MovieChat Forums > Flip Men (2011) Discussion > What a joke!

What a joke!

posted 12 years ago by enathanb1
3 replies | jump to latest

In every episode, the flippers are shown estimating that it will take from 15 to 20 grand to rehab a house. In only one episode, where wiring was obviously wrong do they even look at the electrical system of a house. They try to cheap out on everything they do to fix a house. When a basement floor drain is blocked, they complain about having to call in a plumber that will cost them $100.

Then they claim that for each day a house goes unsold, it is costing them $600. It costs very little to list a home for sale. Real estate agents only get paid when a sale happens. And an unoccupied house uses very little electricity and no water, so utilities costs are very low. The only thing that could be costing them money is if they are renting the furniture they are using to make each house look lived in.

They are basically throwing lipstick on a pig. Then even though they are making a profit, they claim they are losing money.

[–] jaulfin-haulic 12 years ago

The $600 per day that they are referring to is the interest carrying costs from the hard money lender or the private investor who funds these flips. That is a reasonable fee based on the fact that hard money lenders charge between 16 and 24 percent per year, plus an average of 5 points up front.

[–] velvetjoneslives 12 years ago

That still doesn't explain the $600. Most of these properties are in the sub-100k range. Even at 24% that does equal $600 a day. $600 a month? Yes, but I'm not sure where that daily number comes from. I also don't know why the borrow so much at this point. If they've already me a decent profit on flipping properties they should be paying cash, unless they're doing many flips at the same time.

[–] seifer999 12 years ago

They indeed are doing many flips at the same time. Over 10.