product on how to become a millionaire. The product turns out to be a brochure that costs $200.00. The advice on the brochure, "create a product to sell for $200.00, sell it to 5,000 people, congratulations, you're a millionaire"
The dad didn't get that he was taken, he only commented that there must be more to it.
When I was a graduate student at Purdue, back in 1955, one of my friends came from a family that did just that, in the St. Louis area. Buy a run-down house, put it in shape, and sell it. Apparently her family made a good living at it, but it took work. I don't think the term "flipping" had been invented yet, and what they were doing wasn't really "flipping" as it exists today. "Rehabbing" comes closer. They were adding (or restoring) value, not just waiting for the bubble to grow bigger.
YEARS ago, when I was in the print trade, I subscribed to "The Publishers Auxiliary", which always ran a few classifieds from the early days. Your ancestor must have run this one: "Send one dollar for my secret on how to make lots of money." Some guy sent in a dollar and received this sage advice: "Do what I do."
Not really related, but I cracked up with this one: "Send one dollar and I will tell you how to raise beets." The dollar was sent in and the recipient was told "Pull them by their tops."
I’ve gotten rich just by following Cementjungle’s simple four-step program!
How to get rich.
Tell people they can get rich. Tell them to send you a SASE with their address. Tell them to send you one dollar.
Send them back envelope with piece of paper in it saying the following:
Do what I do.
Cash out and retire.
Flipping with no money is overrated. The easiest is to tie up property at a bargain price and then go sell the contract to rehabber or retail customer. Much more long term income to be made renting. Need considerable cash to get started. Sweat equity is a real good thing.
I feel valuable information has been withheld
I found the best way to deal with those
You are not obligated to have any conversation with telephone salesmne so I just say “STOP!” and as politely as possible tell them “I do not take telephone solicitations of any kind, please remove me from your list, Thank you” and hang up
A friend just dropped $10K on Chief Denney’s “flipping” seminar. And no, she does not have access to any capital.
The MN babe, single, one child, about 110 pounds, loves to get dirty, long blonde hair,.. OH! Sorry.
Yes, I agree; I looked into the Montelongo seminar, but found that people got hooked into spending $20K ultimately to get his “expertise.”
He can call himself anything he likes. But if a reporter or commentator is going to rant on the internet, he should do the fact-checking expected of journalists who care about their credibility. It took me less than 60 seconds to find out the facts about his name.
The fault is the writer who shot off his indignation without a one-minute Wikipedia check, where he could easily have found the man's name and not made himself sound like Emily Litella.
The moving fast part is critical; also having a great stable of reliable contractors. The last part is harder than finding capital.
To be fair, isn’t it possible that a person could conceivably become a millionaire in the residential market, and then want to share what he learned with others? IF all things are equal (including the state of the market and the economy), the successful flipper/instructor would by then have amassed enough captial to move into the riskier and higher-cost apartment/hotel redevelopment market, and holding classes for beginners could help pay the bills for that leap.
Not all businessmen are shysters. But almost everyone who wants a get-rich-quick approach to life without being willing to work hard is going to fall prey to the dishonest ones.
Another important quality in a flipper is not having unrealistic expectations. A tv flipper like Jeff Lewis wants to net a million or more a year, dealing in houses that sell for several millions. A flipper who wants to make a living can be content with several houses in the $150K-250K market and clear $60K to 100K a year, depending on the size of his or her family.
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